NN Group N.V. (NN) is a public limited liability company (naamloze vennootschap) incorporated under Dutch law. NN has its official seat in Amsterdam, the Netherlands and its office address at Schenkkade 65, 2595 AS The Hague, the Netherlands. NN is recorded in the Commercial Register under number 52387534. The principal activities of NN are Life insurance, Non-life insurance and Banking. NN operates in the Netherlands, Belgium, Czech Republic, Greece, Hungary, Japan, Poland, Romania, Slovakia and Spain. Amounts in the annual accounts are in millions of euro, unless stated otherwise.
NN Group N.V. (NN) is a public limited liability company (naamloze vennootschap) incorporated under Dutch law. NN has its official seat in Amsterdam, the Netherlands and its office address at Schenkkade 65, 2595 AS The Hague, the Netherlands. NN is recorded in the Commercial Register under number 52387534. The principal activities of NN are Life insurance, Non-life insurance and Banking. NN operates in the Netherlands, Belgium, Czech Republic, Greece, Hungary, Japan, Poland, Romania, Slovakia and Spain. Amounts in the annual accounts are in millions of euro, unless stated otherwise.
NN prepares its Consolidated annual accounts in accordance with International Financial Reporting Standards as endorsed by the European Union (IFRS-EU) and Part 9 of Book 2 of the Dutch Civil Code. In the Consolidated annual accounts, the term IFRS-EU is used to refer to these standards, including the decisions NN made with regard to the options available under IFRS-EU. IFRS-EU provides a number of options in accounting policies. The key areas, in which IFRS-EU allows accounting policy choices and the related NN accounting policy, are summarised as follows:
NN disaggregates insurance finance result between profit or loss and in \u2018Other Comprehensive Income\u2019 (OCI) in equity.
NN\u2019s accounting policy for real estate investments is fair value, with changes in the fair value reflected immediately in the Consolidated profit and loss account.
NN\u2019s accounting policy for property in own use is fair value, with changes in the fair value reflected, after tax, in \u2018Other Comprehensive Income\u2019 (equity). A net negative revaluation on individual properties is reflected immediately in the Consolidated profit and loss account.
For hedge accounting NN continues to apply the IAS 39 hedge accounting requirements.
NN applies fair value hedge accounting to portfolio hedges of interest rate risk (macro hedging) under the EU \u2018carve out\u2019 of IFRS-EU. NN currently does not apply the IFRS-EU exemption for aggregation of certain insurance contracts.
NN\u2019s accounting policies under IFRS-EU, its decision on the options available and significant judgement used are included in the relevant notes.
The following change to existing standards became effective in 2025:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on 13 November 2025).
This change had no material impact on NN\u2019s Consolidated annual accounts.
The following amendments and revisions to standards and interpretations have been issued by the IASB but are not yet effective:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency (issued on 13 November 2025).
Amendments to the classification and measurement of financial instruments - Amendments to IFRS 9 and IFRS 7.
IFRS 18 Presentation and disclosure in financial statements.
IFRS 19 Subsidiaries without public accountability: disclosures.
Annual improvements volume 11.
These changes are not expected to have a material impact on NN\u2019s shareholders\u2019 equity or net result.
The following change to existing standards became effective in 2025:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on 13 November 2025).
This change had no material impact on NN\u2019s Consolidated annual accounts.
The following amendments and revisions to standards and interpretations have been issued by the IASB but are not yet effective:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency (issued on 13 November 2025).
Amendments to the classification and measurement of financial instruments - Amendments to IFRS 9 and IFRS 7.
IFRS 18 Presentation and disclosure in financial statements.
IFRS 19 Subsidiaries without public accountability: disclosures.
Annual improvements volume 11.
These changes are not expected to have a material impact on NN\u2019s shareholders\u2019 equity or net result.
The presentation of, and certain terms used in, the Consolidated balance sheet, Consolidated profit and loss account, Consolidated statement of cash flows, Consolidated statement of changes in equity and the notes was changed to provide additional and more relevant information or (for changes in comparative information) to better align with the current period presentation. The impact of these changes is explained in the respective notes when significant.
NN has identified the accounting policies that are most material to its business operations and to the understanding of its results. These material accounting policies are those which involve the most complex or subjective judgements and assumptions and relate to insurance contracts, acquisition accounting, the determination of the fair value of real estate and financial assets and liabilities and impairments. In each case, the determination of these items is fundamental to the financial condition and results of operations and requires management to make complex judgements based on information and financial data that may change in future periods. As a result, determinations regarding these items necessarily involve the use of assumptions and subjective judgements as to future events and are subject to change, as the use of different assumptions or data could produce significantly different results. All valuation techniques used are subject to internal review and approval. For further details on the application of these accounting policies, reference is made to the applicable notes to the Consolidated annual accounts and the information below.
Reference is made to Note 48 Risk management for a sensitivity analysis of certain assumptions.
NN has identified the accounting policies that are most material to its business operations and to the understanding of its results. These material accounting policies are those which involve the most complex or subjective judgements and assumptions and relate to insurance contracts, acquisition accounting, the determination of the fair value of real estate and financial assets and liabilities and impairments. In each case, the determination of these items is fundamental to the financial condition and results of operations and requires management to make complex judgements based on information and financial data that may change in future periods. As a result, determinations regarding these items necessarily involve the use of assumptions and subjective judgements as to future events and are subject to change, as the use of different assumptions or data could produce significantly different results. All valuation techniques used are subject to internal review and approval. For further details on the application of these accounting policies, reference is made to the applicable notes to the Consolidated annual accounts and the information below.
Reference is made to Note 48 Risk management for a sensitivity analysis of certain assumptions.
NN comprises NN Group N.V. and all its subsidiaries. The Consolidated annual accounts of NN comprise the accounts of NN Group N.V. and all entities over which NN has control. NN has control over an entity when NN is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The assessment of control is based on the substance of the relationship between NN and the entity and considers existing and potential voting rights that are substantive. For a right to be substantive, the holder must have the practical ability to exercise that right.
For interests in investment entities, the existence of control is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager. Financial interests for risk of policyholders are not taken into account when the policyholders decide on the investment allocations of their insurance policies (i.e. the policyholder has the \u2018power\u2019) and assume all risks and benefits of these investments (i.e. the policyholder assumes the variable returns).
The results of the operations and the net assets of subsidiaries are included in the profit and loss account and the balance sheet from the date control is obtained until the date control is lost. Minority interests are initially measured at their proportionate share of the subsidiaries\u2019 identifiable net assets at the date of acquisition. On disposal, the difference between the sales proceeds, net of directly attributable transaction costs, and the net assets is included in net result.
A subsidiary which NN has agreed to sell but is still legally owned by NN may still be controlled by NN at the balance sheet date and, therefore, still be included in the consolidation. Such a subsidiary may be presented as held for sale if certain conditions are met.
All intercompany transactions, balances and unrealised gains and losses on transactions between group companies are eliminated. Where necessary, the accounting policies used by subsidiaries are changed to ensure consistency with NN policies. In general, the reporting dates of subsidiaries are the same as the reporting date of NN.
A list of principal subsidiaries is included in Note 30 Principal subsidiaries and geographical information .
Items included in the annual accounts of each NN entity are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The Consolidated annual accounts are presented in euro, which is NN\u2019s functional and presentation currency.
Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the date of the transactions. The release of the Contractual Service Margin of insurance contracts is translated similarly. Exchange rate differences resulting from the settlement of transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account, except when deferred in equity as part of qualifying cash flow hedges, qualifying net investment hedges or as result of applying the OCI option on insurance contracts.
Exchange rate differences on non-monetary items, measured at fair value through profit or loss, are reported as part of the \u2018fair value gain or loss\u2019. Exchange rate differences on non-monetary items measured at fair value through Other Comprehensive Income (equity) are included in the \u2018Revaluation reserve\u2019 in equity.
Exchange rate differences in the profit and loss account are generally included in \u2018Foreign currency exchange results\u2019 as part of investment result. Exchange rate differences relating to the disposal of debt and equity securities are considered to be an inherent part of the capital gains and losses. On disposal of group companies, any foreign currency exchange difference deferred in equity is recognised in the profit and loss account in \u2018Result on disposals of group companies\u2019.
The results and financial positions of all group companies that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
Assets and liabilities included in each balance sheet are translated at the closing rate at the date of that balance sheet.
Income and expenses included in each profit and loss account are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions).
All resulting exchange rate differences are recognised in a separate component of equity in \u2018Currency translation reserve\u2019.
On consolidation, exchange rate differences arising from the translation of a monetary item that forms part of the net investment in a foreign operation and of borrowings and other instruments designated as hedges of such investments are taken to shareholders\u2019 equity. When a foreign operation is sold the corresponding exchange rate differences are recognised in the profit and loss account as part of the gain or loss on sale.
Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the exchange rate prevailing at the balance sheet date.
Financial assets and liabilities are generally (de)recognised at trade date, which is the date on which NN commits to purchase or sell the asset. Loans and receivables are recognised at settlement date, which is the date on which NN receives or delivers the asset.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or where NN has transferred substantially all risks and rewards of ownership. If NN neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, it derecognises the financial asset if it no longer has control over the asset.
Realised gains and losses on investments are determined as the difference between the sales proceeds and (amortised) cost. For equity securities, the cost is determined using a weighted average per portfolio. For debt securities, the cost is determined by specific identification (generally FIFO).
The maximum credit risk exposure for items on the balance sheet is generally the carrying value for the relevant financial assets. For the off-balance sheet items, the maximum credit exposure is the maximum amount that could be required to be paid. Reference is made to Note 40 Contingent liabilities and commitments for these off-balance sheet items. Collateral received is not taken into account when determining the maximum credit risk exposure. The manner in which NN manages credit risk and determines credit risk exposures is explained in Note 48 Risk management .
The leases entered into by NN as a lessee are primarily operating leases. At inception of a contract, NN assesses whether a contract is, or contains, a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The net present value of operating lease commitments is recognised on the balance sheet as a \u2018right of use asset\u2019 under Property and equipment or Real estate investments and a lease liability is recognised under Other liabilities. NN does not recognise a right of use asset and a lease liability for short-term leases that have a lease term of 12 months or less and for leases of low value assets. The lease payments associated with these leases are recognised as an expense.
NN commonly acts as trustee and in other fiduciary capacities that result in the holding or placing of assets on behalf of individuals, trusts, retirement benefit plans and other institutions when conducting asset management activities. The assets and income arising thereon are excluded from these annual accounts, as they are not assets or income of NN. Fees received acting as trustee and in other fiduciary capacities are recognised as income.
The Consolidated statement of cash flows is prepared in accordance with the indirect method, classifying cash flows as cash flows from operating, investing and financing activities. In the net cash flow from operating activities, the result before tax is adjusted for those items in the profit and loss account and changes in balance sheet items, which do not result in actual cash flows during the year.
Cash and cash equivalents comprise balances with less than three months maturity from the date of acquisition. Investments qualify as a cash equivalent if they are readily convertible into a known amount of cash and are not subject to significant risk of changes in value.
Cash flows arising from foreign currency transactions are translated into the functional currency using the exchange rates at the date of the cash flows.
The difference between the net cash flow in accordance with the statement of cash flows and the change in \u2018Cash and cash equivalents\u2019 in the balance sheet is due to foreign currency exchange differences and is accounted for separately as part of the reconciliation of the net cash flow and the balance sheet change in \u2018Cash and cash equivalents\u2019.
Cash flows arising from the issue of mortgage loans held in the banking operations are recognised under Net cash flows from operating activities, whereas cash flows related to mortgage loans held as investment in the insurance operations are recognised under Net cash flow from investing activities.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Foreign currency translation reserve \u2013 opening balance | -487 | -421 |
Unrealised revaluations after taxation | -6 | -23 |
Foreign currency exchange differences for the year | 11 | -43 |
Foreign currency translation reserve \u2013 closing balance | -482 | -487 |
Unrealised revaluations relate to changes in the value of hedging instruments that are designated as net investment hedges.
NN invests in several types of money market funds, some qualifying as cash equivalents and some as investments. Short-term investments in money market funds are presented as cash equivalents only if these are highly liquid and quoted in an active market and have low investment risk.
Investments at fair value through Other Comprehensive Income include debt securities and loans that are held in a business model \u2018held to collect and sell\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. The objective of this business model \u2018held to collect and sell\u2019 is to fund the insurance contracts. To achieve this objective, NN collects contractual cash flows as they come due and sells financial assets to maintain the desired profile of the asset portfolio. Investments at fair value through Other Comprehensive Income also include equity securities held by insurance entities within NN so as to align the accounting for financial assets under IFRS 9 as much as possible to the accounting for insurance liabilities under IFRS 17.
Investments at fair value through Other Comprehensive Income are initially recognised at fair value plus transaction costs. For debt securities and loans, the difference between cost and redemption value is amortised through the effective yield in the profit and loss account. Interest income on debt securities and loans is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Dividend income from equity securities classified as Investments at fair value through Other Comprehensive Income is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared. Investments at fair value through Other Comprehensive Income are subsequently measured at fair value. Unrealised gains and losses arising from changes in the fair value are recognised in Other Comprehensive Income (equity). For debt securities and loans, realised gains and losses on disposal, are recognised in the profit and loss account in \u2018Investment result\u2019.
Impairment applies to all debt securities and loans measured at amortised cost and at fair value through Other Comprehensive Income. Initially, a provision is recognised for expected credit losses within the next 12 months. This is referred to as \u2018Stage 1\u2019. If there is a significant increase in credit risk between the moment of initial recognition and the reporting date, but the exposure is not in default, the exposure is classified in \u2018Stage 2\u2019. If the exposure is in default (i.e. credit impaired), it is classified in \u2018Stage 3\u2019. For both \u2018Stage 2\u2019 and \u2018Stage 3\u2019, a provision is recognised for expected credit losses over the remaining lifetime of the financial asset.
An asset is in default if it is probable that NN will not be able to collect all amounts due (principal and interest) according to the contractual terms. Default risk is determined by considering credit risk and transfer risk. NN uses external and internal credit ratings as primary driver in determining whether credit risk has increased significantly together with other qualitative factors (such as market value indicators and portfolio manager assessments). If, at initial recognition, an asset is deemed to have low credit risk (i.e. for all financial assets with an internal or external rating of \u2018investment grade\u2019), a significant increase in credit risk will occur when the asset\u2019s credit rating falls below \u2018investment grade\u2019. NN will, in principle, not rebut the presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, except in specific cases if qualitative factors indicate there has not been a significant increase in credit risk.
The lifetime expected credit losses are calculated based on probability weighted macro-economic scenarios. The impairment for assets classified in stage 1 and stage 2 is determined by using Probability of Default, Loss Given Default and Exposure at Default parameters. Impairment on assets classified in stage 3 is determined by assessing the expected recoverable amount.
Determining impairments is an inherently uncertain process involving various assumptions and factors including condition of the counterparty, assessment of credit risk, statistical loss data, and discount rates. Estimates and assumptions are based on management\u2019s judgement and other information available. Significantly different results can occur as circumstances change and additional information becomes known.
In certain circumstances NN may grant borrowers postponement and/or reduction of loan principal and/or interest payments for a temporary period of time to maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. When such postponement and/or reduction of loan principal and/or interest payments is executed based on credit concerns it is also referred to as \u2018forbearance\u2019. If the forbearance results in a substantial modification of the terms of the loan, the original loan is derecognised and a new loan is recognised at its fair value at the modification date whereas the significance of increases in credit risk is determined as set out above. If the forbearance did not result in a substantial modification, the significance of an increase in the credit risk is determined by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor\u2019s credit rating), the previously recognised impairment loss is reversed. The amount of the reversal is recognised in the profit and loss account. NN writes off (part of) the gross carrying amount of a financial asset when it has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
Investments at cost consist of loans that are held in a business model \u2018held to collect\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. This mainly relates to mortgage loans in the segment Banking.
Investments at cost are initially recognised at fair value plus transaction costs. Subsequently, these are carried at amortised cost using the effective interest method less any impairment losses. Interest income is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
A financial asset is measured at fair value through profit or loss if it is not measured at (amortised) cost or at fair value through Other Comprehensive Income. Financial assets at fair value through profit or loss include debt securities and loans of which the cash flows are not considered solely payments of principal and interest on the principal amount outstanding, investments in investment funds, and investments held for risk of policyholders.
Transaction costs on initial recognition are expensed when incurred. Interest income from debt securities and loans classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method. Dividend income from equity securities classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared.
The investments for risk of policyholders are classified at fair value through profit or loss as to align with the accounting for the corresponding insurance liabilities.
Insurance policies without discretionary participation features which do not bear significant insurance risk are presented as Investment contracts. Investment contracts are determined at amortised cost, using the effective interest method, or at fair value.
Debt instruments issued, subordinated debt, and other borrowed funds are recognised initially at their issue proceeds (fair value of consideration received) net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between proceeds, net of transaction costs and the redemption value is recognised in the profit and loss account over the period of the borrowings using the effective interest method.
If NN Group N.V. purchases its own debt, it is derecognised from the balance sheet and the difference between the carrying value of the liability and the consideration paid is recognised in the profit and loss account.
Financial liabilities include only instruments of which the terms and conditions represent a contractual obligation to pay interest and/or principal. Instruments that are similar in substance, but of which the terms and conditions do not include a contractual obligation to pay interest and principal are classified as equity.
Derivatives are recognised at fair value. Derivatives are presented as assets when the fair value is positive and as liabilities when the fair value is negative.
The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. NN designates certain derivatives as hedges of highly probable future cash flows attributable to a recognised asset or liability or a forecast transaction (cash flow hedge), hedges of the fair value of recognised assets or liabilities or firm commitments (fair value hedge), or hedges of a net investment in a foreign operation. Hedge accounting is used for derivatives designated in this way provided certain criteria are met.
Reference is made to Note 34 Hedge accounting for further information on hedge accounting.
The Consolidated statement of cash flows is prepared in accordance with the indirect method, classifying cash flows as cash flows from operating, investing and financing activities. In the net cash flow from operating activities, the result before tax is adjusted for those items in the profit and loss account and changes in balance sheet items, which do not result in actual cash flows during the year.
Cash and cash equivalents comprise balances with less than three months maturity from the date of acquisition. Investments qualify as a cash equivalent if they are readily convertible into a known amount of cash and are not subject to significant risk of changes in value.
Cash flows arising from foreign currency transactions are translated into the functional currency using the exchange rates at the date of the cash flows.
The difference between the net cash flow in accordance with the statement of cash flows and the change in \u2018Cash and cash equivalents\u2019 in the balance sheet is due to foreign currency exchange differences and is accounted for separately as part of the reconciliation of the net cash flow and the balance sheet change in \u2018Cash and cash equivalents\u2019.
Cash flows arising from the issue of mortgage loans held in the banking operations are recognised under Net cash flows from operating activities, whereas cash flows related to mortgage loans held as investment in the insurance operations are recognised under Net cash flow from investing activities.
The Consolidated statement of cash flows is prepared in accordance with the indirect method, classifying cash flows as cash flows from operating, investing and financing activities. In the net cash flow from operating activities, the result before tax is adjusted for those items in the profit and loss account and changes in balance sheet items, which do not result in actual cash flows during the year.
Cash and cash equivalents comprise balances with less than three months maturity from the date of acquisition. Investments qualify as a cash equivalent if they are readily convertible into a known amount of cash and are not subject to significant risk of changes in value.
Cash flows arising from foreign currency transactions are translated into the functional currency using the exchange rates at the date of the cash flows.
The difference between the net cash flow in accordance with the statement of cash flows and the change in \u2018Cash and cash equivalents\u2019 in the balance sheet is due to foreign currency exchange differences and is accounted for separately as part of the reconciliation of the net cash flow and the balance sheet change in \u2018Cash and cash equivalents\u2019.
Cash flows arising from the issue of mortgage loans held in the banking operations are recognised under Net cash flows from operating activities, whereas cash flows related to mortgage loans held as investment in the insurance operations are recognised under Net cash flow from investing activities.
Cash includes short-term investments.
NN invests in several types of money market funds, some qualifying as cash equivalents and some as investments. Short-term investments in money market funds are presented as cash equivalents only if these are highly liquid and quoted in an active market and have low investment risk.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Cash and bank balances | 3,650 | 3,764 |
Money market funds | 2,024 | 2,759 |
Short-term deposits | 730 | 406 |
Cash and cash equivalents | 6,404 | 6,929 |
As at 31 December 2025, NN held EUR 1,936 million (31 December 2024: EUR 1,975 million) at central banks.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Changes in Cash and cash equivalents - opening balance | 6,929 | 8,207 |
Net cash flow | -452 | -1,247 |
Effect of foreign currency exchange differences on cash and cash equivalents | -73 | -31 |
Changes in Cash and cash equivalents - closing balance | 6,404 | 6,929 |
Cash includes short-term investments.
NN invests in several types of money market funds, some qualifying as cash equivalents and some as investments. Short-term investments in money market funds are presented as cash equivalents only if these are highly liquid and quoted in an active market and have low investment risk.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Cash and bank balances | 3,650 | 3,764 |
Money market funds | 2,024 | 2,759 |
Short-term deposits | 730 | 406 |
Cash and cash equivalents | 6,404 | 6,929 |
As at 31 December 2025, NN held EUR 1,936 million (31 December 2024: EUR 1,975 million) at central banks.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Changes in Cash and cash equivalents - opening balance | 6,929 | 8,207 |
Net cash flow | -452 | -1,247 |
Effect of foreign currency exchange differences on cash and cash equivalents | -73 | -31 |
Changes in Cash and cash equivalents - closing balance | 6,404 | 6,929 |
Investments at fair value through Other Comprehensive Income include debt securities and loans that are held in a business model \u2018held to collect and sell\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. The objective of this business model \u2018held to collect and sell\u2019 is to fund the insurance contracts. To achieve this objective, NN collects contractual cash flows as they come due and sells financial assets to maintain the desired profile of the asset portfolio. Investments at fair value through Other Comprehensive Income also include equity securities held by insurance entities within NN so as to align the accounting for financial assets under IFRS 9 as much as possible to the accounting for insurance liabilities under IFRS 17.
Investments at fair value through Other Comprehensive Income are initially recognised at fair value plus transaction costs. For debt securities and loans, the difference between cost and redemption value is amortised through the effective yield in the profit and loss account. Interest income on debt securities and loans is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Dividend income from equity securities classified as Investments at fair value through Other Comprehensive Income is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared. Investments at fair value through Other Comprehensive Income are subsequently measured at fair value. Unrealised gains and losses arising from changes in the fair value are recognised in Other Comprehensive Income (equity). For debt securities and loans, realised gains and losses on disposal, are recognised in the profit and loss account in \u2018Investment result\u2019.
Impairment applies to all debt securities and loans measured at amortised cost and at fair value through Other Comprehensive Income. Initially, a provision is recognised for expected credit losses within the next 12 months. This is referred to as \u2018Stage 1\u2019. If there is a significant increase in credit risk between the moment of initial recognition and the reporting date, but the exposure is not in default, the exposure is classified in \u2018Stage 2\u2019. If the exposure is in default (i.e. credit impaired), it is classified in \u2018Stage 3\u2019. For both \u2018Stage 2\u2019 and \u2018Stage 3\u2019, a provision is recognised for expected credit losses over the remaining lifetime of the financial asset.
An asset is in default if it is probable that NN will not be able to collect all amounts due (principal and interest) according to the contractual terms. Default risk is determined by considering credit risk and transfer risk. NN uses external and internal credit ratings as primary driver in determining whether credit risk has increased significantly together with other qualitative factors (such as market value indicators and portfolio manager assessments). If, at initial recognition, an asset is deemed to have low credit risk (i.e. for all financial assets with an internal or external rating of \u2018investment grade\u2019), a significant increase in credit risk will occur when the asset\u2019s credit rating falls below \u2018investment grade\u2019. NN will, in principle, not rebut the presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, except in specific cases if qualitative factors indicate there has not been a significant increase in credit risk.
The lifetime expected credit losses are calculated based on probability weighted macro-economic scenarios. The impairment for assets classified in stage 1 and stage 2 is determined by using Probability of Default, Loss Given Default and Exposure at Default parameters. Impairment on assets classified in stage 3 is determined by assessing the expected recoverable amount.
Determining impairments is an inherently uncertain process involving various assumptions and factors including condition of the counterparty, assessment of credit risk, statistical loss data, and discount rates. Estimates and assumptions are based on management\u2019s judgement and other information available. Significantly different results can occur as circumstances change and additional information becomes known.
In certain circumstances NN may grant borrowers postponement and/or reduction of loan principal and/or interest payments for a temporary period of time to maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. When such postponement and/or reduction of loan principal and/or interest payments is executed based on credit concerns it is also referred to as \u2018forbearance\u2019. If the forbearance results in a substantial modification of the terms of the loan, the original loan is derecognised and a new loan is recognised at its fair value at the modification date whereas the significance of increases in credit risk is determined as set out above. If the forbearance did not result in a substantial modification, the significance of an increase in the credit risk is determined by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor\u2019s credit rating), the previously recognised impairment loss is reversed. The amount of the reversal is recognised in the profit and loss account. NN writes off (part of) the gross carrying amount of a financial asset when it has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
Reference is made to Note 48 Risk management for more information on credit risk.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Debt securities | 61,063 | 65,198 |
Equity securities | 2,585 | 3,110 |
Loans | 35,821 | 37,742 |
Investments at fair value through Other Comprehensive Income | 99,469 | 106,050 |
2025 | Debt securities | Equity securities | Loans | Total |
|---|---|---|---|---|
Investments at fair value through OCI - opening balance | 65,198 | 3,110 | 37,742 | 106,050 |
Additions | 14,579 | 90 | 2,444 | 17,113 |
Disposals and redemptions | -14,099 | -409 | -3,887 | -18,395 |
Revaluations | -2,546 | -222 | -397 | -3,165 |
Impairments and reversal of impairments | -19 | \u00a0 | -7 | -26 |
Amortisation | 50 | \u00a0 | -47 | 3 |
Foreign currency exchange differences | -2,100 | 16 | -27 | -2,111 |
Investments at fair value through OCI - closing balance | 61,063 | 2,585 | 35,821 | 99,469 |
2024 | Debt securities | Equity securities | Loans | Total |
|---|---|---|---|---|
Investments at fair value through OCI - opening balance | 66,131 | 3,919 | 40,050 | 110,100 |
Additions | 13,129 | 173 | 1,990 | 15,292 |
Disposals and redemptions | -12,514 | -875 | -5,500 | -18,889 |
Revaluations | -1,588 | -106 | 1,223 | -471 |
Impairments and reversal of impairments | 23 | \u00a0 | -11 | 12 |
Amortisation | -18 | \u00a0 | -42 | -60 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | 14 | 14 |
Foreign currency exchange differences | 35 | -1 | 18 | 52 |
Investments at fair value through OCI - closing balance | 65,198 | 3,110 | 37,742 | 106,050 |
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | \u00a0 |
|---|---|---|---|---|
2025 | 12 month expected credit losses | Lifetime expected credit losses | Lifetime expected credit losses | Total |
Impairments - Investments at fair value through OCI and loans - opening balance | -30 | -18 | -60 | -108 |
Transfers between stage 1,2 and 3 | -1 | 6 | -5 | 0 |
Additions | -6 | -12 | -8 | -26 |
Disposals | 7 | 5 | 14 | 26 |
Impairments - Investments at fair value through OCI and loans - closing balance | -30 | -19 | -59 | -108 |
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | \u00a0 |
|---|---|---|---|---|
2024 | 12 month expected credit losses | Lifetime expected credit losses | Lifetime expected credit losses | Total |
Impairments - Investments at fair value through OCI and loans - opening balance | -82 | -15 | -67 | -164 |
Transfers between stage 1,2 and 3 | 2 | \u00a0 | -2 | 0 |
Additions | 38 | -13 | -13 | 12 |
Disposals | 12 | 10 | 22 | 44 |
Impairments - Investments at fair value through OCI and loans - closing balance | -30 | -18 | -60 | -108 |
The loss allowance for investments at fair value through Other Comprehensive Income of EUR 108 million (2024: EUR 108 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in Other Comprehensive Income and is included in the line \u2018Revaluations\u2019 in the table of Changes in investments at fair value through Other Comprehensive Income.
