NN Group: beats profit expectations, shares jump

(CercleFinance.com) - NN Group, the largest Dutch insurer, said its financial performance was "strong" in the fourth quarter, with operating profit up 25% year-on-year.


The company's operating profit was 428 million euros in the last three months of 2019, up from 343 million euros in the same quarter of 2018, which beat the consensus.

CEO David Knibbe said in a statement that the measures the group is taking to improve the profitability of its non-life business are bearing fruit, as its full-year combined ratio improved to 95.4%, from 99.4% at the end of 2018.

The combined ratio measures costs and claims as a percentage of premiums, so the further is is from 100 the more profitable the business is.

Another positive note was that NN also announced a new share buyback program of 250 million euros today, which is expected to start on 2 March and will be completed within 12 months.

NN Group's shares were jumping 8.7% at 36 euros in afternoon trading after these results.

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