Insurer NN Group resumes dividend as H1 core profit rises

Adds details on results, dividend and background

AMSTERDAM, Aug 6 (Reuters) - Dutch insurer NN Group NN.AS said on Thursday its first-half operating profit saw a marginal rise to 926 million euros ($1.1 billion), as the effect of the coronavirus pandemic on its results remained limited.

NN Group said its results have enabled the insurer to resume its dividend payments and share buyback program, after both were suspended in April due to the outbreak.

"The impact of the pandemic on our operating results was limited," Chief Executive David Knibbe said.

The largest Dutch insurer estimated the impact of the outbreak on its operating result at about 30 million euros in the first six months of the year, as sales and the value of new business were affected by restrictions to combat the spread of the virus.

NN Group in June said the COVID-19 was expected to have an impact of around 100 million euros on its 2020 operating profit.

Low interest rates and COVID-19 restrictions dented its operating capital generation by 22% to 543 million euros, while the value of new business was almost cut in half to 122 million euros.

The company will pay an interim dividend of 2.26 euros per share, which also includes the suspended final payout over 2019, and will buy the remaining 67 million euros worth of shares in its active 250 million euro program.

($1 = 0.8418 euros)

(Reporting by Bart Meijer; Editing by Kim Coghill and Sherry Jacob-Phillips)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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