Investments at cost consist of loans that are held in a business model \u2018held to collect\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. This mainly relates to mortgage loans in the segment Banking.
Investments at cost are initially recognised at fair value plus transaction costs. Subsequently, these are carried at amortised cost using the effective interest method less any impairment losses. Interest income is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Reference is made to Note 3 Investments at fair value through Other Comprehensive Income for more information on impairment.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Mortgage loans | 22,323 | 22,182 |
Other | 53 | 54 |
Impairments | -2 | -2 |
Investments at cost - net of impairments | 22,374 | 22,234 |
2025 | Mortgage loans | Other | Total |
|---|---|---|---|
Investments at cost - opening balance | 22,179 | 55 | 22,234 |
Additions | 2,554 | 82 | 2,636 |
Disposals and redemptions | -2,098 | -83 | -2,181 |
Fair value changes recognised on hedged items | -291 | \u00a0 | -291 |
Amortisation | -24 | \u00a0 | -24 |
Investments at cost - closing balance | 22,320 | 54 | 22,374 |
2024 | Mortgage loans | Other | Total |
|---|---|---|---|
Investments at cost - opening balance | 21,387 | 101 | 21,488 |
Additions | 2,540 | 76 | 2,616 |
Disposals and redemptions | -1,938 | -126 | -2,064 |
Fair value changes recognised on hedged items | 186 | \u00a0 | 186 |
Impairments and reversal of impairments | 1 | \u00a0 | 1 |
Amortisation | 3 | \u00a0 | 3 |
Transfers and reclassifications | \u00a0 | 4 | 4 |
Investments at cost - closing balance | 22,179 | 55 | 22,234 |
A financial asset is measured at fair value through profit or loss if it is not measured at (amortised) cost or at fair value through Other Comprehensive Income. Financial assets at fair value through profit or loss include debt securities and loans of which the cash flows are not considered solely payments of principal and interest on the principal amount outstanding, investments in investment funds, and investments held for risk of policyholders.
Transaction costs on initial recognition are expensed when incurred. Interest income from debt securities and loans classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method. Dividend income from equity securities classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared.
The investments for risk of policyholders are classified at fair value through profit or loss as to align with the accounting for the corresponding insurance liabilities.
| \u00a0 | 2025 | 2024 |
|---|---|---|
For risk of policyholders: | \u00a0 | \u00a0 |
\u2013 debt securities | 650 | 797 |
\u2013 equity securities and investment funds | 44,737 | 41,999 |
\u2013 loans and other | 2,538 | 2,624 |
Total for risk of policyholders | 47,925 | 45,420 |
For risk of company: | \u00a0 | \u00a0 |
\u2013 debt securities | 470 | 445 |
\u2013 equity securities and investment funds | 7,761 | 8,679 |
\u2013 loans and other | 414 | 424 |
Total for risk of company | 8,645 | 9,548 |
Investments at fair value through profit or loss | 56,570 | 54,968 |
Debt instruments issued, subordinated debt, and other borrowed funds are recognised initially at their issue proceeds (fair value of consideration received) net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between proceeds, net of transaction costs and the redemption value is recognised in the profit and loss account over the period of the borrowings using the effective interest method.
If NN Group N.V. purchases its own debt, it is derecognised from the balance sheet and the difference between the carrying value of the liability and the consideration paid is recognised in the profit and loss account.
Financial liabilities include only instruments of which the terms and conditions represent a contractual obligation to pay interest and/or principal. Instruments that are similar in substance, but of which the terms and conditions do not include a contractual obligation to pay interest and principal are classified as equity.
Interest rate | Year of Issue | Due date | First call date | Notional amount | Balance sheet value | ||
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2025 | 2024 | 2025 | 2024 |
1.625% | 2017 | 1-6-2027 | 1-3-2027 | 600 | 600 | 599 | 599 |
0.875% | 2021 | 23-11-2031 | 23-5-2031 | 600 | 600 | 598 | 597 |
Debt instruments issued | \u00a0 | \u00a0 | \u00a0 | 1,197 | 1,196 |
Whilst retaining full flexibility and based on current holding company cash flow planning, NN announced in February 2026 that it does not intend to refinance the EUR 600 million in senior debt, originally used for acquiring Delta Lloyd, which is set to mature in 2027.
Interest rate | Year of Issue | Due date | First call date | Notional amount | Balance sheet value | ||
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2025 | 2024 | 2025 | 2024 |
4.625% | 2017 | 13-1-2048 | 13-1-2028 | 850 | 850 | 847 | 845 |
5.250% | 2022 | 1-3-2043 | 30-8-2032 | 500 | 500 | 495 | 494 |
6.000% | 2023 | 3-11-2043 | 3-5-2033 | 1,000 | 1,000 | 1,006 | 1,007 |
Subordinated debt | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,348 | 2,346 |
The above subordinated debt instruments have been issued to raise hybrid capital. Under IFRS-EU these debt instruments are classified as liabilities. They are considered capital for regulatory purposes. All subordinated debt is euro denominated.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Credit institutions | 4,025 | 1,856 |
Other | 5,850 | 6,131 |
Other borrowed funds | 9,875 | 7,987 |
Other borrowed funds includes the funding of the consolidated securitisation programmes as disclosed in Note 43 Structured entities and repo transactions used for liquidity management purposes.
During 2024, NN Bank redeemed EUR 1,000 million bonds under its Covered Bond Programme.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Savings | 7,575 | 7,724 |
Bank annuities | 10,340 | 9,750 |
Customer deposits | 17,915 | 17,474 |
Customers have not entrusted any funds to NN on terms other than those prevailing in the normal course of business. All customer deposits are interest-bearing.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Customer deposits \u2013 opening balance | 17,474 | 16,460 |
Deposits received | 4,641 | 4,694 |
Withdrawals | -4,164 | -3,661 |
Amortisation | -17 | -19 |
Fair value changes recognised on hedged items | -19 | \u00a0 |
Customer deposits\u2013 closing balance | 17,915 | 17,474 |
Derivatives are recognised at fair value. Derivatives are presented as assets when the fair value is positive and as liabilities when the fair value is negative.
The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. NN designates certain derivatives as hedges of highly probable future cash flows attributable to a recognised asset or liability or a forecast transaction (cash flow hedge), hedges of the fair value of recognised assets or liabilities or firm commitments (fair value hedge), or hedges of a net investment in a foreign operation. Hedge accounting is used for derivatives designated in this way provided certain criteria are met.
Reference is made to Note 34 Hedge accounting for further information on hedge accounting.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Derivatives used in: | \u00a0 | \u00a0 |
\u2013 fair value hedges | 6 | 4 |
\u2013 cash flow hedges | 94 | 630 |
\u2013 hedges of net investments in foreign operations | 1 | \u00a0 |
Other derivatives | 1,229 | 2,050 |
Derivatives (assets) | 1,330 | 2,684 |
Other derivatives comprises derivatives for which no hedge accounting is applied.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Derivatives used in: | \u00a0 | \u00a0 |
\u2013 fair value hedges | \u00a0 | 1 |
\u2013 cash flow hedges | 2,564 | 1,463 |
\u2013 hedges of net investments in foreign operations | 2 | 2 |
Other derivatives | 1,794 | 2,205 |
Derivatives (liabilities) | 4,360 | 3,671 |
NN invests in several types of money market funds, some qualifying as cash equivalents and some as investments. Short-term investments in money market funds are presented as cash equivalents only if these are highly liquid and quoted in an active market and have low investment risk.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i6461": { "value": "NN invests in several types of money market funds, some qualifying as cash equivalents and some as investments. Short-term investments in money market funds are presented as cash equivalents only if these are highly liquid and quoted in an active market and have low investment risk.
Investments at fair value through Other Comprehensive Income include debt securities and loans that are held in a business model \u2018held to collect and sell\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. The objective of this business model \u2018held to collect and sell\u2019 is to fund the insurance contracts. To achieve this objective, NN collects contractual cash flows as they come due and sells financial assets to maintain the desired profile of the asset portfolio. Investments at fair value through Other Comprehensive Income also include equity securities held by insurance entities within NN so as to align the accounting for financial assets under IFRS 9 as much as possible to the accounting for insurance liabilities under IFRS 17.
Investments at fair value through Other Comprehensive Income are initially recognised at fair value plus transaction costs. For debt securities and loans, the difference between cost and redemption value is amortised through the effective yield in the profit and loss account. Interest income on debt securities and loans is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Dividend income from equity securities classified as Investments at fair value through Other Comprehensive Income is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared. Investments at fair value through Other Comprehensive Income are subsequently measured at fair value. Unrealised gains and losses arising from changes in the fair value are recognised in Other Comprehensive Income (equity). For debt securities and loans, realised gains and losses on disposal, are recognised in the profit and loss account in \u2018Investment result\u2019.
Impairment applies to all debt securities and loans measured at amortised cost and at fair value through Other Comprehensive Income. Initially, a provision is recognised for expected credit losses within the next 12 months. This is referred to as \u2018Stage 1\u2019. If there is a significant increase in credit risk between the moment of initial recognition and the reporting date, but the exposure is not in default, the exposure is classified in \u2018Stage 2\u2019. If the exposure is in default (i.e. credit impaired), it is classified in \u2018Stage 3\u2019. For both \u2018Stage 2\u2019 and \u2018Stage 3\u2019, a provision is recognised for expected credit losses over the remaining lifetime of the financial asset.
An asset is in default if it is probable that NN will not be able to collect all amounts due (principal and interest) according to the contractual terms. Default risk is determined by considering credit risk and transfer risk. NN uses external and internal credit ratings as primary driver in determining whether credit risk has increased significantly together with other qualitative factors (such as market value indicators and portfolio manager assessments). If, at initial recognition, an asset is deemed to have low credit risk (i.e. for all financial assets with an internal or external rating of \u2018investment grade\u2019), a significant increase in credit risk will occur when the asset\u2019s credit rating falls below \u2018investment grade\u2019. NN will, in principle, not rebut the presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, except in specific cases if qualitative factors indicate there has not been a significant increase in credit risk.
The lifetime expected credit losses are calculated based on probability weighted macro-economic scenarios. The impairment for assets classified in stage 1 and stage 2 is determined by using Probability of Default, Loss Given Default and Exposure at Default parameters. Impairment on assets classified in stage 3 is determined by assessing the expected recoverable amount.
Determining impairments is an inherently uncertain process involving various assumptions and factors including condition of the counterparty, assessment of credit risk, statistical loss data, and discount rates. Estimates and assumptions are based on management\u2019s judgement and other information available. Significantly different results can occur as circumstances change and additional information becomes known.
In certain circumstances NN may grant borrowers postponement and/or reduction of loan principal and/or interest payments for a temporary period of time to maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. When such postponement and/or reduction of loan principal and/or interest payments is executed based on credit concerns it is also referred to as \u2018forbearance\u2019. If the forbearance results in a substantial modification of the terms of the loan, the original loan is derecognised and a new loan is recognised at its fair value at the modification date whereas the significance of increases in credit risk is determined as set out above. If the forbearance did not result in a substantial modification, the significance of an increase in the credit risk is determined by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor\u2019s credit rating), the previously recognised impairment loss is reversed. The amount of the reversal is recognised in the profit and loss account. NN writes off (part of) the gross carrying amount of a financial asset when it has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
Investments at cost consist of loans that are held in a business model \u2018held to collect\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. This mainly relates to mortgage loans in the segment Banking.
Investments at cost are initially recognised at fair value plus transaction costs. Subsequently, these are carried at amortised cost using the effective interest method less any impairment losses. Interest income is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Reference is made to Note 3 Investments at fair value through Other Comprehensive Income for more information on impairment.
A financial asset is measured at fair value through profit or loss if it is not measured at (amortised) cost or at fair value through Other Comprehensive Income. Financial assets at fair value through profit or loss include debt securities and loans of which the cash flows are not considered solely payments of principal and interest on the principal amount outstanding, investments in investment funds, and investments held for risk of policyholders.
Transaction costs on initial recognition are expensed when incurred. Interest income from debt securities and loans classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method. Dividend income from equity securities classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared.
The investments for risk of policyholders are classified at fair value through profit or loss as to align with the accounting for the corresponding insurance liabilities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i6463": { "value": "NN invests in several types of money market funds, some qualifying as cash equivalents and some as investments. Short-term investments in money market funds are presented as cash equivalents only if these are highly liquid and quoted in an active market and have low investment risk.
Investments at fair value through Other Comprehensive Income include debt securities and loans that are held in a business model \u2018held to collect and sell\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. The objective of this business model \u2018held to collect and sell\u2019 is to fund the insurance contracts. To achieve this objective, NN collects contractual cash flows as they come due and sells financial assets to maintain the desired profile of the asset portfolio. Investments at fair value through Other Comprehensive Income also include equity securities held by insurance entities within NN so as to align the accounting for financial assets under IFRS 9 as much as possible to the accounting for insurance liabilities under IFRS 17.
Investments at fair value through Other Comprehensive Income are initially recognised at fair value plus transaction costs. For debt securities and loans, the difference between cost and redemption value is amortised through the effective yield in the profit and loss account. Interest income on debt securities and loans is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Dividend income from equity securities classified as Investments at fair value through Other Comprehensive Income is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared. Investments at fair value through Other Comprehensive Income are subsequently measured at fair value. Unrealised gains and losses arising from changes in the fair value are recognised in Other Comprehensive Income (equity). For debt securities and loans, realised gains and losses on disposal, are recognised in the profit and loss account in \u2018Investment result\u2019.
Impairment applies to all debt securities and loans measured at amortised cost and at fair value through Other Comprehensive Income. Initially, a provision is recognised for expected credit losses within the next 12 months. This is referred to as \u2018Stage 1\u2019. If there is a significant increase in credit risk between the moment of initial recognition and the reporting date, but the exposure is not in default, the exposure is classified in \u2018Stage 2\u2019. If the exposure is in default (i.e. credit impaired), it is classified in \u2018Stage 3\u2019. For both \u2018Stage 2\u2019 and \u2018Stage 3\u2019, a provision is recognised for expected credit losses over the remaining lifetime of the financial asset.
An asset is in default if it is probable that NN will not be able to collect all amounts due (principal and interest) according to the contractual terms. Default risk is determined by considering credit risk and transfer risk. NN uses external and internal credit ratings as primary driver in determining whether credit risk has increased significantly together with other qualitative factors (such as market value indicators and portfolio manager assessments). If, at initial recognition, an asset is deemed to have low credit risk (i.e. for all financial assets with an internal or external rating of \u2018investment grade\u2019), a significant increase in credit risk will occur when the asset\u2019s credit rating falls below \u2018investment grade\u2019. NN will, in principle, not rebut the presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, except in specific cases if qualitative factors indicate there has not been a significant increase in credit risk.
The lifetime expected credit losses are calculated based on probability weighted macro-economic scenarios. The impairment for assets classified in stage 1 and stage 2 is determined by using Probability of Default, Loss Given Default and Exposure at Default parameters. Impairment on assets classified in stage 3 is determined by assessing the expected recoverable amount.
Determining impairments is an inherently uncertain process involving various assumptions and factors including condition of the counterparty, assessment of credit risk, statistical loss data, and discount rates. Estimates and assumptions are based on management\u2019s judgement and other information available. Significantly different results can occur as circumstances change and additional information becomes known.
In certain circumstances NN may grant borrowers postponement and/or reduction of loan principal and/or interest payments for a temporary period of time to maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. When such postponement and/or reduction of loan principal and/or interest payments is executed based on credit concerns it is also referred to as \u2018forbearance\u2019. If the forbearance results in a substantial modification of the terms of the loan, the original loan is derecognised and a new loan is recognised at its fair value at the modification date whereas the significance of increases in credit risk is determined as set out above. If the forbearance did not result in a substantial modification, the significance of an increase in the credit risk is determined by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor\u2019s credit rating), the previously recognised impairment loss is reversed. The amount of the reversal is recognised in the profit and loss account. NN writes off (part of) the gross carrying amount of a financial asset when it has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
Investments at cost consist of loans that are held in a business model \u2018held to collect\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. This mainly relates to mortgage loans in the segment Banking.
Investments at cost are initially recognised at fair value plus transaction costs. Subsequently, these are carried at amortised cost using the effective interest method less any impairment losses. Interest income is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Transaction costs on initial recognition are expensed when incurred. Interest income from debt securities and loans classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method. Dividend income from equity securities classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared.
The investments for risk of policyholders are classified at fair value through profit or loss as to align with the accounting for the corresponding insurance liabilities.
Real estate investments are initially measured at cost, including transaction cost and are subsequently measured at fair value. Changes in the carrying value resulting from revaluations are recognised in the profit and loss account. On disposal, the difference between the sales proceeds and carrying value is recognised in the profit and loss account. The fair value of real estate investments is based on regular appraisals by independent qualified valuers. All real estate investments are appraised externally at least annually. Market transactions and disposals made by NN are monitored as part of the validation procedures to test the valuations. Valuations performed earlier in the year are updated if necessary to reflect the situation at the year-end.
The fair value represents the estimated amount for which the property could be exchanged on the date of valuation between a willing buyer and willing seller in an at-arm\u2019s-length transaction after proper marketing wherein the parties each acted knowledgeably, prudently and without compulsion. The fair value is based on regular appraisals by external qualified valuers using valuation methods such as comparable market transactions, capitalisation of income methods or discounted cash flow calculations. The underlying assumption used in the valuation is that the properties are let or sold to third parties based on the actual letting status. The discounted cash flow analysis and capitalisation of income method are based on calculations of the future rental income in accordance with the terms in existing leases and estimations of the rental values for new leases when leases expire and incentives like rent-free periods. The cash flows are discounted using market-based interest rates that appropriately reflect the risk characteristics of real estate. The valuation of real estate investments takes (expected) vacancies into account. Occupancy rates differ significantly from investment to investment. For real estate investments held through (minority shares in) real estate investment funds, the valuations are performed under the responsibility of the funds\u2019 asset manager.
Subsequent expenditures are recognised as part of the asset\u2019s carrying value only when it is probable that future economic benefits associated with the item will flow to NN and the cost of an item can be measured reliably. All other repairs and maintenance costs are recognised immediately in the profit and loss account. Borrowing costs on real estate investments under construction are capitalised until completion.
Real estate investments under construction are included in investments in real estate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i6513": { "value": "Investments at fair value through Other Comprehensive Income include debt securities and loans that are held in a business model \u2018held to collect and sell\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. The objective of this business model \u2018held to collect and sell\u2019 is to fund the insurance contracts. To achieve this objective, NN collects contractual cash flows as they come due and sells financial assets to maintain the desired profile of the asset portfolio. Investments at fair value through Other Comprehensive Income also include equity securities held by insurance entities within NN so as to align the accounting for financial assets under IFRS 9 as much as possible to the accounting for insurance liabilities under IFRS 17.
Investments at fair value through Other Comprehensive Income are initially recognised at fair value plus transaction costs. For debt securities and loans, the difference between cost and redemption value is amortised through the effective yield in the profit and loss account. Interest income on debt securities and loans is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Dividend income from equity securities classified as Investments at fair value through Other Comprehensive Income is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared. Investments at fair value through Other Comprehensive Income are subsequently measured at fair value. Unrealised gains and losses arising from changes in the fair value are recognised in Other Comprehensive Income (equity). For debt securities and loans, realised gains and losses on disposal, are recognised in the profit and loss account in \u2018Investment result\u2019.
Impairment applies to all debt securities and loans measured at amortised cost and at fair value through Other Comprehensive Income. Initially, a provision is recognised for expected credit losses within the next 12 months. This is referred to as \u2018Stage 1\u2019. If there is a significant increase in credit risk between the moment of initial recognition and the reporting date, but the exposure is not in default, the exposure is classified in \u2018Stage 2\u2019. If the exposure is in default (i.e. credit impaired), it is classified in \u2018Stage 3\u2019. For both \u2018Stage 2\u2019 and \u2018Stage 3\u2019, a provision is recognised for expected credit losses over the remaining lifetime of the financial asset.
An asset is in default if it is probable that NN will not be able to collect all amounts due (principal and interest) according to the contractual terms. Default risk is determined by considering credit risk and transfer risk. NN uses external and internal credit ratings as primary driver in determining whether credit risk has increased significantly together with other qualitative factors (such as market value indicators and portfolio manager assessments). If, at initial recognition, an asset is deemed to have low credit risk (i.e. for all financial assets with an internal or external rating of \u2018investment grade\u2019), a significant increase in credit risk will occur when the asset\u2019s credit rating falls below \u2018investment grade\u2019. NN will, in principle, not rebut the presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, except in specific cases if qualitative factors indicate there has not been a significant increase in credit risk.
The lifetime expected credit losses are calculated based on probability weighted macro-economic scenarios. The impairment for assets classified in stage 1 and stage 2 is determined by using Probability of Default, Loss Given Default and Exposure at Default parameters. Impairment on assets classified in stage 3 is determined by assessing the expected recoverable amount.
Determining impairments is an inherently uncertain process involving various assumptions and factors including condition of the counterparty, assessment of credit risk, statistical loss data, and discount rates. Estimates and assumptions are based on management\u2019s judgement and other information available. Significantly different results can occur as circumstances change and additional information becomes known.
In certain circumstances NN may grant borrowers postponement and/or reduction of loan principal and/or interest payments for a temporary period of time to maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. When such postponement and/or reduction of loan principal and/or interest payments is executed based on credit concerns it is also referred to as \u2018forbearance\u2019. If the forbearance results in a substantial modification of the terms of the loan, the original loan is derecognised and a new loan is recognised at its fair value at the modification date whereas the significance of increases in credit risk is determined as set out above. If the forbearance did not result in a substantial modification, the significance of an increase in the credit risk is determined by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor\u2019s credit rating), the previously recognised impairment loss is reversed. The amount of the reversal is recognised in the profit and loss account. NN writes off (part of) the gross carrying amount of a financial asset when it has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
Reference is made to Note 48 Risk management for more information on credit risk.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Debt securities | 61,063 | 65,198 |
Equity securities | 2,585 | 3,110 |
Loans | 35,821 | 37,742 |
Investments at fair value through Other Comprehensive Income | 99,469 | 106,050 |
2025 | Debt securities | Equity securities | Loans | Total |
|---|---|---|---|---|
Investments at fair value through OCI - opening balance | 65,198 | 3,110 | 37,742 | 106,050 |
Additions | 14,579 | 90 | 2,444 | 17,113 |
Disposals and redemptions | -14,099 | -409 | -3,887 | -18,395 |
Revaluations | -2,546 | -222 | -397 | -3,165 |
Impairments and reversal of impairments | -19 | \u00a0 | -7 | -26 |
Amortisation | 50 | \u00a0 | -47 | 3 |
Foreign currency exchange differences | -2,100 | 16 | -27 | -2,111 |
Investments at fair value through OCI - closing balance | 61,063 | 2,585 | 35,821 | 99,469 |
2024 | Debt securities | Equity securities | Loans | Total |
|---|---|---|---|---|
Investments at fair value through OCI - opening balance | 66,131 | 3,919 | 40,050 | 110,100 |
Additions | 13,129 | 173 | 1,990 | 15,292 |
Disposals and redemptions | -12,514 | -875 | -5,500 | -18,889 |
Revaluations | -1,588 | -106 | 1,223 | -471 |
Impairments and reversal of impairments | 23 | \u00a0 | -11 | 12 |
Amortisation | -18 | \u00a0 | -42 | -60 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | 14 | 14 |
Foreign currency exchange differences | 35 | -1 | 18 | 52 |
Investments at fair value through OCI - closing balance | 65,198 | 3,110 | 37,742 | 106,050 |
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | \u00a0 |
|---|---|---|---|---|
2025 | 12 month expected credit losses | Lifetime expected credit losses | Lifetime expected credit losses | Total |
Impairments - Investments at fair value through OCI and loans - opening balance | -30 | -18 | -60 | -108 |
Transfers between stage 1,2 and 3 | -1 | 6 | -5 | 0 |
Additions | -6 | -12 | -8 | -26 |
Disposals | 7 | 5 | 14 | 26 |
Impairments - Investments at fair value through OCI and loans - closing balance | -30 | -19 | -59 | -108 |
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | \u00a0 |
|---|---|---|---|---|
2024 | 12 month expected credit losses | Lifetime expected credit losses | Lifetime expected credit losses | Total |
Impairments - Investments at fair value through OCI and loans - opening balance | -82 | -15 | -67 | -164 |
Transfers between stage 1,2 and 3 | 2 | \u00a0 | -2 | 0 |
Additions | 38 | -13 | -13 | 12 |
Disposals | 12 | 10 | 22 | 44 |
Impairments - Investments at fair value through OCI and loans - closing balance | -30 | -18 | -60 | -108 |
The loss allowance for investments at fair value through Other Comprehensive Income of EUR 108 million (2024: EUR 108 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in Other Comprehensive Income and is included in the line \u2018Revaluations\u2019 in the table of Changes in investments at fair value through Other Comprehensive Income.
Investments at cost consist of loans that are held in a business model \u2018held to collect\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. This mainly relates to mortgage loans in the segment Banking.
Investments at cost are initially recognised at fair value plus transaction costs. Subsequently, these are carried at amortised cost using the effective interest method less any impairment losses. Interest income is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Reference is made to Note 3 Investments at fair value through Other Comprehensive Income for more information on impairment.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Mortgage loans | 22,323 | 22,182 |
Other | 53 | 54 |
Impairments | -2 | -2 |
Investments at cost - net of impairments | 22,374 | 22,234 |
2025 | Mortgage loans | Other | Total |
|---|---|---|---|
Investments at cost - opening balance | 22,179 | 55 | 22,234 |
Additions | 2,554 | 82 | 2,636 |
Disposals and redemptions | -2,098 | -83 | -2,181 |
Fair value changes recognised on hedged items | -291 | \u00a0 | -291 |
Amortisation | -24 | \u00a0 | -24 |
Investments at cost - closing balance | 22,320 | 54 | 22,374 |
2024 | Mortgage loans | Other | Total |
|---|---|---|---|
Investments at cost - opening balance | 21,387 | 101 | 21,488 |
Additions | 2,540 | 76 | 2,616 |
Disposals and redemptions | -1,938 | -126 | -2,064 |
Fair value changes recognised on hedged items | 186 | \u00a0 | 186 |
Impairments and reversal of impairments | 1 | \u00a0 | 1 |
Amortisation | 3 | \u00a0 | 3 |
Transfers and reclassifications | \u00a0 | 4 | 4 |
Investments at cost - closing balance | 22,179 | 55 | 22,234 |
A financial asset is measured at fair value through profit or loss if it is not measured at (amortised) cost or at fair value through Other Comprehensive Income. Financial assets at fair value through profit or loss include debt securities and loans of which the cash flows are not considered solely payments of principal and interest on the principal amount outstanding, investments in investment funds, and investments held for risk of policyholders.
Transaction costs on initial recognition are expensed when incurred. Interest income from debt securities and loans classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method. Dividend income from equity securities classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared.
The investments for risk of policyholders are classified at fair value through profit or loss as to align with the accounting for the corresponding insurance liabilities.
| \u00a0 | 2025 | 2024 |
|---|---|---|
For risk of policyholders: | \u00a0 | \u00a0 |
\u2013 debt securities | 650 | 797 |
\u2013 equity securities and investment funds | 44,737 | 41,999 |
\u2013 loans and other | 2,538 | 2,624 |
Total for risk of policyholders | 47,925 | 45,420 |
For risk of company: | \u00a0 | \u00a0 |
\u2013 debt securities | 470 | 445 |
\u2013 equity securities and investment funds | 7,761 | 8,679 |
\u2013 loans and other | 414 | 424 |
Total for risk of company | 8,645 | 9,548 |
Investments at fair value through profit or loss | 56,570 | 54,968 |
Real estate investments are initially measured at cost, including transaction cost and are subsequently measured at fair value. Changes in the carrying value resulting from revaluations are recognised in the profit and loss account. On disposal, the difference between the sales proceeds and carrying value is recognised in the profit and loss account. The fair value of real estate investments is based on regular appraisals by independent qualified valuers. All real estate investments are appraised externally at least annually. Market transactions and disposals made by NN are monitored as part of the validation procedures to test the valuations. Valuations performed earlier in the year are updated if necessary to reflect the situation at the year-end.
The fair value represents the estimated amount for which the property could be exchanged on the date of valuation between a willing buyer and willing seller in an at-arm\u2019s-length transaction after proper marketing wherein the parties each acted knowledgeably, prudently and without compulsion. The fair value is based on regular appraisals by external qualified valuers using valuation methods such as comparable market transactions, capitalisation of income methods or discounted cash flow calculations. The underlying assumption used in the valuation is that the properties are let or sold to third parties based on the actual letting status. The discounted cash flow analysis and capitalisation of income method are based on calculations of the future rental income in accordance with the terms in existing leases and estimations of the rental values for new leases when leases expire and incentives like rent-free periods. The cash flows are discounted using market-based interest rates that appropriately reflect the risk characteristics of real estate. The valuation of real estate investments takes (expected) vacancies into account. Occupancy rates differ significantly from investment to investment. For real estate investments held through (minority shares in) real estate investment funds, the valuations are performed under the responsibility of the funds\u2019 asset manager.
Subsequent expenditures are recognised as part of the asset\u2019s carrying value only when it is probable that future economic benefits associated with the item will flow to NN and the cost of an item can be measured reliably. All other repairs and maintenance costs are recognised immediately in the profit and loss account. Borrowing costs on real estate investments under construction are capitalised until completion.
Real estate investments under construction are included in investments in real estate.
Reference is made to Note 33 Fair value of non-financial assets for more disclosure on fair value of real estate investments at the balance sheet date.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments in real estate \u2013 opening balance | 2,512 | 2,620 |
Additions | 70 | 114 |
Transfers from (to) property in own use | 4 | \u00a0 |
Transfers from (to) other assets | 3 | -3 |
Fair value gains (losses) | 17 | -13 |
Disposals | -372 | -206 |
Investments in real estate \u2013 closing balance | 2,234 | 2,512 |
The total amount of rental income recognised in the profit and loss account for the year ended 31 December 2025 is EUR 158 million (2024: EUR 170 million). The real estate investments include properties that are leased (ground lease). At 31 December 2025, the corresponding right of use assets amount to EUR 91 million (2024: EUR 70 million).
The total amount of direct operating expenses (including repairs and maintenance) in relation to real estate investments recognised in rental income for the year ended 31 December 2025 EUR 55 million (2024: EUR 61 million).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Most recent appraisal in current year | 100% | 100% |
NN\u2019s total exposure to real estate is included in the following balance sheet lines:
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments in real estate | 2,234 | 2,512 |
Investments at fair value through profit or loss | 1,898 | 2,050 |
Investments at fair value through OCI | 385 | 369 |
Investments in associates and joint ventures | 4,786 | 4,586 |
Property and equipment \u2013 property in own use | 70 | 91 |
Real estate exposure | 9,373 | 9,608 |
Furthermore, the exposure is impacted by third-party interests, leverage in funds and off-balance commitments. Reference is made to Note 48 Risk management.
Impairment applies to all debt securities and loans measured at amortised cost and at fair value through Other Comprehensive Income. Initially, a provision is recognised for expected credit losses within the next 12 months. This is referred to as \u2018Stage 1\u2019. If there is a significant increase in credit risk between the moment of initial recognition and the reporting date, but the exposure is not in default, the exposure is classified in \u2018Stage 2\u2019. If the exposure is in default (i.e. credit impaired), it is classified in \u2018Stage 3\u2019. For both \u2018Stage 2\u2019 and \u2018Stage 3\u2019, a provision is recognised for expected credit losses over the remaining lifetime of the financial asset.
An asset is in default if it is probable that NN will not be able to collect all amounts due (principal and interest) according to the contractual terms. Default risk is determined by considering credit risk and transfer risk. NN uses external and internal credit ratings as primary driver in determining whether credit risk has increased significantly together with other qualitative factors (such as market value indicators and portfolio manager assessments). If, at initial recognition, an asset is deemed to have low credit risk (i.e. for all financial assets with an internal or external rating of \u2018investment grade\u2019), a significant increase in credit risk will occur when the asset\u2019s credit rating falls below \u2018investment grade\u2019. NN will, in principle, not rebut the presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, except in specific cases if qualitative factors indicate there has not been a significant increase in credit risk.
The lifetime expected credit losses are calculated based on probability weighted macro-economic scenarios. The impairment for assets classified in stage 1 and stage 2 is determined by using Probability of Default, Loss Given Default and Exposure at Default parameters. Impairment on assets classified in stage 3 is determined by assessing the expected recoverable amount.
Determining impairments is an inherently uncertain process involving various assumptions and factors including condition of the counterparty, assessment of credit risk, statistical loss data, and discount rates. Estimates and assumptions are based on management\u2019s judgement and other information available. Significantly different results can occur as circumstances change and additional information becomes known.
In certain circumstances NN may grant borrowers postponement and/or reduction of loan principal and/or interest payments for a temporary period of time to maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. When such postponement and/or reduction of loan principal and/or interest payments is executed based on credit concerns it is also referred to as \u2018forbearance\u2019. If the forbearance results in a substantial modification of the terms of the loan, the original loan is derecognised and a new loan is recognised at its fair value at the modification date whereas the significance of increases in credit risk is determined as set out above. If the forbearance did not result in a substantial modification, the significance of an increase in the credit risk is determined by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor\u2019s credit rating), the previously recognised impairment loss is reversed. The amount of the reversal is recognised in the profit and loss account. NN writes off (part of) the gross carrying amount of a financial asset when it has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
Impairment applies to all debt securities and loans measured at amortised cost and at fair value through Other Comprehensive Income. Initially, a provision is recognised for expected credit losses within the next 12 months. This is referred to as \u2018Stage 1\u2019. If there is a significant increase in credit risk between the moment of initial recognition and the reporting date, but the exposure is not in default, the exposure is classified in \u2018Stage 2\u2019. If the exposure is in default (i.e. credit impaired), it is classified in \u2018Stage 3\u2019. For both \u2018Stage 2\u2019 and \u2018Stage 3\u2019, a provision is recognised for expected credit losses over the remaining lifetime of the financial asset.
An asset is in default if it is probable that NN will not be able to collect all amounts due (principal and interest) according to the contractual terms. Default risk is determined by considering credit risk and transfer risk. NN uses external and internal credit ratings as primary driver in determining whether credit risk has increased significantly together with other qualitative factors (such as market value indicators and portfolio manager assessments). If, at initial recognition, an asset is deemed to have low credit risk (i.e. for all financial assets with an internal or external rating of \u2018investment grade\u2019), a significant increase in credit risk will occur when the asset\u2019s credit rating falls below \u2018investment grade\u2019. NN will, in principle, not rebut the presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, except in specific cases if qualitative factors indicate there has not been a significant increase in credit risk.
The lifetime expected credit losses are calculated based on probability weighted macro-economic scenarios. The impairment for assets classified in stage 1 and stage 2 is determined by using Probability of Default, Loss Given Default and Exposure at Default parameters. Impairment on assets classified in stage 3 is determined by assessing the expected recoverable amount.
Determining impairments is an inherently uncertain process involving various assumptions and factors including condition of the counterparty, assessment of credit risk, statistical loss data, and discount rates. Estimates and assumptions are based on management\u2019s judgement and other information available. Significantly different results can occur as circumstances change and additional information becomes known.
In certain circumstances NN may grant borrowers postponement and/or reduction of loan principal and/or interest payments for a temporary period of time to maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. When such postponement and/or reduction of loan principal and/or interest payments is executed based on credit concerns it is also referred to as \u2018forbearance\u2019. If the forbearance results in a substantial modification of the terms of the loan, the original loan is derecognised and a new loan is recognised at its fair value at the modification date whereas the significance of increases in credit risk is determined as set out above. If the forbearance did not result in a substantial modification, the significance of an increase in the credit risk is determined by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor\u2019s credit rating), the previously recognised impairment loss is reversed. The amount of the reversal is recognised in the profit and loss account. NN writes off (part of) the gross carrying amount of a financial asset when it has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
Impairment applies to all debt securities and loans measured at amortised cost and at fair value through Other Comprehensive Income. Initially, a provision is recognised for expected credit losses within the next 12 months. This is referred to as \u2018Stage 1\u2019. If there is a significant increase in credit risk between the moment of initial recognition and the reporting date, but the exposure is not in default, the exposure is classified in \u2018Stage 2\u2019. If the exposure is in default (i.e. credit impaired), it is classified in \u2018Stage 3\u2019. For both \u2018Stage 2\u2019 and \u2018Stage 3\u2019, a provision is recognised for expected credit losses over the remaining lifetime of the financial asset.
An asset is in default if it is probable that NN will not be able to collect all amounts due (principal and interest) according to the contractual terms. Default risk is determined by considering credit risk and transfer risk. NN uses external and internal credit ratings as primary driver in determining whether credit risk has increased significantly together with other qualitative factors (such as market value indicators and portfolio manager assessments). If, at initial recognition, an asset is deemed to have low credit risk (i.e. for all financial assets with an internal or external rating of \u2018investment grade\u2019), a significant increase in credit risk will occur when the asset\u2019s credit rating falls below \u2018investment grade\u2019. NN will, in principle, not rebut the presumption that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, except in specific cases if qualitative factors indicate there has not been a significant increase in credit risk.
The lifetime expected credit losses are calculated based on probability weighted macro-economic scenarios. The impairment for assets classified in stage 1 and stage 2 is determined by using Probability of Default, Loss Given Default and Exposure at Default parameters. Impairment on assets classified in stage 3 is determined by assessing the expected recoverable amount.
Determining impairments is an inherently uncertain process involving various assumptions and factors including condition of the counterparty, assessment of credit risk, statistical loss data, and discount rates. Estimates and assumptions are based on management\u2019s judgement and other information available. Significantly different results can occur as circumstances change and additional information becomes known.
In certain circumstances NN may grant borrowers postponement and/or reduction of loan principal and/or interest payments for a temporary period of time to maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. When such postponement and/or reduction of loan principal and/or interest payments is executed based on credit concerns it is also referred to as \u2018forbearance\u2019. If the forbearance results in a substantial modification of the terms of the loan, the original loan is derecognised and a new loan is recognised at its fair value at the modification date whereas the significance of increases in credit risk is determined as set out above. If the forbearance did not result in a substantial modification, the significance of an increase in the credit risk is determined by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor\u2019s credit rating), the previously recognised impairment loss is reversed. The amount of the reversal is recognised in the profit and loss account. NN writes off (part of) the gross carrying amount of a financial asset when it has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Debt securities | 61,063 | 65,198 |
Equity securities | 2,585 | 3,110 |
Loans | 35,821 | 37,742 |
Investments at fair value through Other Comprehensive Income | 99,469 | 106,050 |
2025 | Debt securities | Equity securities | Loans | Total |
|---|---|---|---|---|
Investments at fair value through OCI - opening balance | 65,198 | 3,110 | 37,742 | 106,050 |
Additions | 14,579 | 90 | 2,444 | 17,113 |
Disposals and redemptions | -14,099 | -409 | -3,887 | -18,395 |
Revaluations | -2,546 | -222 | -397 | -3,165 |
Impairments and reversal of impairments | -19 | \u00a0 | -7 | -26 |
Amortisation | 50 | \u00a0 | -47 | 3 |
Foreign currency exchange differences | -2,100 | 16 | -27 | -2,111 |
Investments at fair value through OCI - closing balance | 61,063 | 2,585 | 35,821 | 99,469 |
2024 | Debt securities | Equity securities | Loans | Total |
|---|---|---|---|---|
Investments at fair value through OCI - opening balance | 66,131 | 3,919 | 40,050 | 110,100 |
Additions | 13,129 | 173 | 1,990 | 15,292 |
Disposals and redemptions | -12,514 | -875 | -5,500 | -18,889 |
Revaluations | -1,588 | -106 | 1,223 | -471 |
Impairments and reversal of impairments | 23 | \u00a0 | -11 | 12 |
Amortisation | -18 | \u00a0 | -42 | -60 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | 14 | 14 |
Foreign currency exchange differences | 35 | -1 | 18 | 52 |
Investments at fair value through OCI - closing balance | 65,198 | 3,110 | 37,742 | 106,050 |
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | \u00a0 |
|---|---|---|---|---|
2025 | 12 month expected credit losses | Lifetime expected credit losses | Lifetime expected credit losses | Total |
Impairments - Investments at fair value through OCI and loans - opening balance | -30 | -18 | -60 | -108 |
Transfers between stage 1,2 and 3 | -1 | 6 | -5 | 0 |
Additions | -6 | -12 | -8 | -26 |
Disposals | 7 | 5 | 14 | 26 |
Impairments - Investments at fair value through OCI and loans - closing balance | -30 | -19 | -59 | -108 |
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | \u00a0 |
|---|---|---|---|---|
2024 | 12 month expected credit losses | Lifetime expected credit losses | Lifetime expected credit losses | Total |
Impairments - Investments at fair value through OCI and loans - opening balance | -82 | -15 | -67 | -164 |
Transfers between stage 1,2 and 3 | 2 | \u00a0 | -2 | 0 |
Additions | 38 | -13 | -13 | 12 |
Disposals | 12 | 10 | 22 | 44 |
Impairments - Investments at fair value through OCI and loans - closing balance | -30 | -18 | -60 | -108 |
The loss allowance for investments at fair value through Other Comprehensive Income of EUR 108 million (2024: EUR 108 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in Other Comprehensive Income and is included in the line \u2018Revaluations\u2019 in the table of Changes in investments at fair value through Other Comprehensive Income.
Investments at cost consist of loans that are held in a business model \u2018held to collect\u2019 and of which the cash flows are considered solely payments of principal and interest on the principal amount outstanding. This mainly relates to mortgage loans in the segment Banking.
Investments at cost are initially recognised at fair value plus transaction costs. Subsequently, these are carried at amortised cost using the effective interest method less any impairment losses. Interest income is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method.
Reference is made to Note 3 Investments at fair value through Other Comprehensive Income for more information on impairment.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Mortgage loans | 22,323 | 22,182 |
Other | 53 | 54 |
Impairments | -2 | -2 |
Investments at cost - net of impairments | 22,374 | 22,234 |
2025 | Mortgage loans | Other | Total |
|---|---|---|---|
Investments at cost - opening balance | 22,179 | 55 | 22,234 |
Additions | 2,554 | 82 | 2,636 |
Disposals and redemptions | -2,098 | -83 | -2,181 |
Fair value changes recognised on hedged items | -291 | \u00a0 | -291 |
Amortisation | -24 | \u00a0 | -24 |
Investments at cost - closing balance | 22,320 | 54 | 22,374 |
2024 | Mortgage loans | Other | Total |
|---|---|---|---|
Investments at cost - opening balance | 21,387 | 101 | 21,488 |
Additions | 2,540 | 76 | 2,616 |
Disposals and redemptions | -1,938 | -126 | -2,064 |
Fair value changes recognised on hedged items | 186 | \u00a0 | 186 |
Impairments and reversal of impairments | 1 | \u00a0 | 1 |
Amortisation | 3 | \u00a0 | 3 |
Transfers and reclassifications | \u00a0 | 4 | 4 |
Investments at cost - closing balance | 22,179 | 55 | 22,234 |
NN\u2019s acquisitions are accounted for using the acquisition method of accounting. Goodwill, being the positive difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, is capitalised as an intangible asset. In case there is a negative difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, this is referred to as negative goodwill and is recognised in profit and loss in the reporting period the acquisition is finalised. Acquisition related costs are recognised in the profit and loss account when incurred and presented in the profit and loss account as \u2018Other operating expenses\u2019.
The initial accounting for the fair value of the net assets of the companies acquired during the year may be determined only provisionally as the determination of the fair value can be complex and the time between the acquisition and the preparation of the annual accounts can be limited. The initial accounting shall be completed within a year after acquisition.
Where a business combination is achieved in stages, NN\u2019s previously held interests in the assets and liabilities of the acquired entity are remeasured to fair value at the acquisition date (i.e. the date NN obtains control) and the resulting gain or loss, if any, is recognised in the profit and loss account. Amounts arising from interests in the acquiree before the acquisition date that have previously been recognised in Other Comprehensive Income (equity) are reclassified to the profit and loss account, where such treatment would be appropriate if that interest were disposed of.
Intangible assets with finite useful lives are amortised on a straight-line basis over the estimated useful lives. Methods of amortisation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Amortisation is included in \u2018Other operating expenses\u2019.
Computer software that has been purchased or generated internally for own use is stated at cost less amortisation and any impairment losses. The expected useful life of computer software will generally not exceed three years.
Other intangible assets include brand names, client relationships and distribution channels. These assets are stated at cost less amortisation and any impairment losses. The estimated useful life is generally between 2 and 18 years.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
2025 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 869 | 72 | 288 | 1,229 |
Additions | 7 | 26 | 4 | 37 |
Amortisation | \u00a0 | -33 | -38 | -71 |
Disposals | \u00a0 | -1 | \u00a0 | -1 |
Changes in the composition of the group and other changes | -4 | 19 | -22 | -7 |
Foreign currency exchange differences | 3 | -1 | \u00a0 | 2 |
Intangible assets \u2013 closing balance | 875 | 82 | 232 | 1,189 |
Gross carrying value | 1,848 | 1,073 | 853 | 3,774 |
Accumulated amortisation | \u00a0 | -921 | -571 | -1,492 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 875 | 82 | 232 | 1,189 |
2024 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 892 | 79 | 299 | 1,270 |
Additions | \u00a0 | 36 | 3 | 39 |
Amortisation | \u00a0 | -37 | -38 | -75 |
Disposals | \u00a0 | -6 | \u00a0 | -6 |
Changes in the composition of the group and other changes | -26 | \u00a0 | 24 | -2 |
Foreign currency exchange differences | 3 | \u00a0 | \u00a0 | 3 |
Intangible assets \u2013 closing balance | 869 | 72 | 288 | 1,229 |
Gross carrying value | 1,842 | 1,030 | 871 | 3,743 |
Accumulated amortisation | \u00a0 | -888 | -533 | -1,421 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 869 | 72 | 288 | 1,229 |
Other intangible assets include the intangibles recognised upon the acquisition of Met Life Greece, Heinenoord, VIVAT Non-life and the remaining part of the intangibles recognised in 2017 on the acquisition of Delta Lloyd.
The acquisition intangibles comprise:
Brand names \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Client relationships \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Distribution channels/agreements \u2013 with an average expected remaining useful life at the acquisition date of approximately 18 years.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Netherlands Non-life | 441 | 434 |
Insurance Europe | 372 | 373 |
Banking | 62 | 62 |
Goodwill | 875 | 869 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Netherlands Life | 27 | -2 |
Netherlands Non-life | \u00a0 | -4 |
Insurance Europe | \u00a0 | -2 |
Japan Life | -1 | -2 |
Banking | \u00a0 | -2 |
Other | \u00a0 | -1 |
Total | 26 | -13 |
2025 | Debt securities | Equity securities | Loans | Total |
|---|---|---|---|---|
Investments at fair value through OCI - opening balance | 65,198 | 3,110 | 37,742 | 106,050 |
Additions | 14,579 | 90 | 2,444 | 17,113 |
Disposals and redemptions | -14,099 | -409 | -3,887 | -18,395 |
Revaluations | -2,546 | -222 | -397 | -3,165 |
Impairments and reversal of impairments | -19 | \u00a0 | -7 | -26 |
Amortisation | 50 | \u00a0 | -47 | 3 |
Foreign currency exchange differences | -2,100 | 16 | -27 | -2,111 |
Investments at fair value through OCI - closing balance | 61,063 | 2,585 | 35,821 | 99,469 |
2024 | Debt securities | Equity securities | Loans | Total |
|---|---|---|---|---|
Investments at fair value through OCI - opening balance | 66,131 | 3,919 | 40,050 | 110,100 |
Additions | 13,129 | 173 | 1,990 | 15,292 |
Disposals and redemptions | -12,514 | -875 | -5,500 | -18,889 |
Revaluations | -1,588 | -106 | 1,223 | -471 |
Impairments and reversal of impairments | 23 | \u00a0 | -11 | 12 |
Amortisation | -18 | \u00a0 | -42 | -60 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | 14 | 14 |
Foreign currency exchange differences | 35 | -1 | 18 | 52 |
Investments at fair value through OCI - closing balance | 65,198 | 3,110 | 37,742 | 106,050 |
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | \u00a0 |
|---|---|---|---|---|
2025 | 12 month expected credit losses | Lifetime expected credit losses | Lifetime expected credit losses | Total |
Impairments - Investments at fair value through OCI and loans - opening balance | -30 | -18 | -60 | -108 |
Transfers between stage 1,2 and 3 | -1 | 6 | -5 | 0 |
Additions | -6 | -12 | -8 | -26 |
Disposals | 7 | 5 | 14 | 26 |
Impairments - Investments at fair value through OCI and loans - closing balance | -30 | -19 | -59 | -108 |
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | \u00a0 |
|---|---|---|---|---|
2024 | 12 month expected credit losses | Lifetime expected credit losses | Lifetime expected credit losses | Total |
Impairments - Investments at fair value through OCI and loans - opening balance | -82 | -15 | -67 | -164 |
Transfers between stage 1,2 and 3 | 2 | \u00a0 | -2 | 0 |
Additions | 38 | -13 | -13 | 12 |
Disposals | 12 | 10 | 22 | 44 |
Impairments - Investments at fair value through OCI and loans - closing balance | -30 | -18 | -60 | -108 |
The loss allowance for investments at fair value through Other Comprehensive Income of EUR 108 million (2024: EUR 108 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in Other Comprehensive Income and is included in the line \u2018Revaluations\u2019 in the table of Changes in investments at fair value through Other Comprehensive Income.
2025 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 869 | 72 | 288 | 1,229 |
Additions | 7 | 26 | 4 | 37 |
Amortisation | \u00a0 | -33 | -38 | -71 |
Disposals | \u00a0 | -1 | \u00a0 | -1 |
Changes in the composition of the group and other changes | -4 | 19 | -22 | -7 |
Foreign currency exchange differences | 3 | -1 | \u00a0 | 2 |
Intangible assets \u2013 closing balance | 875 | 82 | 232 | 1,189 |
Gross carrying value | 1,848 | 1,073 | 853 | 3,774 |
Accumulated amortisation | \u00a0 | -921 | -571 | -1,492 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 875 | 82 | 232 | 1,189 |
2024 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 892 | 79 | 299 | 1,270 |
Additions | \u00a0 | 36 | 3 | 39 |
Amortisation | \u00a0 | -37 | -38 | -75 |
Disposals | \u00a0 | -6 | \u00a0 | -6 |
Changes in the composition of the group and other changes | -26 | \u00a0 | 24 | -2 |
Foreign currency exchange differences | 3 | \u00a0 | \u00a0 | 3 |
Intangible assets \u2013 closing balance | 869 | 72 | 288 | 1,229 |
Gross carrying value | 1,842 | 1,030 | 871 | 3,743 |
Accumulated amortisation | \u00a0 | -888 | -533 | -1,421 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 869 | 72 | 288 | 1,229 |
Other intangible assets include the intangibles recognised upon the acquisition of Met Life Greece, Heinenoord, VIVAT Non-life and the remaining part of the intangibles recognised in 2017 on the acquisition of Delta Lloyd.
The acquisition intangibles comprise:
Brand names \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Client relationships \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Distribution channels/agreements \u2013 with an average expected remaining useful life at the acquisition date of approximately 18 years.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Netherlands Non-life | 441 | 434 |
Insurance Europe | 372 | 373 |
Banking | 62 | 62 |
Goodwill | 875 | 869 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Customer deposits \u2013 opening balance | 17,474 | 16,460 |
Deposits received | 4,641 | 4,694 |
Withdrawals | -4,164 | -3,661 |
Amortisation | -17 | -19 |
Fair value changes recognised on hedged items | -19 | \u00a0 |
Customer deposits\u2013 closing balance | 17,915 | 17,474 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Depreciation of property and equipment | 68 | 82 |
Amortisation of software | 33 | 36 |
Computer costs | 344 | 310 |
Office expenses | 60 | 69 |
Travel and accommodation expenses | 18 | 17 |
Advertising and public relations | 88 | 85 |
External advisory fees | 232 | 211 |
Claims handling expenses | 217 | 234 |
Additions to (releases of) other provisions | 37 | 7 |
Commissions, fees and other | 1,585 | 1,480 |
Other operating expenses | 2,682 | 2,531 |
The loss allowance for investments at fair value through Other Comprehensive Income of EUR 108 million (2024: EUR 108 million) does not reduce the carrying amount of these investments (which are measured at fair value) but gives rise to an equal and opposite gain in Other Comprehensive Income and is included in the line \u2018Revaluations\u2019 in the table of Changes in investments at fair value through Other Comprehensive Income.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i6903": { "value": "A financial asset is measured at fair value through profit or loss if it is not measured at (amortised) cost or at fair value through Other Comprehensive Income. Financial assets at fair value through profit or loss include debt securities and loans of which the cash flows are not considered solely payments of principal and interest on the principal amount outstanding, investments in investment funds, and investments held for risk of policyholders.
Transaction costs on initial recognition are expensed when incurred. Interest income from debt securities and loans classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method. Dividend income from equity securities classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared.
The investments for risk of policyholders are classified at fair value through profit or loss as to align with the accounting for the corresponding insurance liabilities.
| \u00a0 | 2025 | 2024 |
|---|---|---|
For risk of policyholders: | \u00a0 | \u00a0 |
\u2013 debt securities | 650 | 797 |
\u2013 equity securities and investment funds | 44,737 | 41,999 |
\u2013 loans and other | 2,538 | 2,624 |
Total for risk of policyholders | 47,925 | 45,420 |
For risk of company: | \u00a0 | \u00a0 |
\u2013 debt securities | 470 | 445 |
\u2013 equity securities and investment funds | 7,761 | 8,679 |
\u2013 loans and other | 414 | 424 |
Total for risk of company | 8,645 | 9,548 |
Investments at fair value through profit or loss | 56,570 | 54,968 |
A financial asset is measured at fair value through profit or loss if it is not measured at (amortised) cost or at fair value through Other Comprehensive Income. Financial assets at fair value through profit or loss include debt securities and loans of which the cash flows are not considered solely payments of principal and interest on the principal amount outstanding, investments in investment funds, and investments held for risk of policyholders.
Transaction costs on initial recognition are expensed when incurred. Interest income from debt securities and loans classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 using the effective interest method. Dividend income from equity securities classified as investments at fair value through profit or loss is recognised in the profit and loss account in \u2018Investment result\u2019 when the dividend has been declared.
The investments for risk of policyholders are classified at fair value through profit or loss as to align with the accounting for the corresponding insurance liabilities.
Derivatives are recognised at fair value. Derivatives are presented as assets when the fair value is positive and as liabilities when the fair value is negative.
The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. NN designates certain derivatives as hedges of highly probable future cash flows attributable to a recognised asset or liability or a forecast transaction (cash flow hedge), hedges of the fair value of recognised assets or liabilities or firm commitments (fair value hedge), or hedges of a net investment in a foreign operation. Hedge accounting is used for derivatives designated in this way provided certain criteria are met.
Reference is made to Note 34 Hedge accounting for further information on hedge accounting.
Real estate investments are initially measured at cost, including transaction cost and are subsequently measured at fair value. Changes in the carrying value resulting from revaluations are recognised in the profit and loss account. On disposal, the difference between the sales proceeds and carrying value is recognised in the profit and loss account. The fair value of real estate investments is based on regular appraisals by independent qualified valuers. All real estate investments are appraised externally at least annually. Market transactions and disposals made by NN are monitored as part of the validation procedures to test the valuations. Valuations performed earlier in the year are updated if necessary to reflect the situation at the year-end.
The fair value represents the estimated amount for which the property could be exchanged on the date of valuation between a willing buyer and willing seller in an at-arm\u2019s-length transaction after proper marketing wherein the parties each acted knowledgeably, prudently and without compulsion. The fair value is based on regular appraisals by external qualified valuers using valuation methods such as comparable market transactions, capitalisation of income methods or discounted cash flow calculations. The underlying assumption used in the valuation is that the properties are let or sold to third parties based on the actual letting status. The discounted cash flow analysis and capitalisation of income method are based on calculations of the future rental income in accordance with the terms in existing leases and estimations of the rental values for new leases when leases expire and incentives like rent-free periods. The cash flows are discounted using market-based interest rates that appropriately reflect the risk characteristics of real estate. The valuation of real estate investments takes (expected) vacancies into account. Occupancy rates differ significantly from investment to investment. For real estate investments held through (minority shares in) real estate investment funds, the valuations are performed under the responsibility of the funds\u2019 asset manager.
Subsequent expenditures are recognised as part of the asset\u2019s carrying value only when it is probable that future economic benefits associated with the item will flow to NN and the cost of an item can be measured reliably. All other repairs and maintenance costs are recognised immediately in the profit and loss account. Borrowing costs on real estate investments under construction are capitalised until completion.
Real estate investments under construction are included in investments in real estate.
Reference is made to Note 33 Fair value of non-financial assets for more disclosure on fair value of real estate investments at the balance sheet date.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments in real estate \u2013 opening balance | 2,512 | 2,620 |
Additions | 70 | 114 |
Transfers from (to) property in own use | 4 | \u00a0 |
Transfers from (to) other assets | 3 | -3 |
Fair value gains (losses) | 17 | -13 |
Disposals | -372 | -206 |
Investments in real estate \u2013 closing balance | 2,234 | 2,512 |
The total amount of rental income recognised in the profit and loss account for the year ended 31 December 2025 is EUR 158 million (2024: EUR 170 million). The real estate investments include properties that are leased (ground lease). At 31 December 2025, the corresponding right of use assets amount to EUR 91 million (2024: EUR 70 million).
The total amount of direct operating expenses (including repairs and maintenance) in relation to real estate investments recognised in rental income for the year ended 31 December 2025 EUR 55 million (2024: EUR 61 million).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Most recent appraisal in current year | 100% | 100% |
NN\u2019s total exposure to real estate is included in the following balance sheet lines:
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments in real estate | 2,234 | 2,512 |
Investments at fair value through profit or loss | 1,898 | 2,050 |
Investments at fair value through OCI | 385 | 369 |
Investments in associates and joint ventures | 4,786 | 4,586 |
Property and equipment \u2013 property in own use | 70 | 91 |
Real estate exposure | 9,373 | 9,608 |
Furthermore, the exposure is impacted by third-party interests, leverage in funds and off-balance commitments. Reference is made to Note 48 Risk management.
Real estate investments are initially measured at cost, including transaction cost and are subsequently measured at fair value. Changes in the carrying value resulting from revaluations are recognised in the profit and loss account. On disposal, the difference between the sales proceeds and carrying value is recognised in the profit and loss account. The fair value of real estate investments is based on regular appraisals by independent qualified valuers. All real estate investments are appraised externally at least annually. Market transactions and disposals made by NN are monitored as part of the validation procedures to test the valuations. Valuations performed earlier in the year are updated if necessary to reflect the situation at the year-end.
The fair value represents the estimated amount for which the property could be exchanged on the date of valuation between a willing buyer and willing seller in an at-arm\u2019s-length transaction after proper marketing wherein the parties each acted knowledgeably, prudently and without compulsion. The fair value is based on regular appraisals by external qualified valuers using valuation methods such as comparable market transactions, capitalisation of income methods or discounted cash flow calculations. The underlying assumption used in the valuation is that the properties are let or sold to third parties based on the actual letting status. The discounted cash flow analysis and capitalisation of income method are based on calculations of the future rental income in accordance with the terms in existing leases and estimations of the rental values for new leases when leases expire and incentives like rent-free periods. The cash flows are discounted using market-based interest rates that appropriately reflect the risk characteristics of real estate. The valuation of real estate investments takes (expected) vacancies into account. Occupancy rates differ significantly from investment to investment. For real estate investments held through (minority shares in) real estate investment funds, the valuations are performed under the responsibility of the funds\u2019 asset manager.
Subsequent expenditures are recognised as part of the asset\u2019s carrying value only when it is probable that future economic benefits associated with the item will flow to NN and the cost of an item can be measured reliably. All other repairs and maintenance costs are recognised immediately in the profit and loss account. Borrowing costs on real estate investments under construction are capitalised until completion.
Real estate investments under construction are included in investments in real estate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i7059": { "value": "Associates are entities over which NN has significant influence but not control. Joint ventures are entities in which NN has joint control.
Associates and joint ventures are initially recognised at cost (including goodwill) and subsequently accounted for using the equity method of accounting. Subsequently, NN\u2019s share of profits or losses is recognised in the profit and loss account and its share of changes in reserves is recognised in Other Comprehensive Income (equity). The cumulative changes are adjusted against the carrying value of the investment. When NN\u2019s share of losses in an associate or joint venture equals or exceeds the book value of the associate or joint venture, NN does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
Unrealised gains and losses on transactions between NN and its associates and joint ventures are eliminated to the extent of NN\u2019s interest. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies of NN. The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
For interests in investment entities the existence of significant influence is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager.
Associates include interests in real estate funds and private equity funds. The underlying assets of both the real estate and the private equity funds are measured at fair value through profit or loss. The fair value of underlying real estate in real estate funds is determined as included in Note 6 Investments in real estate.
The fair value of underlying private equity investments in private equity funds is generally based on a forward-looking market approach. This approach uses a combination of company financials and quoted market multiples. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and by reference to market valuations for similar entities quoted in an active market. Valuations of private equity investments are mainly based on an \u2018adjusted multiple of earnings\u2019 methodology on the following basis:
Earnings: reported earnings are adjusted for non-recurring items, such as restructuring expenses, for significant corporate actions and, in exceptional cases, for run-rate adjustments to arrive at maintainable earnings. The most common measure is earnings before interest, tax, depreciation and amortisation (EBITDA). Earnings used are usually management forecasts for the current year, unless data from management accounts for the 12 months preceding the reporting period or the latest audited annual accounts provide a more reliable estimate of maintainable earnings.
Earnings multiples: earnings multiples are derived from comparable listed companies or relevant market transaction multiples for companies in the same industry and, where possible, with a similar business model and profile in terms of size, products, services and customers, growth rates and geographic focus.
Adjustments are made for differences in the relative performance in the group of comparable companies.
Adjustments: a marketability or liquidity discount is applied based on factors such as alignment with management and other investors and NN\u2019s investment rights in the deal structure.
2025 | Interest held | Balance sheet value | Total assets | Total liabilities | Total income | Total expenses |
|---|---|---|---|---|---|---|
Vesteda Residential Fund FGR, The Netherlands | 24% | 1,895 | 10,419 | 2,575 | 1,058 | 208 |
Macquarie European Infrastructure Debt Fund | 44% | 372 | 850 | 11 | 38 | 12 |
Hayfin Amber GP S.A R.L. | 100% | 368 | 731 | 363 | 24 | 10 |
Nestar Residencial S.I.I. S.A. | 27% | 310 | 1,787 | 631 | 144 | 67 |
Rivage Euro Debt infrastructure 3 | 34% | 301 | 884 | 2 | 34 | 20 |
CBRE Dutch Residential Fund I FGR | 9% | 265 | 3,047 | 140 | 307 | 44 |
CBRE Retail Property Fund Iberica L.P. | 50% | 256 | 1,031 | 519 | 121 | 37 |
Rivage Priv. Debt \u2013 Fund for Infrastructure Climate Solutions | 100% | 237 | 238 | \u00a0 | 19 | 4 |
CBRE Dutch Office Fund FGR | 19% | 227 | 1,895 | 673 | 103 | 76 |
Rivage Euro Debt Infrastructure High return 2 | 34% | 220 | 725 | 69 | 52 | 11 |
Ardstone Residential Income Fund | 21% | 208 | 1,350 | 368 | 82 | 30 |
Bentall Green Oak Europe Secured Lending III SLP | 33% | 207 | 667 | 32 | 39 | 9 |
Rivage Hopitaux Publics Euro | 34% | 193 | 564 | 4 | 20 | 11 |
Macquarie Climate Inv Debt. | 100% | 189 | 249 | 61 | 17 | 11 |
Macquarie Direct Lending Europe SCSp | 90% | 188 | 353 | 144 | 12 | 16 |
NRP Nordic Logistic Fund SA | 42% | 187 | 434 | -10 | 36 | 5 |
Healthcare Activos SOCIMI S.A. | 38% | 185 | 922 | 434 | 61 | 26 |
Dutch Urban Living Venture FGR | 49% | 173 | 503 | 153 | 52 | 9 |
Dutch Student and Young Professional Housing Fund FGR | 49% | 153 | 390 | 81 | 42 | 6 |
AXA CITRUS CRE Enhanced SMA | 100% | 124 | 124 | \u00a0 | 1 | \u00a0 |
Allee center Kft | 50% | 121 | 261 | 20 | 31 | 8 |
CBRE Dutch Retail Fund FGR | 22% | 116 | 751 | 227 | 22 | 27 |
Dutch Climate Action Fund Equity Vintage 1 C.V. | 97% | 100 | 103 | 0 | \u00a0 | -2 |
Fiumaranuova s.r.l. | 50% | 98 | 206 | 11 | 36 | 24 |
Hayfin TS Fund | 79% | 97 | 336 | 214 | 8 | \u00a0 |
DPE Deutschland III (Parallel) GmbH & Co | 17% | 90 | 647 | 123 | 169 | 3 |
Octopus Commercial Real Estate Debt Fund III LP | 46% | 88 | 192 | \u00a0 | 27 | 17 |
Delta Mainlog Holding GmbH & Co. KG | 50% | 77 | 155 | 1 | 12 | 2 |
Boccaccio - Closed-end Real Estate Mutual Investment Fund | 50% | 75 | 200 | 49 | -11 | 5 |
NL Boompjes Property 5 C.V. | 50% | 69 | 138 | 1 | 12 | 2 |
CRE Senior Debt SCA SICAV-RAIF - CRE Senior 17 | 40% | 66 | 179 | 14 | 2 | \u00a0 |
CBRE Property Fund Central and Eastern Europe FGR | 50% | 64 | 189 | 62 | 27 | 9 |
Prime Ventures V C.V. | 18% | 62 | 345 | \u00a0 | 46 | 5 |
ION Residential Platform NV | 48% | 52 | 177 | 68 | 5 | 4 |
Other | \u00a0 | 641 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investments in associates and joint ventures | \u00a0 | 8,074 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
The above investments in associates and joint ventures mainly consist of non-listed investment entities investing in real estate and private equity. Therefore the assets and liabilities are mainly non-current.
Significant influence exists for certain associates in which the interest held is below 20%, based on the combination of NN\u2019s financial interest for own risk and other arrangements, such as participation in the relevant boards.
NN holds associates over which it cannot exercise control despite holding more than 50% of the share capital. For this reason, these are classified as associates and are not consolidated.
Other includes EUR 571 million (2024: EUR 474 million) of associates and joint ventures with an individual balance sheet value of less than EUR 50 million and EUR 70 million (2024: EUR 82 million) of receivables from associates and joint ventures.
The amounts presented in the table above could differ from the individual annual accounts of the associates due to the fact that the individual amounts have been brought in line with NN\u2019s accounting principles.
The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
The associates and joint ventures of NN are subject to legal and regulatory restrictions regarding the amount of dividends that can be paid to NN. These restrictions are, for example, dependent on the laws in the country of incorporation for declaring dividends or as a result of minimum capital requirements imposed by industry regulators in the countries in which the associates and joint ventures operate. In addition, the associates and joint ventures also consider other factors in determining the appropriate levels of equity needed. These factors and limitations include, but are not limited to, rating agency and regulatory views, which can change over time.
2024 | Interest held | Balance sheet value | Total assets | Total liabilities | Total income | Total expenses |
|---|---|---|---|---|---|---|
Vesteda Residential Fund FGR, The Netherlands | 24% | 1,757 | 10,050 | 2,779 | 1,335 | 206 |
Macquarie European Infrastructure Debt Fund | 47% | 357 | 756 | 1 | 64 | 2 |
Rivage Euro Debt infrastructure 3 | 34% | 317 | 927 | \u00a0 | 55 | 7 |
Nestar Residencial S.I.I. S.A. | 23% | 268 | 1,762 | 606 | 105 | 67 |
CBRE Dutch Office Fund FGR | 19% | 263 | 2,129 | 715 | 79 | 81 |
Hayfin Amber GP S.A R.L. | 100% | 253 | 347 | 94 | 22 | 3 |
CBRE Dutch Residential Fund I FGR | 8% | 250 | 3,161 | 140 | 340 | 39 |
CBRE Retail Property Fund Iberica L.P. | 50% | 225 | 988 | 537 | 109 | 36 |
Rivage Hopitaux Publics Euro | 34% | 207 | 600 | \u00a0 | 17 | 6 |
Ardstone Residential Income Fund | 29% | 203 | 1,068 | 363 | 33 | 28 |
NRP Nordic Logistic Fund SA | 42% | 187 | 474 | 30 | 22 | 5 |
Healthcare Activos SOCIMI S.A. | 38% | 177 | 883 | 416 | 35 | 26 |
Rivage Priv. Debt \u2013 Fund for Infrastructure Climate Solutions | 100% | 168 | 169 | 1 | 14 | 2 |
Dutch Urban Living Venture FGR | 49% | 160 | 478 | 155 | 66 | 12 |
Rivage Euro Debt Infrastructure High return 2 | 34% | 153 | 454 | \u00a0 | 37 | 8 |
Dutch Student and Young Professional Housing Fund FGR | 49% | 143 | 370 | 81 | 45 | 8 |
CBRE Dutch Retail Fund FGR | 22% | 126 | 790 | 223 | 11 | 25 |
Allee center Kft | 50% | 116 | 251 | 19 | 20 | 12 |
Fiumaranuova s.r.l. | 50% | 98 | 202 | 6 | 18 | 8 |
Macquarie Climate Inv Debt. | 58% | 95 | 163 | \u00a0 | 4 | 1 |
Bentall Green Oak Europe Secured Lending III SLP | 33% | 92 | 413 | 129 | 13 | 8 |
Octopus Commercial Real Estate Debt Fund III LP | 46% | 90 | 219 | 21 | 13 | 3 |
Prime Ventures V C.V. | 18% | 89 | 501 | \u00a0 | -12 | 5 |
DPE Deutschland III (Parallel) GmbH & Co | 17% | 81 | 676 | 201 | 214 | 2 |
CBRE UK Property Fund PAIF | 8% | 80 | 1,035 | 14 | 16 | -5 |
Delta Mainlog Holding GmbH & Co. KG | 50% | 76 | 154 | 3 | 8 | 2 |
Boccaccio - Closed-end Real Estate Mutual Investment Fund | 50% | 75 | 199 | 48 | 15 | 4 |
Hayfin TS Fund | 79% | 72 | 97 | 6 | 6 | 1 |
NL Boompjes Property 5 C.V. | 50% | 66 | 132 | 1 | 18 | 1 |
Parcom Buy-Out Fund V CV | 21% | 63 | 359 | 65 | 64 | 5 |
CBRE Property Fund Central and Eastern Europe FGR | 50% | 61 | 181 | 59 | 26 | 9 |
Parquest Capital II B FPCI | 25% | 58 | 267 | 38 | 5 | 4 |
Dutch Climate Action Fund Equity Vintage 1 C.V. | 97% | 54 | 55 | \u00a0 | \u00a0 | 1 |
Other | \u00a0 | 556 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investments in associates and joint ventures | \u00a0 | 7,036 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments in associates and joint ventures \u2013 opening balance | 7,036 | 6,231 |
Additions | 1,140 | 706 |
Transfers from (to) investments at fair value through OCI | \u00a0 | -3 |
Share in changes in equity (revaluations) | 1 | \u00a0 |
Share of result | 520 | 579 |
Dividends received | -377 | -250 |
Disposals | -259 | -244 |
Foreign currency exchange differences | 13 | 17 |
Investments in associates and joint ventures \u2013 closing balance | 8,074 | 7,036 |
NN\u2019s activities involve transactions with structured entities in the normal course of business. A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed through contractual arrangements. NN\u2019s involvement in these entities varies and includes both debt financing and equity financing of these entities as well as other relationships. Based on its accounting policies, as disclosed in Note 1 Accounting policies, NN establishes whether these involvements result in no significant influence, significant influence, joint control or control over the structured entity.
The structured entities over which NN can exercise control are consolidated. NN may provide support to these consolidated structured entities as and when appropriate, however this is fully reflected in the Consolidated annual accounts of NN as all assets and liabilities of these entities are included in the Consolidated balance sheet and off-balance sheet commitments are disclosed.
NNs activities involving structured entities are explained below in the following categories:
Consolidated NN originated liquidity management securitisation and covered bond programmes.
Investments \u2013 Third-party managed structured entities.
Mortgage loans issued are partly funded by issuing residential mortgage-backed instruments under NN\u2019s Dutch residential mortgage-backed instruments programmes and covered bonds. In the second half of 2023, both Hypenn RMBS I and Hypenn RMBS VII were fully redeemed early. The mortgage loans transferred to these securitisation vehicles continue to be recognised in the balance sheet of NN.
Total amounts of mortgage loans securitised (notes issued) and notes held by third parties as at 31 December is as follows:
| \u00a0 | Maturity year | Related mortgage loans | RMBS issued and held by third parties | ||
|---|---|---|---|---|---|
| \u00a0 | \u00a0 | 2025 | 2024 | 2025 | 2024 |
Soft Bullet Covered Bonds | 2025-2041 | 8,388 | 8,535 | 7,581 | 7,327 |
Total | \u00a0 | 8,388 | 8,535 | 7,581 | 7,327 |
NN companies hold the remaining notes.
As part of its investment activities, NN invests both in debt and equity instruments of structured entities originated by third parties.
Most of the investments in debt instruments of structured entities relate to asset-backed instruments (ABS), classified as Investments at fair value through Other Comprehensive Income. Reference is made to Note 3 Investments at fair value through Other Comprehensive Income where the ABS portfolio is disclosed.
The majority of the investments in equity instruments of structured entities relate to interests in investment funds that are not originated or managed by NN. Reference is made to Note 5 Investments at fair value through profit or loss in which these investments are reported in the line debt instruments for risk of company.
NN has significant influence for some of its real estate investment funds as disclosed in Note 7 Investments in associates and joint ventures.
The maximum exposure to loss for NN is equal to the reported carrying value of the investment recognised in the balance sheet of NN.
Associates are entities over which NN has significant influence but not control. Joint ventures are entities in which NN has joint control.
Associates and joint ventures are initially recognised at cost (including goodwill) and subsequently accounted for using the equity method of accounting. Subsequently, NN\u2019s share of profits or losses is recognised in the profit and loss account and its share of changes in reserves is recognised in Other Comprehensive Income (equity). The cumulative changes are adjusted against the carrying value of the investment. When NN\u2019s share of losses in an associate or joint venture equals or exceeds the book value of the associate or joint venture, NN does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
Unrealised gains and losses on transactions between NN and its associates and joint ventures are eliminated to the extent of NN\u2019s interest. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies of NN. The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
For interests in investment entities the existence of significant influence is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager.
Associates include interests in real estate funds and private equity funds. The underlying assets of both the real estate and the private equity funds are measured at fair value through profit or loss. The fair value of underlying real estate in real estate funds is determined as included in Note 6 Investments in real estate.
The fair value of underlying private equity investments in private equity funds is generally based on a forward-looking market approach. This approach uses a combination of company financials and quoted market multiples. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and by reference to market valuations for similar entities quoted in an active market. Valuations of private equity investments are mainly based on an \u2018adjusted multiple of earnings\u2019 methodology on the following basis:
Earnings: reported earnings are adjusted for non-recurring items, such as restructuring expenses, for significant corporate actions and, in exceptional cases, for run-rate adjustments to arrive at maintainable earnings. The most common measure is earnings before interest, tax, depreciation and amortisation (EBITDA). Earnings used are usually management forecasts for the current year, unless data from management accounts for the 12 months preceding the reporting period or the latest audited annual accounts provide a more reliable estimate of maintainable earnings.
Earnings multiples: earnings multiples are derived from comparable listed companies or relevant market transaction multiples for companies in the same industry and, where possible, with a similar business model and profile in terms of size, products, services and customers, growth rates and geographic focus.
Adjustments are made for differences in the relative performance in the group of comparable companies.
Adjustments: a marketability or liquidity discount is applied based on factors such as alignment with management and other investors and NN\u2019s investment rights in the deal structure.
2025 | Interest held | Balance sheet value | Total assets | Total liabilities | Total income | Total expenses |
|---|---|---|---|---|---|---|
Vesteda Residential Fund FGR, The Netherlands | 24% | 1,895 | 10,419 | 2,575 | 1,058 | 208 |
Macquarie European Infrastructure Debt Fund | 44% | 372 | 850 | 11 | 38 | 12 |
Hayfin Amber GP S.A R.L. | 100% | 368 | 731 | 363 | 24 | 10 |
Nestar Residencial S.I.I. S.A. | 27% | 310 | 1,787 | 631 | 144 | 67 |
Rivage Euro Debt infrastructure 3 | 34% | 301 | 884 | 2 | 34 | 20 |
CBRE Dutch Residential Fund I FGR | 9% | 265 | 3,047 | 140 | 307 | 44 |
CBRE Retail Property Fund Iberica L.P. | 50% | 256 | 1,031 | 519 | 121 | 37 |
Rivage Priv. Debt \u2013 Fund for Infrastructure Climate Solutions | 100% | 237 | 238 | \u00a0 | 19 | 4 |
CBRE Dutch Office Fund FGR | 19% | 227 | 1,895 | 673 | 103 | 76 |
Rivage Euro Debt Infrastructure High return 2 | 34% | 220 | 725 | 69 | 52 | 11 |
Ardstone Residential Income Fund | 21% | 208 | 1,350 | 368 | 82 | 30 |
Bentall Green Oak Europe Secured Lending III SLP | 33% | 207 | 667 | 32 | 39 | 9 |
Rivage Hopitaux Publics Euro | 34% | 193 | 564 | 4 | 20 | 11 |
Macquarie Climate Inv Debt. | 100% | 189 | 249 | 61 | 17 | 11 |
Macquarie Direct Lending Europe SCSp | 90% | 188 | 353 | 144 | 12 | 16 |
NRP Nordic Logistic Fund SA | 42% | 187 | 434 | -10 | 36 | 5 |
Healthcare Activos SOCIMI S.A. | 38% | 185 | 922 | 434 | 61 | 26 |
Dutch Urban Living Venture FGR | 49% | 173 | 503 | 153 | 52 | 9 |
Dutch Student and Young Professional Housing Fund FGR | 49% | 153 | 390 | 81 | 42 | 6 |
AXA CITRUS CRE Enhanced SMA | 100% | 124 | 124 | \u00a0 | 1 | \u00a0 |
Allee center Kft | 50% | 121 | 261 | 20 | 31 | 8 |
CBRE Dutch Retail Fund FGR | 22% | 116 | 751 | 227 | 22 | 27 |
Dutch Climate Action Fund Equity Vintage 1 C.V. | 97% | 100 | 103 | 0 | \u00a0 | -2 |
Fiumaranuova s.r.l. | 50% | 98 | 206 | 11 | 36 | 24 |
Hayfin TS Fund | 79% | 97 | 336 | 214 | 8 | \u00a0 |
DPE Deutschland III (Parallel) GmbH & Co | 17% | 90 | 647 | 123 | 169 | 3 |
Octopus Commercial Real Estate Debt Fund III LP | 46% | 88 | 192 | \u00a0 | 27 | 17 |
Delta Mainlog Holding GmbH & Co. KG | 50% | 77 | 155 | 1 | 12 | 2 |
Boccaccio - Closed-end Real Estate Mutual Investment Fund | 50% | 75 | 200 | 49 | -11 | 5 |
NL Boompjes Property 5 C.V. | 50% | 69 | 138 | 1 | 12 | 2 |
CRE Senior Debt SCA SICAV-RAIF - CRE Senior 17 | 40% | 66 | 179 | 14 | 2 | \u00a0 |
CBRE Property Fund Central and Eastern Europe FGR | 50% | 64 | 189 | 62 | 27 | 9 |
Prime Ventures V C.V. | 18% | 62 | 345 | \u00a0 | 46 | 5 |
ION Residential Platform NV | 48% | 52 | 177 | 68 | 5 | 4 |
Other | \u00a0 | 641 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investments in associates and joint ventures | \u00a0 | 8,074 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
The above investments in associates and joint ventures mainly consist of non-listed investment entities investing in real estate and private equity. Therefore the assets and liabilities are mainly non-current.
Significant influence exists for certain associates in which the interest held is below 20%, based on the combination of NN\u2019s financial interest for own risk and other arrangements, such as participation in the relevant boards.
NN holds associates over which it cannot exercise control despite holding more than 50% of the share capital. For this reason, these are classified as associates and are not consolidated.
Other includes EUR 571 million (2024: EUR 474 million) of associates and joint ventures with an individual balance sheet value of less than EUR 50 million and EUR 70 million (2024: EUR 82 million) of receivables from associates and joint ventures.
The amounts presented in the table above could differ from the individual annual accounts of the associates due to the fact that the individual amounts have been brought in line with NN\u2019s accounting principles.
The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
The associates and joint ventures of NN are subject to legal and regulatory restrictions regarding the amount of dividends that can be paid to NN. These restrictions are, for example, dependent on the laws in the country of incorporation for declaring dividends or as a result of minimum capital requirements imposed by industry regulators in the countries in which the associates and joint ventures operate. In addition, the associates and joint ventures also consider other factors in determining the appropriate levels of equity needed. These factors and limitations include, but are not limited to, rating agency and regulatory views, which can change over time.
2024 | Interest held | Balance sheet value | Total assets | Total liabilities | Total income | Total expenses |
|---|---|---|---|---|---|---|
Vesteda Residential Fund FGR, The Netherlands | 24% | 1,757 | 10,050 | 2,779 | 1,335 | 206 |
Macquarie European Infrastructure Debt Fund | 47% | 357 | 756 | 1 | 64 | 2 |
Rivage Euro Debt infrastructure 3 | 34% | 317 | 927 | \u00a0 | 55 | 7 |
Nestar Residencial S.I.I. S.A. | 23% | 268 | 1,762 | 606 | 105 | 67 |
CBRE Dutch Office Fund FGR | 19% | 263 | 2,129 | 715 | 79 | 81 |
Hayfin Amber GP S.A R.L. | 100% | 253 | 347 | 94 | 22 | 3 |
CBRE Dutch Residential Fund I FGR | 8% | 250 | 3,161 | 140 | 340 | 39 |
CBRE Retail Property Fund Iberica L.P. | 50% | 225 | 988 | 537 | 109 | 36 |
Rivage Hopitaux Publics Euro | 34% | 207 | 600 | \u00a0 | 17 | 6 |
Ardstone Residential Income Fund | 29% | 203 | 1,068 | 363 | 33 | 28 |
NRP Nordic Logistic Fund SA | 42% | 187 | 474 | 30 | 22 | 5 |
Healthcare Activos SOCIMI S.A. | 38% | 177 | 883 | 416 | 35 | 26 |
Rivage Priv. Debt \u2013 Fund for Infrastructure Climate Solutions | 100% | 168 | 169 | 1 | 14 | 2 |
Dutch Urban Living Venture FGR | 49% | 160 | 478 | 155 | 66 | 12 |
Rivage Euro Debt Infrastructure High return 2 | 34% | 153 | 454 | \u00a0 | 37 | 8 |
Dutch Student and Young Professional Housing Fund FGR | 49% | 143 | 370 | 81 | 45 | 8 |
CBRE Dutch Retail Fund FGR | 22% | 126 | 790 | 223 | 11 | 25 |
Allee center Kft | 50% | 116 | 251 | 19 | 20 | 12 |
Fiumaranuova s.r.l. | 50% | 98 | 202 | 6 | 18 | 8 |
Macquarie Climate Inv Debt. | 58% | 95 | 163 | \u00a0 | 4 | 1 |
Bentall Green Oak Europe Secured Lending III SLP | 33% | 92 | 413 | 129 | 13 | 8 |
Octopus Commercial Real Estate Debt Fund III LP | 46% | 90 | 219 | 21 | 13 | 3 |
Prime Ventures V C.V. | 18% | 89 | 501 | \u00a0 | -12 | 5 |
DPE Deutschland III (Parallel) GmbH & Co | 17% | 81 | 676 | 201 | 214 | 2 |
CBRE UK Property Fund PAIF | 8% | 80 | 1,035 | 14 | 16 | -5 |
Delta Mainlog Holding GmbH & Co. KG | 50% | 76 | 154 | 3 | 8 | 2 |
Boccaccio - Closed-end Real Estate Mutual Investment Fund | 50% | 75 | 199 | 48 | 15 | 4 |
Hayfin TS Fund | 79% | 72 | 97 | 6 | 6 | 1 |
NL Boompjes Property 5 C.V. | 50% | 66 | 132 | 1 | 18 | 1 |
Parcom Buy-Out Fund V CV | 21% | 63 | 359 | 65 | 64 | 5 |
CBRE Property Fund Central and Eastern Europe FGR | 50% | 61 | 181 | 59 | 26 | 9 |
Parquest Capital II B FPCI | 25% | 58 | 267 | 38 | 5 | 4 |
Dutch Climate Action Fund Equity Vintage 1 C.V. | 97% | 54 | 55 | \u00a0 | \u00a0 | 1 |
Other | \u00a0 | 556 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investments in associates and joint ventures | \u00a0 | 7,036 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments in associates and joint ventures \u2013 opening balance | 7,036 | 6,231 |
Additions | 1,140 | 706 |
Transfers from (to) investments at fair value through OCI | \u00a0 | -3 |
Share in changes in equity (revaluations) | 1 | \u00a0 |
Share of result | 520 | 579 |
Dividends received | -377 | -250 |
Disposals | -259 | -244 |
Foreign currency exchange differences | 13 | 17 |
Investments in associates and joint ventures \u2013 closing balance | 8,074 | 7,036 |
Associates are entities over which NN has significant influence but not control. Joint ventures are entities in which NN has joint control.
Associates and joint ventures are initially recognised at cost (including goodwill) and subsequently accounted for using the equity method of accounting. Subsequently, NN\u2019s share of profits or losses is recognised in the profit and loss account and its share of changes in reserves is recognised in Other Comprehensive Income (equity). The cumulative changes are adjusted against the carrying value of the investment. When NN\u2019s share of losses in an associate or joint venture equals or exceeds the book value of the associate or joint venture, NN does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
Unrealised gains and losses on transactions between NN and its associates and joint ventures are eliminated to the extent of NN\u2019s interest. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies of NN. The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
For interests in investment entities the existence of significant influence is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager.
Associates include interests in real estate funds and private equity funds. The underlying assets of both the real estate and the private equity funds are measured at fair value through profit or loss. The fair value of underlying real estate in real estate funds is determined as included in Note 6 Investments in real estate.
The fair value of underlying private equity investments in private equity funds is generally based on a forward-looking market approach. This approach uses a combination of company financials and quoted market multiples. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and by reference to market valuations for similar entities quoted in an active market. Valuations of private equity investments are mainly based on an \u2018adjusted multiple of earnings\u2019 methodology on the following basis:
Earnings: reported earnings are adjusted for non-recurring items, such as restructuring expenses, for significant corporate actions and, in exceptional cases, for run-rate adjustments to arrive at maintainable earnings. The most common measure is earnings before interest, tax, depreciation and amortisation (EBITDA). Earnings used are usually management forecasts for the current year, unless data from management accounts for the 12 months preceding the reporting period or the latest audited annual accounts provide a more reliable estimate of maintainable earnings.
Earnings multiples: earnings multiples are derived from comparable listed companies or relevant market transaction multiples for companies in the same industry and, where possible, with a similar business model and profile in terms of size, products, services and customers, growth rates and geographic focus.
Adjustments are made for differences in the relative performance in the group of comparable companies.
Adjustments: a marketability or liquidity discount is applied based on factors such as alignment with management and other investors and NN\u2019s investment rights in the deal structure.
2025 | Interest held | Balance sheet value | Total assets | Total liabilities | Total income | Total expenses |
|---|---|---|---|---|---|---|
Vesteda Residential Fund FGR, The Netherlands | 24% | 1,895 | 10,419 | 2,575 | 1,058 | 208 |
Macquarie European Infrastructure Debt Fund | 44% | 372 | 850 | 11 | 38 | 12 |
Hayfin Amber GP S.A R.L. | 100% | 368 | 731 | 363 | 24 | 10 |
Nestar Residencial S.I.I. S.A. | 27% | 310 | 1,787 | 631 | 144 | 67 |
Rivage Euro Debt infrastructure 3 | 34% | 301 | 884 | 2 | 34 | 20 |
CBRE Dutch Residential Fund I FGR | 9% | 265 | 3,047 | 140 | 307 | 44 |
CBRE Retail Property Fund Iberica L.P. | 50% | 256 | 1,031 | 519 | 121 | 37 |
Rivage Priv. Debt \u2013 Fund for Infrastructure Climate Solutions | 100% | 237 | 238 | \u00a0 | 19 | 4 |
CBRE Dutch Office Fund FGR | 19% | 227 | 1,895 | 673 | 103 | 76 |
Rivage Euro Debt Infrastructure High return 2 | 34% | 220 | 725 | 69 | 52 | 11 |
Ardstone Residential Income Fund | 21% | 208 | 1,350 | 368 | 82 | 30 |
Bentall Green Oak Europe Secured Lending III SLP | 33% | 207 | 667 | 32 | 39 | 9 |
Rivage Hopitaux Publics Euro | 34% | 193 | 564 | 4 | 20 | 11 |
Macquarie Climate Inv Debt. | 100% | 189 | 249 | 61 | 17 | 11 |
Macquarie Direct Lending Europe SCSp | 90% | 188 | 353 | 144 | 12 | 16 |
NRP Nordic Logistic Fund SA | 42% | 187 | 434 | -10 | 36 | 5 |
Healthcare Activos SOCIMI S.A. | 38% | 185 | 922 | 434 | 61 | 26 |
Dutch Urban Living Venture FGR | 49% | 173 | 503 | 153 | 52 | 9 |
Dutch Student and Young Professional Housing Fund FGR | 49% | 153 | 390 | 81 | 42 | 6 |
AXA CITRUS CRE Enhanced SMA | 100% | 124 | 124 | \u00a0 | 1 | \u00a0 |
Allee center Kft | 50% | 121 | 261 | 20 | 31 | 8 |
CBRE Dutch Retail Fund FGR | 22% | 116 | 751 | 227 | 22 | 27 |
Dutch Climate Action Fund Equity Vintage 1 C.V. | 97% | 100 | 103 | 0 | \u00a0 | -2 |
Fiumaranuova s.r.l. | 50% | 98 | 206 | 11 | 36 | 24 |
Hayfin TS Fund | 79% | 97 | 336 | 214 | 8 | \u00a0 |
DPE Deutschland III (Parallel) GmbH & Co | 17% | 90 | 647 | 123 | 169 | 3 |
Octopus Commercial Real Estate Debt Fund III LP | 46% | 88 | 192 | \u00a0 | 27 | 17 |
Delta Mainlog Holding GmbH & Co. KG | 50% | 77 | 155 | 1 | 12 | 2 |
Boccaccio - Closed-end Real Estate Mutual Investment Fund | 50% | 75 | 200 | 49 | -11 | 5 |
NL Boompjes Property 5 C.V. | 50% | 69 | 138 | 1 | 12 | 2 |
CRE Senior Debt SCA SICAV-RAIF - CRE Senior 17 | 40% | 66 | 179 | 14 | 2 | \u00a0 |
CBRE Property Fund Central and Eastern Europe FGR | 50% | 64 | 189 | 62 | 27 | 9 |
Prime Ventures V C.V. | 18% | 62 | 345 | \u00a0 | 46 | 5 |
ION Residential Platform NV | 48% | 52 | 177 | 68 | 5 | 4 |
Other | \u00a0 | 641 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investments in associates and joint ventures | \u00a0 | 8,074 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
The above investments in associates and joint ventures mainly consist of non-listed investment entities investing in real estate and private equity. Therefore the assets and liabilities are mainly non-current.
Significant influence exists for certain associates in which the interest held is below 20%, based on the combination of NN\u2019s financial interest for own risk and other arrangements, such as participation in the relevant boards.
NN holds associates over which it cannot exercise control despite holding more than 50% of the share capital. For this reason, these are classified as associates and are not consolidated.
Other includes EUR 571 million (2024: EUR 474 million) of associates and joint ventures with an individual balance sheet value of less than EUR 50 million and EUR 70 million (2024: EUR 82 million) of receivables from associates and joint ventures.
The amounts presented in the table above could differ from the individual annual accounts of the associates due to the fact that the individual amounts have been brought in line with NN\u2019s accounting principles.
The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
The associates and joint ventures of NN are subject to legal and regulatory restrictions regarding the amount of dividends that can be paid to NN. These restrictions are, for example, dependent on the laws in the country of incorporation for declaring dividends or as a result of minimum capital requirements imposed by industry regulators in the countries in which the associates and joint ventures operate. In addition, the associates and joint ventures also consider other factors in determining the appropriate levels of equity needed. These factors and limitations include, but are not limited to, rating agency and regulatory views, which can change over time.
2024 | Interest held | Balance sheet value | Total assets | Total liabilities | Total income | Total expenses |
|---|---|---|---|---|---|---|
Vesteda Residential Fund FGR, The Netherlands | 24% | 1,757 | 10,050 | 2,779 | 1,335 | 206 |
Macquarie European Infrastructure Debt Fund | 47% | 357 | 756 | 1 | 64 | 2 |
Rivage Euro Debt infrastructure 3 | 34% | 317 | 927 | \u00a0 | 55 | 7 |
Nestar Residencial S.I.I. S.A. | 23% | 268 | 1,762 | 606 | 105 | 67 |
CBRE Dutch Office Fund FGR | 19% | 263 | 2,129 | 715 | 79 | 81 |
Hayfin Amber GP S.A R.L. | 100% | 253 | 347 | 94 | 22 | 3 |
CBRE Dutch Residential Fund I FGR | 8% | 250 | 3,161 | 140 | 340 | 39 |
CBRE Retail Property Fund Iberica L.P. | 50% | 225 | 988 | 537 | 109 | 36 |
Rivage Hopitaux Publics Euro | 34% | 207 | 600 | \u00a0 | 17 | 6 |
Ardstone Residential Income Fund | 29% | 203 | 1,068 | 363 | 33 | 28 |
NRP Nordic Logistic Fund SA | 42% | 187 | 474 | 30 | 22 | 5 |
Healthcare Activos SOCIMI S.A. | 38% | 177 | 883 | 416 | 35 | 26 |
Rivage Priv. Debt \u2013 Fund for Infrastructure Climate Solutions | 100% | 168 | 169 | 1 | 14 | 2 |
Dutch Urban Living Venture FGR | 49% | 160 | 478 | 155 | 66 | 12 |
Rivage Euro Debt Infrastructure High return 2 | 34% | 153 | 454 | \u00a0 | 37 | 8 |
Dutch Student and Young Professional Housing Fund FGR | 49% | 143 | 370 | 81 | 45 | 8 |
CBRE Dutch Retail Fund FGR | 22% | 126 | 790 | 223 | 11 | 25 |
Allee center Kft | 50% | 116 | 251 | 19 | 20 | 12 |
Fiumaranuova s.r.l. | 50% | 98 | 202 | 6 | 18 | 8 |
Macquarie Climate Inv Debt. | 58% | 95 | 163 | \u00a0 | 4 | 1 |
Bentall Green Oak Europe Secured Lending III SLP | 33% | 92 | 413 | 129 | 13 | 8 |
Octopus Commercial Real Estate Debt Fund III LP | 46% | 90 | 219 | 21 | 13 | 3 |
Prime Ventures V C.V. | 18% | 89 | 501 | \u00a0 | -12 | 5 |
DPE Deutschland III (Parallel) GmbH & Co | 17% | 81 | 676 | 201 | 214 | 2 |
CBRE UK Property Fund PAIF | 8% | 80 | 1,035 | 14 | 16 | -5 |
Delta Mainlog Holding GmbH & Co. KG | 50% | 76 | 154 | 3 | 8 | 2 |
Boccaccio - Closed-end Real Estate Mutual Investment Fund | 50% | 75 | 199 | 48 | 15 | 4 |
Hayfin TS Fund | 79% | 72 | 97 | 6 | 6 | 1 |
NL Boompjes Property 5 C.V. | 50% | 66 | 132 | 1 | 18 | 1 |
Parcom Buy-Out Fund V CV | 21% | 63 | 359 | 65 | 64 | 5 |
CBRE Property Fund Central and Eastern Europe FGR | 50% | 61 | 181 | 59 | 26 | 9 |
Parquest Capital II B FPCI | 25% | 58 | 267 | 38 | 5 | 4 |
Dutch Climate Action Fund Equity Vintage 1 C.V. | 97% | 54 | 55 | \u00a0 | \u00a0 | 1 |
Other | \u00a0 | 556 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investments in associates and joint ventures | \u00a0 | 7,036 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments in associates and joint ventures \u2013 opening balance | 7,036 | 6,231 |
Additions | 1,140 | 706 |
Transfers from (to) investments at fair value through OCI | \u00a0 | -3 |
Share in changes in equity (revaluations) | 1 | \u00a0 |
Share of result | 520 | 579 |
Dividends received | -377 | -250 |
Disposals | -259 | -244 |
Foreign currency exchange differences | 13 | 17 |
Investments in associates and joint ventures \u2013 closing balance | 8,074 | 7,036 |
Associates are entities over which NN has significant influence but not control. Joint ventures are entities in which NN has joint control.
Associates and joint ventures are initially recognised at cost (including goodwill) and subsequently accounted for using the equity method of accounting. Subsequently, NN\u2019s share of profits or losses is recognised in the profit and loss account and its share of changes in reserves is recognised in Other Comprehensive Income (equity). The cumulative changes are adjusted against the carrying value of the investment. When NN\u2019s share of losses in an associate or joint venture equals or exceeds the book value of the associate or joint venture, NN does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
Unrealised gains and losses on transactions between NN and its associates and joint ventures are eliminated to the extent of NN\u2019s interest. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies of NN. The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
For interests in investment entities the existence of significant influence is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager.
Associates include interests in real estate funds and private equity funds. The underlying assets of both the real estate and the private equity funds are measured at fair value through profit or loss. The fair value of underlying real estate in real estate funds is determined as included in Note 6 Investments in real estate.
The fair value of underlying private equity investments in private equity funds is generally based on a forward-looking market approach. This approach uses a combination of company financials and quoted market multiples. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and by reference to market valuations for similar entities quoted in an active market. Valuations of private equity investments are mainly based on an \u2018adjusted multiple of earnings\u2019 methodology on the following basis:
Earnings: reported earnings are adjusted for non-recurring items, such as restructuring expenses, for significant corporate actions and, in exceptional cases, for run-rate adjustments to arrive at maintainable earnings. The most common measure is earnings before interest, tax, depreciation and amortisation (EBITDA). Earnings used are usually management forecasts for the current year, unless data from management accounts for the 12 months preceding the reporting period or the latest audited annual accounts provide a more reliable estimate of maintainable earnings.
Earnings multiples: earnings multiples are derived from comparable listed companies or relevant market transaction multiples for companies in the same industry and, where possible, with a similar business model and profile in terms of size, products, services and customers, growth rates and geographic focus.
Adjustments are made for differences in the relative performance in the group of comparable companies.
Adjustments: a marketability or liquidity discount is applied based on factors such as alignment with management and other investors and NN\u2019s investment rights in the deal structure.
2025 | Interest held | Balance sheet value | Total assets | Total liabilities | Total income | Total expenses |
|---|---|---|---|---|---|---|
Vesteda Residential Fund FGR, The Netherlands | 24% | 1,895 | 10,419 | 2,575 | 1,058 | 208 |
Macquarie European Infrastructure Debt Fund | 44% | 372 | 850 | 11 | 38 | 12 |
Hayfin Amber GP S.A R.L. | 100% | 368 | 731 | 363 | 24 | 10 |
Nestar Residencial S.I.I. S.A. | 27% | 310 | 1,787 | 631 | 144 | 67 |
Rivage Euro Debt infrastructure 3 | 34% | 301 | 884 | 2 | 34 | 20 |
CBRE Dutch Residential Fund I FGR | 9% | 265 | 3,047 | 140 | 307 | 44 |
CBRE Retail Property Fund Iberica L.P. | 50% | 256 | 1,031 | 519 | 121 | 37 |
Rivage Priv. Debt \u2013 Fund for Infrastructure Climate Solutions | 100% | 237 | 238 | \u00a0 | 19 | 4 |
CBRE Dutch Office Fund FGR | 19% | 227 | 1,895 | 673 | 103 | 76 |
Rivage Euro Debt Infrastructure High return 2 | 34% | 220 | 725 | 69 | 52 | 11 |
Ardstone Residential Income Fund | 21% | 208 | 1,350 | 368 | 82 | 30 |
Bentall Green Oak Europe Secured Lending III SLP | 33% | 207 | 667 | 32 | 39 | 9 |
Rivage Hopitaux Publics Euro | 34% | 193 | 564 | 4 | 20 | 11 |
Macquarie Climate Inv Debt. | 100% | 189 | 249 | 61 | 17 | 11 |
Macquarie Direct Lending Europe SCSp | 90% | 188 | 353 | 144 | 12 | 16 |
NRP Nordic Logistic Fund SA | 42% | 187 | 434 | -10 | 36 | 5 |
Healthcare Activos SOCIMI S.A. | 38% | 185 | 922 | 434 | 61 | 26 |
Dutch Urban Living Venture FGR | 49% | 173 | 503 | 153 | 52 | 9 |
Dutch Student and Young Professional Housing Fund FGR | 49% | 153 | 390 | 81 | 42 | 6 |
AXA CITRUS CRE Enhanced SMA | 100% | 124 | 124 | \u00a0 | 1 | \u00a0 |
Allee center Kft | 50% | 121 | 261 | 20 | 31 | 8 |
CBRE Dutch Retail Fund FGR | 22% | 116 | 751 | 227 | 22 | 27 |
Dutch Climate Action Fund Equity Vintage 1 C.V. | 97% | 100 | 103 | 0 | \u00a0 | -2 |
Fiumaranuova s.r.l. | 50% | 98 | 206 | 11 | 36 | 24 |
Hayfin TS Fund | 79% | 97 | 336 | 214 | 8 | \u00a0 |
DPE Deutschland III (Parallel) GmbH & Co | 17% | 90 | 647 | 123 | 169 | 3 |
Octopus Commercial Real Estate Debt Fund III LP | 46% | 88 | 192 | \u00a0 | 27 | 17 |
Delta Mainlog Holding GmbH & Co. KG | 50% | 77 | 155 | 1 | 12 | 2 |
Boccaccio - Closed-end Real Estate Mutual Investment Fund | 50% | 75 | 200 | 49 | -11 | 5 |
NL Boompjes Property 5 C.V. | 50% | 69 | 138 | 1 | 12 | 2 |
CRE Senior Debt SCA SICAV-RAIF - CRE Senior 17 | 40% | 66 | 179 | 14 | 2 | \u00a0 |
CBRE Property Fund Central and Eastern Europe FGR | 50% | 64 | 189 | 62 | 27 | 9 |
Prime Ventures V C.V. | 18% | 62 | 345 | \u00a0 | 46 | 5 |
ION Residential Platform NV | 48% | 52 | 177 | 68 | 5 | 4 |
Other | \u00a0 | 641 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investments in associates and joint ventures | \u00a0 | 8,074 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
The above investments in associates and joint ventures mainly consist of non-listed investment entities investing in real estate and private equity. Therefore the assets and liabilities are mainly non-current.
Significant influence exists for certain associates in which the interest held is below 20%, based on the combination of NN\u2019s financial interest for own risk and other arrangements, such as participation in the relevant boards.
NN holds associates over which it cannot exercise control despite holding more than 50% of the share capital. For this reason, these are classified as associates and are not consolidated.
Other includes EUR 571 million (2024: EUR 474 million) of associates and joint ventures with an individual balance sheet value of less than EUR 50 million and EUR 70 million (2024: EUR 82 million) of receivables from associates and joint ventures.
The amounts presented in the table above could differ from the individual annual accounts of the associates due to the fact that the individual amounts have been brought in line with NN\u2019s accounting principles.
The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
The associates and joint ventures of NN are subject to legal and regulatory restrictions regarding the amount of dividends that can be paid to NN. These restrictions are, for example, dependent on the laws in the country of incorporation for declaring dividends or as a result of minimum capital requirements imposed by industry regulators in the countries in which the associates and joint ventures operate. In addition, the associates and joint ventures also consider other factors in determining the appropriate levels of equity needed. These factors and limitations include, but are not limited to, rating agency and regulatory views, which can change over time.
2024 | Interest held | Balance sheet value | Total assets | Total liabilities | Total income | Total expenses |
|---|---|---|---|---|---|---|
Vesteda Residential Fund FGR, The Netherlands | 24% | 1,757 | 10,050 | 2,779 | 1,335 | 206 |
Macquarie European Infrastructure Debt Fund | 47% | 357 | 756 | 1 | 64 | 2 |
Rivage Euro Debt infrastructure 3 | 34% | 317 | 927 | \u00a0 | 55 | 7 |
Nestar Residencial S.I.I. S.A. | 23% | 268 | 1,762 | 606 | 105 | 67 |
CBRE Dutch Office Fund FGR | 19% | 263 | 2,129 | 715 | 79 | 81 |
Hayfin Amber GP S.A R.L. | 100% | 253 | 347 | 94 | 22 | 3 |
CBRE Dutch Residential Fund I FGR | 8% | 250 | 3,161 | 140 | 340 | 39 |
CBRE Retail Property Fund Iberica L.P. | 50% | 225 | 988 | 537 | 109 | 36 |
Rivage Hopitaux Publics Euro | 34% | 207 | 600 | \u00a0 | 17 | 6 |
Ardstone Residential Income Fund | 29% | 203 | 1,068 | 363 | 33 | 28 |
NRP Nordic Logistic Fund SA | 42% | 187 | 474 | 30 | 22 | 5 |
Healthcare Activos SOCIMI S.A. | 38% | 177 | 883 | 416 | 35 | 26 |
Rivage Priv. Debt \u2013 Fund for Infrastructure Climate Solutions | 100% | 168 | 169 | 1 | 14 | 2 |
Dutch Urban Living Venture FGR | 49% | 160 | 478 | 155 | 66 | 12 |
Rivage Euro Debt Infrastructure High return 2 | 34% | 153 | 454 | \u00a0 | 37 | 8 |
Dutch Student and Young Professional Housing Fund FGR | 49% | 143 | 370 | 81 | 45 | 8 |
CBRE Dutch Retail Fund FGR | 22% | 126 | 790 | 223 | 11 | 25 |
Allee center Kft | 50% | 116 | 251 | 19 | 20 | 12 |
Fiumaranuova s.r.l. | 50% | 98 | 202 | 6 | 18 | 8 |
Macquarie Climate Inv Debt. | 58% | 95 | 163 | \u00a0 | 4 | 1 |
Bentall Green Oak Europe Secured Lending III SLP | 33% | 92 | 413 | 129 | 13 | 8 |
Octopus Commercial Real Estate Debt Fund III LP | 46% | 90 | 219 | 21 | 13 | 3 |
Prime Ventures V C.V. | 18% | 89 | 501 | \u00a0 | -12 | 5 |
DPE Deutschland III (Parallel) GmbH & Co | 17% | 81 | 676 | 201 | 214 | 2 |
CBRE UK Property Fund PAIF | 8% | 80 | 1,035 | 14 | 16 | -5 |
Delta Mainlog Holding GmbH & Co. KG | 50% | 76 | 154 | 3 | 8 | 2 |
Boccaccio - Closed-end Real Estate Mutual Investment Fund | 50% | 75 | 199 | 48 | 15 | 4 |
Hayfin TS Fund | 79% | 72 | 97 | 6 | 6 | 1 |
NL Boompjes Property 5 C.V. | 50% | 66 | 132 | 1 | 18 | 1 |
Parcom Buy-Out Fund V CV | 21% | 63 | 359 | 65 | 64 | 5 |
CBRE Property Fund Central and Eastern Europe FGR | 50% | 61 | 181 | 59 | 26 | 9 |
Parquest Capital II B FPCI | 25% | 58 | 267 | 38 | 5 | 4 |
Dutch Climate Action Fund Equity Vintage 1 C.V. | 97% | 54 | 55 | \u00a0 | \u00a0 | 1 |
Other | \u00a0 | 556 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investments in associates and joint ventures | \u00a0 | 7,036 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments in associates and joint ventures \u2013 opening balance | 7,036 | 6,231 |
Additions | 1,140 | 706 |
Transfers from (to) investments at fair value through OCI | \u00a0 | -3 |
Share in changes in equity (revaluations) | 1 | \u00a0 |
Share of result | 520 | 579 |
Dividends received | -377 | -250 |
Disposals | -259 | -244 |
Foreign currency exchange differences | 13 | 17 |
Investments in associates and joint ventures \u2013 closing balance | 8,074 | 7,036 |
Associates are entities over which NN has significant influence but not control. Joint ventures are entities in which NN has joint control.
Associates and joint ventures are initially recognised at cost (including goodwill) and subsequently accounted for using the equity method of accounting. Subsequently, NN\u2019s share of profits or losses is recognised in the profit and loss account and its share of changes in reserves is recognised in Other Comprehensive Income (equity). The cumulative changes are adjusted against the carrying value of the investment. When NN\u2019s share of losses in an associate or joint venture equals or exceeds the book value of the associate or joint venture, NN does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
Unrealised gains and losses on transactions between NN and its associates and joint ventures are eliminated to the extent of NN\u2019s interest. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies of NN. The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
For interests in investment entities the existence of significant influence is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager.
Associates include interests in real estate funds and private equity funds. The underlying assets of both the real estate and the private equity funds are measured at fair value through profit or loss. The fair value of underlying real estate in real estate funds is determined as included in Note 6 Investments in real estate.
The fair value of underlying private equity investments in private equity funds is generally based on a forward-looking market approach. This approach uses a combination of company financials and quoted market multiples. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and by reference to market valuations for similar entities quoted in an active market. Valuations of private equity investments are mainly based on an \u2018adjusted multiple of earnings\u2019 methodology on the following basis:
Earnings: reported earnings are adjusted for non-recurring items, such as restructuring expenses, for significant corporate actions and, in exceptional cases, for run-rate adjustments to arrive at maintainable earnings. The most common measure is earnings before interest, tax, depreciation and amortisation (EBITDA). Earnings used are usually management forecasts for the current year, unless data from management accounts for the 12 months preceding the reporting period or the latest audited annual accounts provide a more reliable estimate of maintainable earnings.
Earnings multiples: earnings multiples are derived from comparable listed companies or relevant market transaction multiples for companies in the same industry and, where possible, with a similar business model and profile in terms of size, products, services and customers, growth rates and geographic focus.
Adjustments are made for differences in the relative performance in the group of comparable companies.
Adjustments: a marketability or liquidity discount is applied based on factors such as alignment with management and other investors and NN\u2019s investment rights in the deal structure.
Associates are entities over which NN has significant influence but not control. Joint ventures are entities in which NN has joint control.
Associates and joint ventures are initially recognised at cost (including goodwill) and subsequently accounted for using the equity method of accounting. Subsequently, NN\u2019s share of profits or losses is recognised in the profit and loss account and its share of changes in reserves is recognised in Other Comprehensive Income (equity). The cumulative changes are adjusted against the carrying value of the investment. When NN\u2019s share of losses in an associate or joint venture equals or exceeds the book value of the associate or joint venture, NN does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
Unrealised gains and losses on transactions between NN and its associates and joint ventures are eliminated to the extent of NN\u2019s interest. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies of NN. The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
For interests in investment entities the existence of significant influence is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager.
Associates include interests in real estate funds and private equity funds. The underlying assets of both the real estate and the private equity funds are measured at fair value through profit or loss. The fair value of underlying real estate in real estate funds is determined as included in Note 6 Investments in real estate.
The fair value of underlying private equity investments in private equity funds is generally based on a forward-looking market approach. This approach uses a combination of company financials and quoted market multiples. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and by reference to market valuations for similar entities quoted in an active market. Valuations of private equity investments are mainly based on an \u2018adjusted multiple of earnings\u2019 methodology on the following basis:
Earnings: reported earnings are adjusted for non-recurring items, such as restructuring expenses, for significant corporate actions and, in exceptional cases, for run-rate adjustments to arrive at maintainable earnings. The most common measure is earnings before interest, tax, depreciation and amortisation (EBITDA). Earnings used are usually management forecasts for the current year, unless data from management accounts for the 12 months preceding the reporting period or the latest audited annual accounts provide a more reliable estimate of maintainable earnings.
Earnings multiples: earnings multiples are derived from comparable listed companies or relevant market transaction multiples for companies in the same industry and, where possible, with a similar business model and profile in terms of size, products, services and customers, growth rates and geographic focus.
Adjustments are made for differences in the relative performance in the group of comparable companies.
Adjustments: a marketability or liquidity discount is applied based on factors such as alignment with management and other investors and NN\u2019s investment rights in the deal structure.
Associates are entities over which NN has significant influence but not control. Joint ventures are entities in which NN has joint control.
Associates and joint ventures are initially recognised at cost (including goodwill) and subsequently accounted for using the equity method of accounting. Subsequently, NN\u2019s share of profits or losses is recognised in the profit and loss account and its share of changes in reserves is recognised in Other Comprehensive Income (equity). The cumulative changes are adjusted against the carrying value of the investment. When NN\u2019s share of losses in an associate or joint venture equals or exceeds the book value of the associate or joint venture, NN does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
Unrealised gains and losses on transactions between NN and its associates and joint ventures are eliminated to the extent of NN\u2019s interest. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies of NN. The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
For interests in investment entities the existence of significant influence is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager.
Associates include interests in real estate funds and private equity funds. The underlying assets of both the real estate and the private equity funds are measured at fair value through profit or loss. The fair value of underlying real estate in real estate funds is determined as included in Note 6 Investments in real estate.
The fair value of underlying private equity investments in private equity funds is generally based on a forward-looking market approach. This approach uses a combination of company financials and quoted market multiples. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and by reference to market valuations for similar entities quoted in an active market. Valuations of private equity investments are mainly based on an \u2018adjusted multiple of earnings\u2019 methodology on the following basis:
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i7066": { "value": "Associates are entities over which NN has significant influence but not control. Joint ventures are entities in which NN has joint control.
Associates and joint ventures are initially recognised at cost (including goodwill) and subsequently accounted for using the equity method of accounting. Subsequently, NN\u2019s share of profits or losses is recognised in the profit and loss account and its share of changes in reserves is recognised in Other Comprehensive Income (equity). The cumulative changes are adjusted against the carrying value of the investment. When NN\u2019s share of losses in an associate or joint venture equals or exceeds the book value of the associate or joint venture, NN does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
Unrealised gains and losses on transactions between NN and its associates and joint ventures are eliminated to the extent of NN\u2019s interest. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies of NN. The reporting dates of all significant associates and joint ventures are consistent with the reporting date of NN.
For interests in investment entities the existence of significant influence is determined taking into account both NN\u2019s financial interests for own risk and its role as asset manager.
Associates include interests in real estate funds and private equity funds. The underlying assets of both the real estate and the private equity funds are measured at fair value through profit or loss. The fair value of underlying real estate in real estate funds is determined as included in Note 6 Investments in real estate.
The fair value of underlying private equity investments in private equity funds is generally based on a forward-looking market approach. This approach uses a combination of company financials and quoted market multiples. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and by reference to market valuations for similar entities quoted in an active market. Valuations of private equity investments are mainly based on an \u2018adjusted multiple of earnings\u2019 methodology on the following basis:
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i7733": { "value": "Land and buildings held for own use are stated at fair value at the balance sheet date. Increases in the carrying value are recognised in Other Comprehensive Income (equity). Decreases in the carrying value that offset previous increases of the same asset are charged against Other Comprehensive Income (equity); all other decreases are recognised in the profit and loss account. Increases that reverse a revaluation decrease on the same asset previously recognised in net result are recognised in the profit and loss account.
Depreciation is recognised based on the fair value and the estimated useful life (in general 20-50 years). On disposal, the related revaluation reserve in equity is transferred within equity to \u2018Retained earnings\u2019.
The fair value of land and buildings is based on regular appraisals by independent, qualified valuers or internally, similar to appraisals of real estate investments. All significant holdings of land and buildings are appraised at least annually. Subsequent expenditure is included in the asset\u2019s carrying value when it is probable that future economic benefits associated with the item will flow to NN and the cost of the item can be measured reliably.
Equipment is stated at cost less accumulated depreciation and any impairment losses. The estimated useful lives are generally as follows: two to five years for data processing equipment and four to ten years for fixtures and fittings. Expenditure incurred on maintenance and repairs is recognised in the profit and loss account when incurred. Expenditure incurred on major improvements is capitalised and depreciated. The difference between the proceeds on disposal and net carrying value is recognised in the profit and loss account in \u2018Other, part of Other result\u2019.
Items of property and equipment are depreciated. The carrying values of the assets are depreciated on a straight-line basis over the estimated useful lives. Methods of depreciation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Property in own use | 70 | 91 |
Equipment | 64 | 59 |
Property and equipment owned | 134 | 150 |
Right of use assets | 179 | 152 |
Property and equipment total | 313 | 302 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Property in own use \u2013 opening balance | 91 | 92 |
Additions | 3 | 3 |
Transfers from (to) investments in real estate | -4 | \u00a0 |
Revaluations | 1 | 2 |
Disposals | -19 | -6 |
Depreciation | -2 | -2 |
Changes in the composition of the group and other changes | \u00a0 | 2 |
Property in own use \u2013 closing balance | 70 | 91 |
Gross carrying value | 89 | 150 |
Accumulated depreciation, revaluations and impairments | -19 | -59 |
Net carrying value | 70 | 91 |
Revaluation surplus \u2013 opening balance | 16 | 14 |
Revaluation in year | 9 | 2 |
Released in year | -10 | \u00a0 |
Revaluation surplus \u2013 closing balance | 15 | 16 |
| \u00a0 | Data processing equipment | Fixtures and fittings and other equipment | Total | |||
|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Equipment \u2013 opening balance | 24 | 33 | 35 | 49 | 59 | 82 |
Additions | 10 | 8 | 22 | 24 | 32 | 32 |
Disposals | \u00a0 | \u00a0 | -2 | -18 | -2 | -18 |
Depreciation | -15 | -17 | -13 | -20 | -28 | -37 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | 3 | \u00a0 | 3 | \u00a0 |
Equipment \u2013 closing balance | 19 | 24 | 45 | 35 | 64 | 59 |
Gross carrying value | 214 | 204 | 295 | 272 | 509 | 476 |
Accumulated depreciation | -195 | -180 | -250 | -237 | -445 | -417 |
Net carrying value | 19 | 24 | 45 | 35 | 64 | 59 |
| \u00a0 | Property | Equipment | Total | |||
|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Right of use assets \u2013 opening balance | 129 | 155 | 23 | 19 | 152 | 174 |
Additions | 88 | 9 | 19 | 17 | 107 | 26 |
Disposals | -39 | -2 | -1 | -2 | -40 | -4 |
Depreciation | -28 | -31 | -10 | -12 | -38 | -43 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | \u00a0 | 1 | \u00a0 | 1 |
Foreign currency exchange differences | -2 | -2 | \u00a0 | \u00a0 | -2 | -2 |
Right of use assets \u2013 closing balance | 148 | 129 | 31 | 23 | 179 | 152 |
Gross carrying value | 402 | 355 | 110 | 92 | 512 | 447 |
Accumulated depreciation | -254 | -226 | -79 | -69 | -333 | -295 |
Net carrying value | 148 | 129 | 31 | 23 | 179 | 152 |
Land and buildings held for own use are stated at fair value at the balance sheet date. Increases in the carrying value are recognised in Other Comprehensive Income (equity). Decreases in the carrying value that offset previous increases of the same asset are charged against Other Comprehensive Income (equity); all other decreases are recognised in the profit and loss account. Increases that reverse a revaluation decrease on the same asset previously recognised in net result are recognised in the profit and loss account.
Depreciation is recognised based on the fair value and the estimated useful life (in general 20-50 years). On disposal, the related revaluation reserve in equity is transferred within equity to \u2018Retained earnings\u2019.
The fair value of land and buildings is based on regular appraisals by independent, qualified valuers or internally, similar to appraisals of real estate investments. All significant holdings of land and buildings are appraised at least annually. Subsequent expenditure is included in the asset\u2019s carrying value when it is probable that future economic benefits associated with the item will flow to NN and the cost of the item can be measured reliably.
Equipment is stated at cost less accumulated depreciation and any impairment losses. The estimated useful lives are generally as follows: two to five years for data processing equipment and four to ten years for fixtures and fittings. Expenditure incurred on maintenance and repairs is recognised in the profit and loss account when incurred. Expenditure incurred on major improvements is capitalised and depreciated. The difference between the proceeds on disposal and net carrying value is recognised in the profit and loss account in \u2018Other, part of Other result\u2019.
Items of property and equipment are depreciated. The carrying values of the assets are depreciated on a straight-line basis over the estimated useful lives. Methods of depreciation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Property in own use | 70 | 91 |
Equipment | 64 | 59 |
Property and equipment owned | 134 | 150 |
Right of use assets | 179 | 152 |
Property and equipment total | 313 | 302 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Property in own use \u2013 opening balance | 91 | 92 |
Additions | 3 | 3 |
Transfers from (to) investments in real estate | -4 | \u00a0 |
Revaluations | 1 | 2 |
Disposals | -19 | -6 |
Depreciation | -2 | -2 |
Changes in the composition of the group and other changes | \u00a0 | 2 |
Property in own use \u2013 closing balance | 70 | 91 |
Gross carrying value | 89 | 150 |
Accumulated depreciation, revaluations and impairments | -19 | -59 |
Net carrying value | 70 | 91 |
Revaluation surplus \u2013 opening balance | 16 | 14 |
Revaluation in year | 9 | 2 |
Released in year | -10 | \u00a0 |
Revaluation surplus \u2013 closing balance | 15 | 16 |
| \u00a0 | Data processing equipment | Fixtures and fittings and other equipment | Total | |||
|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Equipment \u2013 opening balance | 24 | 33 | 35 | 49 | 59 | 82 |
Additions | 10 | 8 | 22 | 24 | 32 | 32 |
Disposals | \u00a0 | \u00a0 | -2 | -18 | -2 | -18 |
Depreciation | -15 | -17 | -13 | -20 | -28 | -37 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | 3 | \u00a0 | 3 | \u00a0 |
Equipment \u2013 closing balance | 19 | 24 | 45 | 35 | 64 | 59 |
Gross carrying value | 214 | 204 | 295 | 272 | 509 | 476 |
Accumulated depreciation | -195 | -180 | -250 | -237 | -445 | -417 |
Net carrying value | 19 | 24 | 45 | 35 | 64 | 59 |
| \u00a0 | Property | Equipment | Total | |||
|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Right of use assets \u2013 opening balance | 129 | 155 | 23 | 19 | 152 | 174 |
Additions | 88 | 9 | 19 | 17 | 107 | 26 |
Disposals | -39 | -2 | -1 | -2 | -40 | -4 |
Depreciation | -28 | -31 | -10 | -12 | -38 | -43 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | \u00a0 | 1 | \u00a0 | 1 |
Foreign currency exchange differences | -2 | -2 | \u00a0 | \u00a0 | -2 | -2 |
Right of use assets \u2013 closing balance | 148 | 129 | 31 | 23 | 179 | 152 |
Gross carrying value | 402 | 355 | 110 | 92 | 512 | 447 |
Accumulated depreciation | -254 | -226 | -79 | -69 | -333 | -295 |
Net carrying value | 148 | 129 | 31 | 23 | 179 | 152 |
Land and buildings held for own use are stated at fair value at the balance sheet date. Increases in the carrying value are recognised in Other Comprehensive Income (equity). Decreases in the carrying value that offset previous increases of the same asset are charged against Other Comprehensive Income (equity); all other decreases are recognised in the profit and loss account. Increases that reverse a revaluation decrease on the same asset previously recognised in net result are recognised in the profit and loss account.
Depreciation is recognised based on the fair value and the estimated useful life (in general 20-50 years). On disposal, the related revaluation reserve in equity is transferred within equity to \u2018Retained earnings\u2019.
The fair value of land and buildings is based on regular appraisals by independent, qualified valuers or internally, similar to appraisals of real estate investments. All significant holdings of land and buildings are appraised at least annually. Subsequent expenditure is included in the asset\u2019s carrying value when it is probable that future economic benefits associated with the item will flow to NN and the cost of the item can be measured reliably.
Equipment is stated at cost less accumulated depreciation and any impairment losses. The estimated useful lives are generally as follows: two to five years for data processing equipment and four to ten years for fixtures and fittings. Expenditure incurred on maintenance and repairs is recognised in the profit and loss account when incurred. Expenditure incurred on major improvements is capitalised and depreciated. The difference between the proceeds on disposal and net carrying value is recognised in the profit and loss account in \u2018Other, part of Other result\u2019.
Items of property and equipment are depreciated. The carrying values of the assets are depreciated on a straight-line basis over the estimated useful lives. Methods of depreciation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i7739": { "value": "Items of property and equipment are depreciated. The carrying values of the assets are depreciated on a straight-line basis over the estimated useful lives. Methods of depreciation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i8042": { "value": "NN\u2019s acquisitions are accounted for using the acquisition method of accounting. Goodwill, being the positive difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, is capitalised as an intangible asset. In case there is a negative difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, this is referred to as negative goodwill and is recognised in profit and loss in the reporting period the acquisition is finalised. Acquisition related costs are recognised in the profit and loss account when incurred and presented in the profit and loss account as \u2018Other operating expenses\u2019.
The initial accounting for the fair value of the net assets of the companies acquired during the year may be determined only provisionally as the determination of the fair value can be complex and the time between the acquisition and the preparation of the annual accounts can be limited. The initial accounting shall be completed within a year after acquisition.
Where a business combination is achieved in stages, NN\u2019s previously held interests in the assets and liabilities of the acquired entity are remeasured to fair value at the acquisition date (i.e. the date NN obtains control) and the resulting gain or loss, if any, is recognised in the profit and loss account. Amounts arising from interests in the acquiree before the acquisition date that have previously been recognised in Other Comprehensive Income (equity) are reclassified to the profit and loss account, where such treatment would be appropriate if that interest were disposed of.
Intangible assets with finite useful lives are amortised on a straight-line basis over the estimated useful lives. Methods of amortisation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Amortisation is included in \u2018Other operating expenses\u2019.
Computer software that has been purchased or generated internally for own use is stated at cost less amortisation and any impairment losses. The expected useful life of computer software will generally not exceed three years.
Other intangible assets include brand names, client relationships and distribution channels. These assets are stated at cost less amortisation and any impairment losses. The estimated useful life is generally between 2 and 18 years.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
2025 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 869 | 72 | 288 | 1,229 |
Additions | 7 | 26 | 4 | 37 |
Amortisation | \u00a0 | -33 | -38 | -71 |
Disposals | \u00a0 | -1 | \u00a0 | -1 |
Changes in the composition of the group and other changes | -4 | 19 | -22 | -7 |
Foreign currency exchange differences | 3 | -1 | \u00a0 | 2 |
Intangible assets \u2013 closing balance | 875 | 82 | 232 | 1,189 |
Gross carrying value | 1,848 | 1,073 | 853 | 3,774 |
Accumulated amortisation | \u00a0 | -921 | -571 | -1,492 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 875 | 82 | 232 | 1,189 |
2024 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 892 | 79 | 299 | 1,270 |
Additions | \u00a0 | 36 | 3 | 39 |
Amortisation | \u00a0 | -37 | -38 | -75 |
Disposals | \u00a0 | -6 | \u00a0 | -6 |
Changes in the composition of the group and other changes | -26 | \u00a0 | 24 | -2 |
Foreign currency exchange differences | 3 | \u00a0 | \u00a0 | 3 |
Intangible assets \u2013 closing balance | 869 | 72 | 288 | 1,229 |
Gross carrying value | 1,842 | 1,030 | 871 | 3,743 |
Accumulated amortisation | \u00a0 | -888 | -533 | -1,421 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 869 | 72 | 288 | 1,229 |
Other intangible assets include the intangibles recognised upon the acquisition of Met Life Greece, Heinenoord, VIVAT Non-life and the remaining part of the intangibles recognised in 2017 on the acquisition of Delta Lloyd.
The acquisition intangibles comprise:
Brand names \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Client relationships \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Distribution channels/agreements \u2013 with an average expected remaining useful life at the acquisition date of approximately 18 years.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Netherlands Non-life | 441 | 434 |
Insurance Europe | 372 | 373 |
Banking | 62 | 62 |
Goodwill | 875 | 869 |
NN\u2019s acquisitions are accounted for using the acquisition method of accounting. Goodwill, being the positive difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, is capitalised as an intangible asset. In case there is a negative difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, this is referred to as negative goodwill and is recognised in profit and loss in the reporting period the acquisition is finalised. Acquisition related costs are recognised in the profit and loss account when incurred and presented in the profit and loss account as \u2018Other operating expenses\u2019.
The initial accounting for the fair value of the net assets of the companies acquired during the year may be determined only provisionally as the determination of the fair value can be complex and the time between the acquisition and the preparation of the annual accounts can be limited. The initial accounting shall be completed within a year after acquisition.
Where a business combination is achieved in stages, NN\u2019s previously held interests in the assets and liabilities of the acquired entity are remeasured to fair value at the acquisition date (i.e. the date NN obtains control) and the resulting gain or loss, if any, is recognised in the profit and loss account. Amounts arising from interests in the acquiree before the acquisition date that have previously been recognised in Other Comprehensive Income (equity) are reclassified to the profit and loss account, where such treatment would be appropriate if that interest were disposed of.
Intangible assets with finite useful lives are amortised on a straight-line basis over the estimated useful lives. Methods of amortisation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Amortisation is included in \u2018Other operating expenses\u2019.
Computer software that has been purchased or generated internally for own use is stated at cost less amortisation and any impairment losses. The expected useful life of computer software will generally not exceed three years.
Other intangible assets include brand names, client relationships and distribution channels. These assets are stated at cost less amortisation and any impairment losses. The estimated useful life is generally between 2 and 18 years.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
2025 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 869 | 72 | 288 | 1,229 |
Additions | 7 | 26 | 4 | 37 |
Amortisation | \u00a0 | -33 | -38 | -71 |
Disposals | \u00a0 | -1 | \u00a0 | -1 |
Changes in the composition of the group and other changes | -4 | 19 | -22 | -7 |
Foreign currency exchange differences | 3 | -1 | \u00a0 | 2 |
Intangible assets \u2013 closing balance | 875 | 82 | 232 | 1,189 |
Gross carrying value | 1,848 | 1,073 | 853 | 3,774 |
Accumulated amortisation | \u00a0 | -921 | -571 | -1,492 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 875 | 82 | 232 | 1,189 |
2024 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 892 | 79 | 299 | 1,270 |
Additions | \u00a0 | 36 | 3 | 39 |
Amortisation | \u00a0 | -37 | -38 | -75 |
Disposals | \u00a0 | -6 | \u00a0 | -6 |
Changes in the composition of the group and other changes | -26 | \u00a0 | 24 | -2 |
Foreign currency exchange differences | 3 | \u00a0 | \u00a0 | 3 |
Intangible assets \u2013 closing balance | 869 | 72 | 288 | 1,229 |
Gross carrying value | 1,842 | 1,030 | 871 | 3,743 |
Accumulated amortisation | \u00a0 | -888 | -533 | -1,421 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 869 | 72 | 288 | 1,229 |
Other intangible assets include the intangibles recognised upon the acquisition of Met Life Greece, Heinenoord, VIVAT Non-life and the remaining part of the intangibles recognised in 2017 on the acquisition of Delta Lloyd.
The acquisition intangibles comprise:
Brand names \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Client relationships \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Distribution channels/agreements \u2013 with an average expected remaining useful life at the acquisition date of approximately 18 years.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Netherlands Non-life | 441 | 434 |
Insurance Europe | 372 | 373 |
Banking | 62 | 62 |
Goodwill | 875 | 869 |
NN\u2019s acquisitions are accounted for using the acquisition method of accounting. Goodwill, being the positive difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, is capitalised as an intangible asset. In case there is a negative difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, this is referred to as negative goodwill and is recognised in profit and loss in the reporting period the acquisition is finalised. Acquisition related costs are recognised in the profit and loss account when incurred and presented in the profit and loss account as \u2018Other operating expenses\u2019.
The initial accounting for the fair value of the net assets of the companies acquired during the year may be determined only provisionally as the determination of the fair value can be complex and the time between the acquisition and the preparation of the annual accounts can be limited. The initial accounting shall be completed within a year after acquisition.
Where a business combination is achieved in stages, NN\u2019s previously held interests in the assets and liabilities of the acquired entity are remeasured to fair value at the acquisition date (i.e. the date NN obtains control) and the resulting gain or loss, if any, is recognised in the profit and loss account. Amounts arising from interests in the acquiree before the acquisition date that have previously been recognised in Other Comprehensive Income (equity) are reclassified to the profit and loss account, where such treatment would be appropriate if that interest were disposed of.
Intangible assets with finite useful lives are amortised on a straight-line basis over the estimated useful lives. Methods of amortisation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Amortisation is included in \u2018Other operating expenses\u2019.
Computer software that has been purchased or generated internally for own use is stated at cost less amortisation and any impairment losses. The expected useful life of computer software will generally not exceed three years.
Other intangible assets include brand names, client relationships and distribution channels. These assets are stated at cost less amortisation and any impairment losses. The estimated useful life is generally between 2 and 18 years.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
2025 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 869 | 72 | 288 | 1,229 |
Additions | 7 | 26 | 4 | 37 |
Amortisation | \u00a0 | -33 | -38 | -71 |
Disposals | \u00a0 | -1 | \u00a0 | -1 |
Changes in the composition of the group and other changes | -4 | 19 | -22 | -7 |
Foreign currency exchange differences | 3 | -1 | \u00a0 | 2 |
Intangible assets \u2013 closing balance | 875 | 82 | 232 | 1,189 |
Gross carrying value | 1,848 | 1,073 | 853 | 3,774 |
Accumulated amortisation | \u00a0 | -921 | -571 | -1,492 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 875 | 82 | 232 | 1,189 |
2024 | Goodwill | Software | Other | Total |
|---|---|---|---|---|
Intangible assets \u2013 opening balance | 892 | 79 | 299 | 1,270 |
Additions | \u00a0 | 36 | 3 | 39 |
Amortisation | \u00a0 | -37 | -38 | -75 |
Disposals | \u00a0 | -6 | \u00a0 | -6 |
Changes in the composition of the group and other changes | -26 | \u00a0 | 24 | -2 |
Foreign currency exchange differences | 3 | \u00a0 | \u00a0 | 3 |
Intangible assets \u2013 closing balance | 869 | 72 | 288 | 1,229 |
Gross carrying value | 1,842 | 1,030 | 871 | 3,743 |
Accumulated amortisation | \u00a0 | -888 | -533 | -1,421 |
Accumulated impairments | -973 | -70 | -50 | -1,093 |
Net carrying value | 869 | 72 | 288 | 1,229 |
Other intangible assets include the intangibles recognised upon the acquisition of Met Life Greece, Heinenoord, VIVAT Non-life and the remaining part of the intangibles recognised in 2017 on the acquisition of Delta Lloyd.
The acquisition intangibles comprise:
Brand names \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Client relationships \u2013 with an average expected remaining useful life at the acquisition date of approximately ten years.
Distribution channels/agreements \u2013 with an average expected remaining useful life at the acquisition date of approximately 18 years.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Netherlands Non-life | 441 | 434 |
Insurance Europe | 372 | 373 |
Banking | 62 | 62 |
Goodwill | 875 | 869 |
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
NN\u2019s acquisitions are accounted for using the acquisition method of accounting. Goodwill, being the positive difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, is capitalised as an intangible asset. In case there is a negative difference between the cost of the acquisition (including assumed debt) and NN\u2019s interest in the fair value of the acquired assets, liabilities and contingent liabilities as at the date of acquisition, this is referred to as negative goodwill and is recognised in profit and loss in the reporting period the acquisition is finalised. Acquisition related costs are recognised in the profit and loss account when incurred and presented in the profit and loss account as \u2018Other operating expenses\u2019.
The initial accounting for the fair value of the net assets of the companies acquired during the year may be determined only provisionally as the determination of the fair value can be complex and the time between the acquisition and the preparation of the annual accounts can be limited. The initial accounting shall be completed within a year after acquisition.
Where a business combination is achieved in stages, NN\u2019s previously held interests in the assets and liabilities of the acquired entity are remeasured to fair value at the acquisition date (i.e. the date NN obtains control) and the resulting gain or loss, if any, is recognised in the profit and loss account. Amounts arising from interests in the acquiree before the acquisition date that have previously been recognised in Other Comprehensive Income (equity) are reclassified to the profit and loss account, where such treatment would be appropriate if that interest were disposed of.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i8037": { "value": "Intangible assets with finite useful lives are amortised on a straight-line basis over the estimated useful lives. Methods of amortisation, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Amortisation is included in \u2018Other operating expenses\u2019.
Computer software that has been purchased or generated internally for own use is stated at cost less amortisation and any impairment losses. The expected useful life of computer software will generally not exceed three years.
Other intangible assets include brand names, client relationships and distribution channels. These assets are stated at cost less amortisation and any impairment losses. The estimated useful life is generally between 2 and 18 years.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
Impairment reviews with respect to goodwill and intangible assets are performed at least annually and more frequently if events indicate that impairments may have occurred. The identification of impairment is an inherently uncertain process involving various assumptions and factors. Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available.
Goodwill is tested for impairment at the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other groups of assets, i.e. the lowest level at which it is monitored for internal management purposes. This level is defined as the cash-generating unit (reporting unit) as set out below. Goodwill is tested for impairment by comparing the carrying value of the cash-generating unit (reporting unit) to the best estimate of the recoverable amount of that cash-generating unit (reporting unit). The carrying value is determined as the IFRS-EU book value including goodwill and certain acquisition intangibles. The recoverable amount is estimated as the higher of fair value less cost to sell and value in use. Several methodologies are applied to arrive at the best estimate of the recoverable amount. The identification of impairment is an inherently uncertain process involving various assumptions and factors.
Estimates and assumptions (including unobservable Level 3 inputs) are based on management\u2019s judgement and other information available. For the goodwill recognised there is a significant excess of recoverable amount over book value for the cash-generating units (reporting units) to which goodwill is allocated.
In 2025 and 2024, there was no impairment of goodwill.
Other intangible assets are tested for impairment by comparing the carrying value with the best estimate of the recoverable amount of the individual intangible asset.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax receivable | 50 | 446 |
Accrued interest and rents | 1,342 | 1,474 |
Other accrued assets | 268 | 219 |
Cash collateral amounts paid | 3,405 | 2,584 |
Other | 657 | 525 |
Other assets | 5,722 | 5,248 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax receivable | 50 | 446 |
Accrued interest and rents | 1,342 | 1,474 |
Other accrued assets | 268 | 219 |
Cash collateral amounts paid | 3,405 | 2,584 |
Other | 657 | 525 |
Other assets | 5,722 | 5,248 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax receivable | 50 | 446 |
Accrued interest and rents | 1,342 | 1,474 |
Other accrued assets | 268 | 219 |
Cash collateral amounts paid | 3,405 | 2,584 |
Other | 657 | 525 |
Other assets | 5,722 | 5,248 |
Other liabilities include reorganisation provisions, litigation provisions and other provisions (included in the line provisions below). Reorganisation provisions include employee termination benefits when NN is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Provisions are discounted when the effect of the time value of money is significant, using a before tax discount rate. The determination of provisions is an inherently uncertain process involving estimates regarding amounts and timing of cash flows.
The net defined benefit asset or liability recognised in the balance sheet in respect of defined benefit pension plans is the fair value of the plan assets less the present value of the defined benefit obligation at the balance sheet date. Plan assets are measured at fair value at the balance sheet date. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
For defined contribution plans, NN pays contributions to publicly or privately administered pension plans on a mandatory, contractual or voluntary basis. NN has no further payment obligations once the contributions have been paid. The contributions are recognised as staff expenses in the profit and loss account when they are due.
Some NN companies provide post-employment benefits to certain employees and former employees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans.
Share-based payment expenses are recognised as staff expenses over the vesting period. A corresponding increase in equity is recognised for equity-settled share-based payment transactions. The fair value of equity-settled share-based payment transactions is measured at the grant date. For cash-settled share-based payment transactions, a liability is recognised at fair value; this fair value is remeasured at every balance sheet date.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax payable | 52 | 26 |
Net defined benefit liability | 76 | 41 |
Other post-employment benefits | 3 | 4 |
Other staff-related liabilities | 85 | 87 |
Other taxation and social security contributions | 105 | 103 |
Lease liabilities | 269 | 229 |
Accrued interest | 351 | 483 |
Costs payable | 297 | 285 |
Provisions | 382 | 463 |
Amounts to be settled | 23 | 29 |
Cash collateral amounts received | 208 | 1,454 |
Other | 597 | 569 |
Other liabilities | 2,448 | 3,773 |
Other staff-related liabilities include provisions for vacation leave, variable compensation, jubilee and disability/illness.
Cash collateral amounts received relate to collateralised derivatives.
Other mainly relates to year-end accruals in the normal course of business.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Fair value of plan assets | 26 | 71 |
Defined benefit obligation | 102 | 112 |
Net defined benefit liability recognised in the balance sheet (funded status) | 76 | 41 |
\u2013 Other assets | \u00a0 | \u00a0 |
\u2013 Other liabilities | 76 | 41 |
Net defined benefit liability | 76 | 41 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Provisions \u2013 opening balance | 463 | 524 |
Additions | 51 | 32 |
Releases | -14 | -25 |
Charges | -109 | -71 |
Changes in the composition of the group and other changes | -7 | 3 |
Exchange rate differences | -2 | \u00a0 |
Provisions \u2013 closing balance | 382 | 463 |
Provisions include mainly the provision for the settlement related to Unit-linked products in the Netherlands and reorganisation provisions. Reference is made to Note 41 Legal proceedings for Unit-linked. Reorganisation provisions were recognised for operations in the Netherlands for the cost of workforce reductions. Additions to the reorganisation provision were recognised in 2025 and 2024 due to additional initiatives announced during the year.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax receivable | 50 | 446 |
Accrued interest and rents | 1,342 | 1,474 |
Other accrued assets | 268 | 219 |
Cash collateral amounts paid | 3,405 | 2,584 |
Other | 657 | 525 |
Other assets | 5,722 | 5,248 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Share capital | 32 | 32 |
Share premium | 12,581 | 12,581 |
Accumulated revaluations on investments | -8,095 | -3,865 |
Accumulated revaluations on (re)insurance contracts | 16,284 | 12,901 |
Foreign currency translation reserve | -482 | -487 |
Net defined benefit asset/liability remeasurement reserve | -42 | -55 |
Other reserves | -1,200 | -1,276 |
Shareholders' equity (parent) | 19,078 | 19,831 |
Minority interests | 93 | 85 |
Undated subordinated notes | 1,984 | 1,736 |
Total equity | 21,155 | 21,652 |
2025 | Share capital | Share premium | Reserves | Total shareholders' equity (parent) |
|---|---|---|---|---|
Shareholders' equity (parent) \u2013 opening balance | 32 | 12,581 | 7,218 | 19,831 |
Total amount recognised directly in equity (Other Comprehensive Income) | \u00a0 | \u00a0 | -620 | -620 |
Net result for the year | \u00a0 | \u00a0 | 1,188 | 1,188 |
Dividend | \u00a0 | \u00a0 | -939 | -939 |
Sale (purchase) of treasury shares | \u00a0 | \u00a0 | -298 | -298 |
Employee stock option and share plans | \u00a0 | \u00a0 | 2 | 2 |
Coupon on undated subordinated notes | \u00a0 | \u00a0 | -86 | -86 |
Shareholders' equity (parent) \u2013 closing balance | 32 | 12,581 | 6,465 | 19,078 |
In March 2025, NN Group N.V. announced a tender for purchase by NN Group N.V. of the EUR 1 billion Fixed to Floating Rate Undated subordinated notes for cash at a price of 101.6% of the nominal amount. The tender was completed in March 2025 and NN Group N.V. accepted the purchase of EUR 763 million in nominal amount.
In March 2025 NN Group N.V. issued euro-denominated, perpetual, restricted Tier 1, temporary write-down securities for an amount of EUR 1 billion. The notes are first callable on 11 September 2034. The coupon is fixed at 5.75% per annum until 11 March 2035 and will be reset every fifth year thereafter.
The Undated subordinated notes have an optional annual coupon payment in July and optional semi-annual coupon payments in March and September. The annual coupon resulted in a deduction of EUR 86 million (net of tax) from equity.
2024 | Share capital | Share premium | Reserves | Total shareholders' equity (parent) |
|---|---|---|---|---|
Shareholders' equity (parent) \u2013 opening balance | 34 | 12,579 | 7,011 | 19,624 |
Total amount recognised directly in equity (Other Comprehensive Income) | \u00a0 | \u00a0 | 25 | 25 |
Net result for the year | \u00a0 | \u00a0 | 1,583 | 1,583 |
Changes in share capital | -2 | 2 | \u00a0 | 0 |
Dividend | \u00a0 | \u00a0 | -680 | -680 |
Sale (purchase) of treasury shares | \u00a0 | \u00a0 | -529 | -529 |
Employee stock option and share plans | \u00a0 | \u00a0 | 1 | 1 |
Coupon on undated subordinated notes | \u00a0 | \u00a0 | -62 | -62 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | -131 | -131 |
Shareholders' equity (parent) \u2013 closing balance | 32 | 12,581 | 7,218 | 19,831 |
During 2024, 12,093,872 ordinary shares for a total amount of EUR 529 million were repurchased under the open market share buyback programme. Treasury shares for a total amount of EUR 1 million were delivered under Employee share plans. In 2024, 5,524,775 NN Group N.V. ordinary shares were delivered for the final dividend 2023.
In 2024, 16,000,000 NN Group N.V. treasury shares were cancelled.
As at 31 December 2024, 1,574,203 treasury shares were held by NN Group N.V.
The Undated subordinated notes have an optional annual coupon payment in July and optional semi-annual coupon payments in March and September. The annual coupon resulted in a deduction of EUR 62 million (net of tax) from equity.
| \u00a0 | Ordinary shares (in number) | Ordinary shares (Amounts in EUR million) | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Authorised share capital | 700,000,000 | 700,000,000 | 84 | 84 |
Unissued share capital | 437,000,000 | 431,000,000 | 52 | 52 |
Issued share capital | 263,000,000 | 269,000,000 | 32 | 32 |
The authorised Ordinary share capital consists of 700,000,000 ordinary shares with a par value of EUR 0.12 per share. At 31 December 2025 issued and fully paid ordinary share capital consists of 263,000,000 Ordinary shares with a par value of EUR 0.12 per share.
As at 31 December 2025, none of the Preference shares had been issued. The authorised number of Preference shares is 700,000,000 shares.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Share premium \u2013 opening balance | 12,581 | 12,579 |
Issue of ordinary shares | \u00a0 | 2 |
Share premium \u2013 closing balance | 12,581 | 12,581 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Share capital | 32 | 32 |
Share premium | 12,581 | 12,581 |
Accumulated revaluations on investments | -8,095 | -3,865 |
Accumulated revaluations on (re)insurance contracts | 16,284 | 12,901 |
Foreign currency translation reserve | -482 | -487 |
Net defined benefit asset/liability remeasurement reserve | -42 | -55 |
Other reserves | -1,200 | -1,276 |
Shareholders' equity (parent) | 19,078 | 19,831 |
Minority interests | 93 | 85 |
Undated subordinated notes | 1,984 | 1,736 |
Total equity | 21,155 | 21,652 |
2025 | Share capital | Share premium | Reserves | Total shareholders' equity (parent) |
|---|---|---|---|---|
Shareholders' equity (parent) \u2013 opening balance | 32 | 12,581 | 7,218 | 19,831 |
Total amount recognised directly in equity (Other Comprehensive Income) | \u00a0 | \u00a0 | -620 | -620 |
Net result for the year | \u00a0 | \u00a0 | 1,188 | 1,188 |
Dividend | \u00a0 | \u00a0 | -939 | -939 |
Sale (purchase) of treasury shares | \u00a0 | \u00a0 | -298 | -298 |
Employee stock option and share plans | \u00a0 | \u00a0 | 2 | 2 |
Coupon on undated subordinated notes | \u00a0 | \u00a0 | -86 | -86 |
Shareholders' equity (parent) \u2013 closing balance | 32 | 12,581 | 6,465 | 19,078 |
2024 | Share capital | Share premium | Reserves | Total shareholders' equity (parent) |
|---|---|---|---|---|
Shareholders' equity (parent) \u2013 opening balance | 34 | 12,579 | 7,011 | 19,624 |
Total amount recognised directly in equity (Other Comprehensive Income) | \u00a0 | \u00a0 | 25 | 25 |
Net result for the year | \u00a0 | \u00a0 | 1,583 | 1,583 |
Changes in share capital | -2 | 2 | \u00a0 | 0 |
Dividend | \u00a0 | \u00a0 | -680 | -680 |
Sale (purchase) of treasury shares | \u00a0 | \u00a0 | -529 | -529 |
Employee stock option and share plans | \u00a0 | \u00a0 | 1 | 1 |
Coupon on undated subordinated notes | \u00a0 | \u00a0 | -62 | -62 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | -131 | -131 |
Shareholders' equity (parent) \u2013 closing balance | 32 | 12,581 | 7,218 | 19,831 |
Reference is made to Note 6 Equity in the Parent company annual accounts for the determination of the freely distributable reserves.
2025 | Property revaluation reserve | Investment revaluation reserve | Cash flow hedge reserve | Total |
|---|---|---|---|---|
Accumulated revaluation reserve \u2013 opening balance | 10 | -6,760 | 2,885 | -3,865 |
Revaluations | 1 | -2,236 | \u00a0 | -2,235 |
Realised gains / losses transferred to the profit and loss account | \u00a0 | 252 | \u00a0 | 252 |
Realised gains / losses on equity securities | \u00a0 | -208 | \u00a0 | -208 |
Changes in cash flow hedge reserve | \u00a0 | \u00a0 | -2,040 | -2,040 |
Other revaluations | \u00a0 | 1 | \u00a0 | 1 |
Accumulated revaluation reserve \u2013 closing balance | 11 | -8,951 | 845 | -8,095 |
In 2025, NN Group N.V. sold equity securities with a fair value of EUR 408 million, resulting in a realised gain (after tax) of EUR 208 million, which was transferred from the accumulated revaluations investments to other reserves.
2024 | Property revaluation reserve | Investment revaluation reserve | Cash flow hedge reserve | Total |
|---|---|---|---|---|
Accumulated revaluation reserve \u2013 opening balance | 10 | -6,967 | 2,841 | -4,116 |
Revaluations | \u00a0 | -303 | \u00a0 | -303 |
Realised gains / losses transferred to the profit and loss account | \u00a0 | 757 | \u00a0 | 757 |
Realised gains / losses on equity securities | \u00a0 | -244 | \u00a0 | -244 |
Changes in cash flow hedge reserve | \u00a0 | \u00a0 | 44 | 44 |
Other revaluations | \u00a0 | -3 | \u00a0 | -3 |
Accumulated revaluation reserve \u2013 closing balance | 10 | -6,760 | 2,885 | -3,865 |
In 2024, NN Group N.V. sold equity securities with a fair value of EUR 875 million, resulting in a realised gain (after tax) of EUR 244 million, which was transferred from the accumulated revaluations investments to other reserves.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Accumulated revaluation reserve \u2013 opening balance | 12,901 | 13,313 |
Finance result on insurance contracts recognised in Other Comprehensive Income | 3,413 | -447 |
Finance result on reinsurance contracts recognised in Other Comprehensive Income | -30 | 35 |
Accumulated revaluation reserve \u2013 closing balance | 16,284 | 12,901 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Foreign currency translation reserve \u2013 opening balance | -487 | -421 |
Unrealised revaluations after taxation | -6 | -23 |
Foreign currency exchange differences for the year | 11 | -43 |
Foreign currency translation reserve \u2013 closing balance | -482 | -487 |
Unrealised revaluations relate to changes in the value of hedging instruments that are designated as net investment hedges.
2025 | Retained | Share of | Total |
|---|---|---|---|
Other reserves \u2013 opening balance | -2,936 | 1,660 | -1,276 |
Net result for the year | 1,188 | \u00a0 | 1,188 |
Transfers from (to) share of associates reserve | -165 | 165 | 0 |
Realised gains / losses on equity securities | 208 | \u00a0 | 208 |
Dividend | -939 | \u00a0 | -939 |
Sale (purchase) of treasury shares | -298 | \u00a0 | -298 |
Employee stock option and share plans | 2 | \u00a0 | 2 |
Coupon on subordinated notes | -86 | \u00a0 | -86 |
Changes in the composition of the group and other changes | 1 | \u00a0 | 1 |
Other reserves \u2013 closing balance | -3,025 | 1,825 | -1,200 |
2024 | Retained | Share of | Total |
|---|---|---|---|
Other reserves \u2013 opening balance | -3,018 | 1,316 | -1,702 |
Net result for the year | 1,583 | \u00a0 | 1,583 |
Transfers from (to) share of associates reserve | -344 | 344 | 0 |
Realised gains / losses on equity securities | 243 | \u00a0 | 243 |
Dividend | -680 | \u00a0 | -680 |
Sale (purchase) of treasury shares | -529 | \u00a0 | -529 |
Employee stock option and share plans | 1 | \u00a0 | 1 |
Coupon on subordinated notes | -62 | \u00a0 | -62 |
Changes in the composition of the group and other changes | -130 | \u00a0 | -130 |
Other reserves \u2013 closing balance | -2,936 | 1,660 | -1,276 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Share capital | 32 | 32 |
Share premium | 12,581 | 12,581 |
Accumulated revaluations on investments | -8,095 | -3,865 |
Accumulated revaluations on (re)insurance contracts | 16,284 | 12,901 |
Foreign currency translation reserve | -482 | -487 |
Net defined benefit asset/liability remeasurement reserve | -42 | -55 |
Other reserves | -1,200 | -1,276 |
Shareholders' equity (parent) | 19,078 | 19,831 |
Minority interests | 93 | 85 |
Undated subordinated notes | 1,984 | 1,736 |
Total equity | 21,155 | 21,652 |
2025 | Share capital | Share premium | Reserves | Total shareholders' equity (parent) |
|---|---|---|---|---|
Shareholders' equity (parent) \u2013 opening balance | 32 | 12,581 | 7,218 | 19,831 |
Total amount recognised directly in equity (Other Comprehensive Income) | \u00a0 | \u00a0 | -620 | -620 |
Net result for the year | \u00a0 | \u00a0 | 1,188 | 1,188 |
Dividend | \u00a0 | \u00a0 | -939 | -939 |
Sale (purchase) of treasury shares | \u00a0 | \u00a0 | -298 | -298 |
Employee stock option and share plans | \u00a0 | \u00a0 | 2 | 2 |
Coupon on undated subordinated notes | \u00a0 | \u00a0 | -86 | -86 |
Shareholders' equity (parent) \u2013 closing balance | 32 | 12,581 | 6,465 | 19,078 |
In March 2025, NN Group N.V. announced a tender for purchase by NN Group N.V. of the EUR 1 billion Fixed to Floating Rate Undated subordinated notes for cash at a price of 101.6% of the nominal amount. The tender was completed in March 2025 and NN Group N.V. accepted the purchase of EUR 763 million in nominal amount.
In March 2025 NN Group N.V. issued euro-denominated, perpetual, restricted Tier 1, temporary write-down securities for an amount of EUR 1 billion. The notes are first callable on 11 September 2034. The coupon is fixed at 5.75% per annum until 11 March 2035 and will be reset every fifth year thereafter.
The Undated subordinated notes have an optional annual coupon payment in July and optional semi-annual coupon payments in March and September. The annual coupon resulted in a deduction of EUR 86 million (net of tax) from equity.
2024 | Share capital | Share premium | Reserves | Total shareholders' equity (parent) |
|---|---|---|---|---|
Shareholders' equity (parent) \u2013 opening balance | 34 | 12,579 | 7,011 | 19,624 |
Total amount recognised directly in equity (Other Comprehensive Income) | \u00a0 | \u00a0 | 25 | 25 |
Net result for the year | \u00a0 | \u00a0 | 1,583 | 1,583 |
Changes in share capital | -2 | 2 | \u00a0 | 0 |
Dividend | \u00a0 | \u00a0 | -680 | -680 |
Sale (purchase) of treasury shares | \u00a0 | \u00a0 | -529 | -529 |
Employee stock option and share plans | \u00a0 | \u00a0 | 1 | 1 |
Coupon on undated subordinated notes | \u00a0 | \u00a0 | -62 | -62 |
Changes in the composition of the group and other changes | \u00a0 | \u00a0 | -131 | -131 |
Shareholders' equity (parent) \u2013 closing balance | 32 | 12,581 | 7,218 | 19,831 |
| \u00a0 | Ordinary shares (in number) | Ordinary shares (Amounts in EUR million) | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Authorised share capital | 700,000,000 | 700,000,000 | 84 | 84 |
Unissued share capital | 437,000,000 | 431,000,000 | 52 | 52 |
Issued share capital | 263,000,000 | 269,000,000 | 32 | 32 |
The authorised Ordinary share capital consists of 700,000,000 ordinary shares with a par value of EUR 0.12 per share. At 31 December 2025 issued and fully paid ordinary share capital consists of 263,000,000 Ordinary shares with a par value of EUR 0.12 per share.
Reference is made to Note 6 Equity in the Parent company annual accounts for the determination of the freely distributable reserves.
As at 31 December 2025, none of the Preference shares had been issued. The authorised number of Preference shares is 700,000,000 shares.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Share premium \u2013 opening balance | 12,581 | 12,579 |
Issue of ordinary shares | \u00a0 | 2 |
Share premium \u2013 closing balance | 12,581 | 12,581 |
2025 | Property revaluation reserve | Investment revaluation reserve | Cash flow hedge reserve | Total |
|---|---|---|---|---|
Accumulated revaluation reserve \u2013 opening balance | 10 | -6,760 | 2,885 | -3,865 |
Revaluations | 1 | -2,236 | \u00a0 | -2,235 |
Realised gains / losses transferred to the profit and loss account | \u00a0 | 252 | \u00a0 | 252 |
Realised gains / losses on equity securities | \u00a0 | -208 | \u00a0 | -208 |
Changes in cash flow hedge reserve | \u00a0 | \u00a0 | -2,040 | -2,040 |
Other revaluations | \u00a0 | 1 | \u00a0 | 1 |
Accumulated revaluation reserve \u2013 closing balance | 11 | -8,951 | 845 | -8,095 |
In 2025, NN Group N.V. sold equity securities with a fair value of EUR 408 million, resulting in a realised gain (after tax) of EUR 208 million, which was transferred from the accumulated revaluations investments to other reserves.
2024 | Property revaluation reserve | Investment revaluation reserve | Cash flow hedge reserve | Total |
|---|---|---|---|---|
Accumulated revaluation reserve \u2013 opening balance | 10 | -6,967 | 2,841 | -4,116 |
Revaluations | \u00a0 | -303 | \u00a0 | -303 |
Realised gains / losses transferred to the profit and loss account | \u00a0 | 757 | \u00a0 | 757 |
Realised gains / losses on equity securities | \u00a0 | -244 | \u00a0 | -244 |
Changes in cash flow hedge reserve | \u00a0 | \u00a0 | 44 | 44 |
Other revaluations | \u00a0 | -3 | \u00a0 | -3 |
Accumulated revaluation reserve \u2013 closing balance | 10 | -6,760 | 2,885 | -3,865 |
In 2024, NN Group N.V. sold equity securities with a fair value of EUR 875 million, resulting in a realised gain (after tax) of EUR 244 million, which was transferred from the accumulated revaluations investments to other reserves.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Accumulated revaluation reserve \u2013 opening balance | 12,901 | 13,313 |
Finance result on insurance contracts recognised in Other Comprehensive Income | 3,413 | -447 |
Finance result on reinsurance contracts recognised in Other Comprehensive Income | -30 | 35 |
Accumulated revaluation reserve \u2013 closing balance | 16,284 | 12,901 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Foreign currency translation reserve \u2013 opening balance | -487 | -421 |
Unrealised revaluations after taxation | -6 | -23 |
Foreign currency exchange differences for the year | 11 | -43 |
Foreign currency translation reserve \u2013 closing balance | -482 | -487 |
Unrealised revaluations relate to changes in the value of hedging instruments that are designated as net investment hedges.
2025 | Retained | Share of | Total |
|---|---|---|---|
Other reserves \u2013 opening balance | -2,936 | 1,660 | -1,276 |
Net result for the year | 1,188 | \u00a0 | 1,188 |
Transfers from (to) share of associates reserve | -165 | 165 | 0 |
Realised gains / losses on equity securities | 208 | \u00a0 | 208 |
Dividend | -939 | \u00a0 | -939 |
Sale (purchase) of treasury shares | -298 | \u00a0 | -298 |
Employee stock option and share plans | 2 | \u00a0 | 2 |
Coupon on subordinated notes | -86 | \u00a0 | -86 |
Changes in the composition of the group and other changes | 1 | \u00a0 | 1 |
Other reserves \u2013 closing balance | -3,025 | 1,825 | -1,200 |
2024 | Retained | Share of | Total |
|---|---|---|---|
Other reserves \u2013 opening balance | -3,018 | 1,316 | -1,702 |
Net result for the year | 1,583 | \u00a0 | 1,583 |
Transfers from (to) share of associates reserve | -344 | 344 | 0 |
Realised gains / losses on equity securities | 243 | \u00a0 | 243 |
Dividend | -680 | \u00a0 | -680 |
Sale (purchase) of treasury shares | -529 | \u00a0 | -529 |
Employee stock option and share plans | 1 | \u00a0 | 1 |
Coupon on subordinated notes | -62 | \u00a0 | -62 |
Changes in the composition of the group and other changes | -130 | \u00a0 | -130 |
Other reserves \u2013 closing balance | -2,936 | 1,660 | -1,276 |
NN Group N.V. owns 51% of the shares of Nationale-Nederlanden ABN AMRO Verzekeringen Holding B.V. (ABN AMRO Verzekeringen). ABN AMRO Verzekeringen\u2019s principal place of business is Zwolle, the Netherlands.
ABN AMRO Verzekeringen is fully consolidated by NN Group N.V., with a minority interest recognised of 49%.
At 31 December 2025, the minority interest relating to ABN AMRO Verzekeringen recognised in equity was EUR 87 million (2024: EUR 78 million).
In December 2025, NN Group N.V. announced the early redemption of the outstanding EUR 1 billion 4.500% Fixed to Floating Rate Undated Subordinated Notes. The Notes were redeemed in full at their outstanding principal amount of EUR 237 million together with any interest accrued (in accordance with the terms and conditions of the Notes) on their first call date, 15 January 2026.
In March 2025, NN Group N.V. announced a tender for purchase by NN Group N.V. of the EUR 1 billion Fixed to Floating Rate Undated Subordinated Notes for cash at a price of 101.6% of the nominal amount. The tender was completed in March 2025 and NN Group N.V. accepted the purchase of EUR 763 million in nominal amount.
In March 2025 NN Group N.V. issued euro-denominated, perpetual, restricted Tier 1, temporary write-down securities for an amount of EUR 1 billion. The notes are first callable on 11 September 2034. The coupon is fixed at 5.75% per annum until 11 March 2035 and will be reset every fifth year thereafter.
In March 2024, NN Group N.V. announced a tender for purchase by NN Group N.V. of the EUR 750 million Fixed to Floating Rate Undated Subordinated Notes for cash at a price of 100.1% of the nominal amount. The tender was completed in March 2024 and NN Group N.V. accepted the purchase of EUR 287 million in nominal amount. In June 2024, NN Group N.V. additionally redeemed EUR 128 million of the EUR 750 million Fixed to Floating Rate Undated Subordinated Notes.
In March 2024,NN Group N.V. issued euro-denominated, perpetual, restricted Tier 1, temporary write-down securities for an amount of EUR 750 million. The notes are first callable as from 12 September 2030. The coupon is fixed at 6.375% per annum until 12 March 2031 and will be reset every fifth year thereafter. These securities are classified as equity under IFRS-EU. Coupon payments are distributed out of equity if and when paid or contractually due.
In July 2014, NN Group N.V. issued fixed to floating rate undated subordinated notes with a par value of EUR 1,000 million. The notes are undated but are callable after 11.5 years and every quarter thereafter (subject to regulatory approval). The coupon is fixed at 4.5% per annum for the first 11.5 years and will be floating thereafter. As these notes are undated and include optional deferral of interest at the discretion of NN Group N.V. , these are classified under IFRS-EU as equity. Coupon payments are distributed out of equity if and when paid or contractually due. The discount to the par value and certain issue costs were deducted from equity at issue, resulting in a balance sheet value equal to the net proceeds of EUR 986 million.
In June 2014, fixed to floating rate undated subordinated notes with a par value of EUR 750 million were originally issued by Delta Lloyd which are classified as equity under IFRS-EU. The notes are undated but are callable as from 13 June 2024 and every quarter thereafter (subject to regulatory approval). The coupon is fixed at 4.375% per annum until 13 June 2024 and will be floating thereafter. Coupon payments are distributed out of equity if and when paid or contractually due. These notes were recognised upon acquisition of Delta Lloyd for an amount of EUR 778 million.
During 2025, 5,358,132 ordinary shares for a total amount of EUR 298 million were repurchased under the open market share buyback programme. Treasury shares for a total amount of EUR 2 million were delivered under Employee share plans.
In 2025, 6,000,000 NN Group N.V. treasury shares were cancelled.
As at 31 December 2025, 811,127 treasury shares were held by NN Group N.V.
During 2024, 12,093,872 ordinary shares for a total amount of EUR 529 million were repurchased under the open market share buyback programme. Treasury shares for a total amount of EUR 1 million were delivered under Employee share plans. In 2024, 5,524,775 NN Group N.V. ordinary shares were delivered for the final dividend 2023.
In 2024, 16,000,000 NN Group N.V. treasury shares were cancelled.
As at 31 December 2024, 1,574,203 treasury shares were held by NN Group N.V.
2025 | Retained | Share of | Total |
|---|---|---|---|
Other reserves \u2013 opening balance | -2,936 | 1,660 | -1,276 |
Net result for the year | 1,188 | \u00a0 | 1,188 |
Transfers from (to) share of associates reserve | -165 | 165 | 0 |
Realised gains / losses on equity securities | 208 | \u00a0 | 208 |
Dividend | -939 | \u00a0 | -939 |
Sale (purchase) of treasury shares | -298 | \u00a0 | -298 |
Employee stock option and share plans | 2 | \u00a0 | 2 |
Coupon on subordinated notes | -86 | \u00a0 | -86 |
Changes in the composition of the group and other changes | 1 | \u00a0 | 1 |
Other reserves \u2013 closing balance | -3,025 | 1,825 | -1,200 |
2024 | Retained | Share of | Total |
|---|---|---|---|
Other reserves \u2013 opening balance | -3,018 | 1,316 | -1,702 |
Net result for the year | 1,583 | \u00a0 | 1,583 |
Transfers from (to) share of associates reserve | -344 | 344 | 0 |
Realised gains / losses on equity securities | 243 | \u00a0 | 243 |
Dividend | -680 | \u00a0 | -680 |
Sale (purchase) of treasury shares | -529 | \u00a0 | -529 |
Employee stock option and share plans | 1 | \u00a0 | 1 |
Coupon on subordinated notes | -62 | \u00a0 | -62 |
Changes in the composition of the group and other changes | -130 | \u00a0 | -130 |
Other reserves \u2013 closing balance | -2,936 | 1,660 | -1,276 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Dividend distributed from Other reserves | \u00a0 | \u00a0 |
Dividend paid in cash (interim current year) | 365 | 347 |
Dividend paid in cash (final previous year) | 574 | 334 |
Stock dividend (final previous year) | \u00a0 | 232 |
Total dividend | 939 | 913 |
NN Group N.V. paid an interim dividend of EUR\u00a01.38 per ordinary share, or EUR\u00a0365 million in total, calculated as 40% of the 2024 full-year dividend per ordinary share in accordance with the NN dividend policy. The interim dividend was paid fully in cash, after deduction of withholding tax if applicable.
At the Annual General Meeting on 21 May 2026, a final dividend will be proposed of EUR 2.50 per ordinary share, or approximately EUR 655 million in total based on the current number of outstanding shares (net of treasury shares). The final dividend will be paid in cash, after deduction of withholding tax if applicable. The final dividend is subject to adoption by the General Meeting at the annual general meeting to be held on 21 May 2026.
In September 2024, NN Group N.V. paid an interim dividend of EUR 1.28 per ordinary share, or approximately EUR 347 million in total based on the number of shares outstanding at the date of announcement (net of treasury shares), calculated as 40% of the 2023 full-year dividend per ordinary share in accordance with the NN Group N.V. dividend policy. The interim dividend was paid fully in cash, after deduction of withholding tax if applicable.
At the Annual General Meeting on 15 May 2025, a final dividend was adopted of EUR 2.16 per ordinary share, or EUR 574 million in total. The final dividend was paid in cash, after deduction of withholding tax if applicable.
NN Group N.V. owns 51% of the shares of Nationale-Nederlanden ABN AMRO Verzekeringen Holding B.V. (ABN AMRO Verzekeringen). ABN AMRO Verzekeringen\u2019s principal place of business is Zwolle, the Netherlands.
ABN AMRO Verzekeringen is fully consolidated by NN Group N.V., with a minority interest recognised of 49%.
At 31 December 2025, the minority interest relating to ABN AMRO Verzekeringen recognised in equity was EUR 87 million (2024: EUR 78 million).
IFRS 17 allows certain accounting policy choices and requires judgment in setting certain assumptions. The most important accounting policies and assumptions that are relevant to NN are set out below.
NN applies each of the three accounting models in IFRS 17. The General Model is the default model and is applied to traditional life insurance portfolios. The Variable Fee Approach is applied to most unit-linked portfolio\u2019s. The Variable Fee Approach is, amongst others, not applied to unit-linked portfolio\u2019s for which the guarantees were in the money at the date of the Variable Fee Approach assessment. Netherlands Non\u2011life applies the Premium Allocation Approach to P&C contracts that have a contract boundary of one year or less and to contracts where using the General Model would not produce a materially different liability for remaining coverage.
NN determines per portfolio of insurance contracts whether the effect of changes in financial assumptions, including changes in discount rates, are reflected either fully in the profit and loss account or partially in Other Comprehensive Income (OCI) in equity and partially in the profit and loss account based on a systematic allocation of the expected total net finance result over the duration of the group of contracts (the \u2018OCI option\u2019). Under the OCI option, amounts recognised in Other Comprehensive Income are recycled through profit or loss so that the amount in Other Comprehensive Income will be nil at the end of the duration of the portfolio of insurance contracts. This recycling is done by accreting interest on the insurance liability through profit or loss using a locked-in discount rate at initial recognition of the contract, which is unlocked for changes in financial assumption after initial recognition, if any. This interest accretion is presented in \u2018Finance result on (re)insurance contracts\u2019.
For contracts accounted for under the General Model and Premium Allocation Approach, in principle the OCI option is used, unless accounting for the impact of changes in financial assumptions directly in the profit and loss account resolves accounting mismatches or is otherwise preferred. For contracts accounted for under the Variable Fee Approach, the OCI option is, in principle, not applied.
Insurance contracts are aggregated per \u2018CSM group\u2019 under IFRS 17. A CSM group consists of contracts within the same portfolio, the same profitability bucket and issued in the same annual period. Contracts are in the same portfolio if these are managed together and have similar risks. NN uses at least three profitability buckets: onerous contracts, contracts that have no possibility of becoming onerous and remaining contracts. Groups of contracts issued in the same annual period are referred to as an annual cohort. For certain groups of insurance contracts additional disaggregation is applied.
Under the EU-endorsed version of IFRS 17 (IFRS-EU), certain specific insurance contracts do not need to be disaggregated by the year in which these contracts were issued (no annual cohorts). NN does not apply this IFRS-EU exemption.
If a contract would fall into a different group only because law or regulation specifically constrains NN\u2019s practical ability to set a different price or level of benefits for policyholders with different characteristics, NN includes those contracts in the same group.
For insurance products where there is uncertainty on the settlement of the claim amount, NN accounts for the uncertain claim amounts, as part of the liability for incurred claims (mostly for property and casualty insurance contracts) or as part of the liability for remaining coverage (mostly for Dutch disability and other insurance contracts).
Insurance income and expenses in the profit and loss account exclude any (non-distinct) investment components. An investment component is the amount that an insurance contract requires NN to repay to a policyholder in all circumstances, regardless of whether an insured event occurs. For products containing a surrender option for the client, the non-distinct investment component is normally based on the contractual surrender value after deduction of surrender charges.
Under the General Model, NN specifies at inception of the insurance contract the basis on which it expects to determine its commitment under the contract; for example, based on a fixed interest rate, or on returns that vary based on specified asset returns. That specification is then used to distinguish between the effect of changes in assumptions that relate to financial variables (that do not adjust the Contractual Service Margin but are recognised as finance result through profit or loss or in Other Comprehensive Income) and non-financial variables and discretionary changes to that commitment (that do adjust the Contractual Service Margin).
Under the Variable Fee Approach, the effect of changes in financial and non-financial assumptions on the net present value of future cash flows (not stemming from changes in the policyholders\u2019 share of the underlying items) adjust the Contractual Service Margin using current discount rates. Changes in the underlying items are included in \u2018Finance result on (re)insurance contracts\u2019 in the profit and loss account. Changes in estimates that adjust the Contractual Service Margin exclude the changes in value of options and guarantees of contracts accounted for under the Variable Fee Approach that are hedged for which the Risk mitigation option is applied. These are reflected in \u2018Finance result on (re)insurance contracts\u2019 in the profit and loss account.
NN applies a year-to-date approach, i.e. NN changes the treatment of previous accounting estimates made when reporting over the year.
A loss component is formed for contracts that are or have become onerous. The loss component will change over time due to, amongst others, interest accretion, changes in estimates and a systematic allocation of the release of expected claims, expenses and risk adjustment.
Insurance related receivables and payables including policy loans are presented as part of the insurance contracts. NN considers premiums receivables from intermediaries and tied agents to be future cash flows within the boundary of an insurance contract.
NN recognises an asset for any directly attributable insurance acquisition costs incurred relating to groups of to be recognised insurance contracts or their renewals (with the exception of contracts measured under the Premium Allocation Approach with a coverage period of one year or less where the acquisition costs are expensed immediately in the profit and loss account). The asset for incurred acquisition costs to be attributed to insurance contracts is derecognised when groups of insurance contracts to which the insurance acquisition costs are allocated, are recognised.
For traditional life insurance contracts, certain types of flexible life insurance contracts and non-life insurance contracts with a coverage period of over one year, the amortisation of acquisition costs takes place over the premium payment period in proportion to the revenue recognised. For other types of flexible life insurance contracts, the acquisition costs are amortised over the duration of the policies in relation to the emergence of estimated profits. Amortisation is adjusted when estimates of current or future profits, to be realised from a group of insurance contracts, are revised.
NN used each of the transition approaches in IFRS 17. In the modified retrospective transition approach, NN used mainly the modifications for historical cash flows, the historical release of the risk adjustment and determining groups of contracts. The modified retrospective approach is applied to certain portfolios in the Insurance Europe and Netherland Non-life segments. In the fair value transition approach, the Contractual Service Margin is determined by reference to the fair value of insurance liabilities. Fair value is determined similar to fulfilment value, except that no group diversification is reflected in the risk adjustment, the cost of capital rate in the risk adjustment is set at 6% and expenses also include non-directly attributable expenses. The fair value transition approach is applied to, amongst others, portfolios in Netherlands Life.
NN uses the OCI option as described above, but set the amount in Other Comprehensive Income at transition date (1 January 2022) to nil under the modified or fair value transition approach for certain portfolios (i.e. for which it was not practicable to determine the amount in Other Comprehensive Income retrospectively). General account assets are considered to be one pool of assets, backing (part of some and all of other) insurance contracts and NN equity. Consequentially, the Investment revaluation reserve of those assets cannot be allocated specifically to insurance contracts for which the amount in Other Comprehensive Income was set to nil at the transition date.
Coverage units are determined based on the expected insurance contract services. The insurance contract services are determined considering the (weighted) quantity of the benefits provided from insurance and investment (return/related) services. For insurance services, the quantity of benefits can, amongst others, be based on the maximum amount a policyholder might validly claim during a certain period. For investment services, the quantity of benefits can, amongst others, be based on the account value of underlying assets. The total amount of coverage units for a group of insurance contracts is the probability weighted present value of the insurance contract services. Expected policies in force are used to determine the expected duration.
In the segment Netherlands Non-life qualifying insurance contracts are measured and reported under the Premium Allocation Approach. When using the Premium Allocation Approach, future cash flows related to the Liability for Remaining Coverage (i.e. the unearned premium reserve) are not adjusted for the time value of money and the effect of financial risk (if at initial recognition, it is expected that the time between providing each part of the coverage and the related premium due date is no more than one year). NN adjusts future cash flows related to the liability for incurred claims for the time value of money and the effect of financial risk. NN accounts for the acquisition costs directly in the profit and loss account when incurred, if the coverage period is no more than one year.
Estimates of future cash flows reflect mortality and morbidity assumptions that are internally developed and calibrated to NN\u2019s own experience, reflecting the characteristics of the relevant portfolio. National mortality tables published by relevant actuarial or statistical bodies are used as benchmarks. Future projected mortality improvements (generation mortality tables) are also reflected in the assumption tables and are determined internally. Where possible, mortality and morbidity assumptions are country, age, gender and sometimes product group specific. Assumptions for reinstatement rates and incidence rates are most material at NN Non-life. These assumptions are calibrated based on own experience reflecting the characteristics of the relevant portfolio. Reinstatement rates are duration dependent.
Mortality and longevity assumptions are most material at Netherlands Life. The approach to developing these assumptions internally at Netherlands Life is as follows. The mortality experience from Netherlands Life\u2019s portfolio is used for setting the baseline assumptions at the level of age, gender and homogenous risk groups. Own experience is used because an insured portfolio has structurally a different mortality experience than the general population. The internal model for future trends of mortality improvements uses a blend of national and EU mortality data and the improvement rates are defined per age and gender. Experience (both for own portfolio and national populations) is monitored through regular studies (at least on annual basis) and reflected in the measurement of insurance contracts. For the baseline assumptions calendar years are used for which the mortality experience is complete and as of 2023 a return to pre-Covid-19 mortality rates expectations is projected in an approach similar to AG 2024 methodology (i.e. exponential reduction over time of the excess mortality generated by Covid-19).
Expenses that are considered directly attributable are allocated to groups of insurance contracts, and estimates of these expected future expense cash flows are included in the insurance liability as a component of the fulfilment value. Non-attributable expenses are recognised directly in the profit and loss account when incurred. In principle, expenses that are necessary to serve the policyholder (including expenses to meet regulatory requirements as insurance company) are directly attributable whereas other expenses (i.e. corporate expenses) are not. For the projection of attributable expense to the future, expense inflation assumptions are applied. These take into account expected price inflation (derived where possible from observable market inputs), which is adjusted where necessary to take into account portfolio and business specific factors. Inflation regarding expense assumptions is considered a financial assumption if contractually or legally linked to observable market inputs.
Lapse, cancellation and surrender assumptions reflect the expected policyholder behaviour. As such the rates, which are business unit specific, usually depend on issue year, policy year, major product lines and sales channels. These rates are typically calibrated based on own experience. Such granularity is usually enough to capture how the product terms and conditions as well as regulations can influence the timing and volume of lapse and surrenders. Calendar year based adjustments and dynamic policyholder behaviour are considered when needed in specific circumstances.
NN also uses other assumptions that reflect the characteristics of the relevant portfolio of insurance contracts, including expected retirement ages and wage benefit levels.
Discount rates are determined using a liquid risk-free curve to which an illiquidity premium is added. The liquid risk-free curve is set per currency, while the illiquidity premium is determined per entity using an approach that reflects the characteristics of the current assets of that entity. Spreads used in the illiquidity premium are derived from fixed income assets using Z-spreads. The total asset spread is adjusted for expected and unexpected credit losses.
For the Euro currency, the risk-free curve is based on the swap rate and includes a last liquid point (LLP) of 30 years and a long-term forward rate (LTFR). At 31 December 2025 the LTFR was 3.20% (31 December 2024: 3.20%).
The table below sets out the yield curves used to discount the cash flows of insurance contracts for NN\u2019s largest segment, Netherlands Life.
| \u00a0 | General Model | Variable Fee Approach | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
1 year | 2.7% | 3.2% | 2.2% | 2.3% |
5 years | 3.1% | 3.1% | 2.5% | 2.2% |
10 years | 3.5% | 3.2% | 2.9% | 2.3% |
20 years | 3.8% | 3.2% | 3.3% | 2.3% |
30 years | 3.8% | 2.9% | 3.2% | 2.1% |
40 years | 3.7% | 2.9% | 3.2% | 2.1% |
For the other insurance segments within the group, the same risk-free curve is used, but the illiquidity premium is derived from the asset portfolios for the specific entities, resulting in a range of yield curves used.
The risk adjustment for non-financial risk is determined using the cost of capital methodology based on the Solvency II internal model or standard formula for Solvency II entities and an own (internal) model for economic capital for non-Solvency II insurance entities within the Group. The risk adjustment reflects diversification among non-market risks and with market risks within the entity as well as diversification with other entities within NN (Group diversification). The cost of capital rate represents NN\u2019s view on the compensation required for bearing non-financial risk; the cost of capital rate used in the fulfilment value of insurance liabilities is 4%. Changes in the risk adjustment related to changes in estimates of financial risk are disaggregated to Other Comprehensive Income if the OCI option is applied to the specific portfolio. The implied confidence levels are determined both for a one-year and an ultimate view, gross of reinsurance, using a normal distribution to translate economic capital to confidence level.
| \u00a0 | One year view | Ultimate view | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Life | 86% | 89% | 67% | 69% |
Non-life | 67% | 69% | 62% | 62% |
2025 | General Model | Variable Fee Approach | Total General Model and Variable Fee Approach | Premium Allocation Approach | Total |
|---|---|---|---|---|---|
Life insurance contracts for risk of company | 86,812 | 1,775 | 88,587 | \u00a0 | 88,587 |
Life insurance contracts for risk of policyholders | 6,023 | 39,030 | 45,053 | \u00a0 | 45,053 |
Life insurance contracts | 92,835 | 40,805 | 133,640 | 0 | 133,640 |
Non-life contracts for remaining coverage | 4,039 | \u00a0 | 4,039 | 248 | 4,287 |
Non-life contracts for incurred claims and benefits | 85 | \u00a0 | 85 | 2,448 | 2,533 |
Non-life insurance contracts | 4,124 | 0 | 4,124 | 2,696 | 6,820 |
Total insurance contracts | 96,959 | 40,805 | 137,764 | 2,696 | 140,460 |
\u2013 of which presented as assets | 474 | 6 | 480 | \u00a0 | 480 |
\u2013 of which presented as liabilities | 97,433 | 40,811 | 138,244 | 2,696 | 140,940 |
Total insurance contracts | 96,959 | 40,805 | 137,764 | 2,696 | 140,460 |
2024 | General Model | Variable Fee Approach | Total General Model and Variable Fee Approach | Premium Allocation Approach | Total |
|---|---|---|---|---|---|
Life insurance contracts for risk of company | 95,796 | 1,953 | 97,749 | 1 | 97,750 |
Life insurance contracts for risk of policyholders | 6,239 | 36,523 | 42,762 | \u00a0 | 42,762 |
Life insurance contracts | 102,035 | 38,476 | 140,511 | 1 | 140,512 |
Non-life contracts for remaining coverage | 3,948 | \u00a0 | 3,948 | 225 | 4,173 |
Non-life contracts for incurred claims and benefits | 111 | \u00a0 | 111 | 2,336 | 2,447 |
Non-life insurance contracts | 4,059 | 0 | 4,059 | 2,561 | 6,620 |
Total insurance contracts | 106,094 | 38,476 | 144,570 | 2,562 | 147,132 |
\u2013 of which presented as assets | 409 | \u00a0 | 409 | \u00a0 | 409 |
\u2013 of which presented as liabilities | 106,503 | 38,476 | 144,979 | 2,562 | 147,541 |
Total insurance contracts | 106,094 | 38,476 | 144,570 | 2,562 | 147,132 |
2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | 1,158 | -89 | -660 | 409 |
\u2013 opening balance presented as liabilities | 136,489 | 1,200 | 7,290 | 144,979 |
Net opening balance | 135,331 | 1,289 | 7,950 | 144,570 |
\u2013 insurance contracts initially recognised in the year | -828 | 83 | 788 | 43 |
\u2013 changes in estimates that adjust the contractual service margin | -1,243 | 137 | 1,106 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 42 | -9 | \u00a0 | 33 |
Changes that relate to future service | -2,029 | 211 | 1,894 | 76 |
\u2013 release to profit or loss | \u00a0 | -142 | -999 | -1,141 |
\u2013 experience adjustments not adjusting the contractual service margin | -88 | \u00a0 | \u00a0 | -88 |
Changes that relate to current service | -88 | -142 | -999 | -1,229 |
\u2013 changes in incurred claims and benefits previous years | 5 | -1 | \u00a0 | 4 |
Changes that relate to past service | 5 | -1 | 0 | 4 |
\u2013 finance result through profit or loss | 3,977 | 29 | 92 | 4,098 |
\u2013 finance result recognised in OCI | -4,534 | -148 | \u00a0 | -4,682 |
Finance result on insurance contracts | -557 | -119 | 92 | -584 |
\u2013 premiums received | 10,260 | \u00a0 | \u00a0 | 10,260 |
\u2013 acquisition costs paid | -673 | \u00a0 | \u00a0 | -673 |
\u2013 claims, benefits and attributable expenses paid | -13,382 | \u00a0 | \u00a0 | -13,382 |
\u2013 changes in the composition of the group and other changes | -3 | \u00a0 | -5 | -8 |
Cash flows | -3,798 | 0 | -5 | -3,803 |
Other movements | 3 | -2 | \u00a0 | 1 |
Foreign currency exchange differences | -1,156 | -31 | -84 | -1,271 |
Net closing balance | 127,711 | 1,205 | 8,848 | 137,764 |
\u2013 closing balance presented as assets | 1,378 | -100 | -798 | 480 |
\u2013 closing balance presented as liabilities | 129,089 | 1,105 | 8,050 | 138,244 |
Net closing balance | 127,711 | 1,205 | 8,848 | 137,764 |
2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | 778 | -70 | -353 | 355 |
\u2013 opening balance presented as liabilities | 134,158 | 1,730 | 6,619 | 142,507 |
Net opening balance | 133,380 | 1,800 | 6,972 | 142,152 |
\u2013 insurance contracts initially recognised in the year | -709 | 101 | 659 | 51 |
\u2013 changes in estimates that adjust the contractual service margin | -475 | -630 | 1,105 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -2 | -76 | \u00a0 | -78 |
Changes that relate to future service | -1,186 | -605 | 1,764 | -27 |
\u2013 release to profit or loss | \u00a0 | -134 | -857 | -991 |
\u2013 experience adjustments not adjusting the contractual service margin | -46 | -1 | \u00a0 | -47 |
Changes that relate to current service | -46 | -135 | -857 | -1,038 |
\u2013 changes in incurred claims and benefits previous years | -17 | \u00a0 | \u00a0 | -17 |
Changes that relate to past service | -17 | 0 | 0 | -17 |
\u2013 finance result through profit or loss | 6,578 | 38 | 79 | 6,695 |
\u2013 finance result recognised in OCI | 357 | 203 | 1 | 561 |
Finance result on insurance contracts | 6,935 | 241 | 80 | 7,256 |
\u2013 premiums received1 | 11,200 | \u00a0 | \u00a0 | 11,200 |
\u2013 acquisition costs paid | -637 | \u00a0 | \u00a0 | -637 |
\u2013 claims, benefits and attributable expenses paid | -13,634 | \u00a0 | \u00a0 | -13,634 |
Cash flows | -3,071 | 0 | 0 | -3,071 |
Other movements | -3 | \u00a0 | 47 | 44 |
Foreign currency exchange differences | -661 | -12 | -56 | -729 |
Net closing balance | 135,331 | 1,289 | 7,950 | 144,570 |
\u2013 closing balance presented as assets | 1,158 | -89 | -660 | 409 |
\u2013 closing balance presented as liabilities | 136,489 | 1,200 | 7,290 | 144,979 |
Net closing balance | 135,331 | 1,289 | 7,950 | 144,570 |
Reference is made to Note 29 Insurance contracts by segment for the insurance contracts under General Model and Variable Fee Approach by segment.
2025 | Onerous Insurance contracts issued | Other Insurance contracts issued | Insurance contracts acquired | Total Insurance contracts initially recognised |
|---|---|---|---|---|
Estimates of the present value of future cash inflows | -630 | -7,351 | \u00a0 | -7,981 |
\u2013 acquisition costs | 31 | 556 | \u00a0 | 587 |
\u2013 claims, benefits and attributable expenses | 639 | 5,927 | \u00a0 | 6,566 |
Estimates of the present value of future cash outflows | 670 | 6,483 | 0 | 7,153 |
Risk adjustment | 3 | 80 | \u00a0 | 83 |
Contractual service margin | \u00a0 | 788 | \u00a0 | 788 |
Total insurance contracts initially recognised in the year | 43 | 0 | 0 | 43 |
2024 | Onerous Insurance contracts issued | Other Insurance contracts issued | Insurance contracts acquired | Total Insurance contracts initially recognised |
|---|---|---|---|---|
Estimates of the present value of future cash inflows | -719 | -6,876 | 0 | -7,595 |
\u2013 acquisition costs | 31 | 508 | \u00a0 | 539 |
\u2013 claims, benefits and attributable expenses | 732 | 5,615 | \u00a0 | 6,347 |
Estimates of the present value of future cash outflows | 763 | 6,123 | 0 | 6,886 |
Risk adjustment | 7 | 94 | \u00a0 | 101 |
Contractual service margin | \u00a0 | 659 | \u00a0 | 659 |
Total insurance contracts initially recognised in the year | 51 | 0 | 0 | 51 |
Fair value of underlying items | 2025 | 2024 |
|---|---|---|
\u2013 debt securities | 611 | 766 |
\u2013 equity securities and investment funds | 42,073 | 39,534 |
\u2013 loans and other | 2,369 | 2,462 |
Total | 45,053 | 42,762 |
2025 | Contract issued after transition and full retrospective approach | Modified retrospective approach | Fair value approach | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
Disaggregation of the contractual service margin by transition approach - opening balance | 2,508 | 755 | 4,687 | 7,950 |
\u2013 insurance contracts initially recognised in the year | 788 | \u00a0 | \u00a0 | 788 |
\u2013 changes in estimates that adjust the contractual service margin | 116 | 55 | 935 | 1,106 |
Changes that relate to future service | 904 | 55 | 935 | 1,894 |
\u2013 release to profit or loss | -430 | -124 | -445 | -999 |
Changes that relate to current service | -430 | -124 | -445 | -999 |
Finance result | 48 | 8 | 36 | 92 |
Finance result through profit or loss | 48 | 8 | 36 | 92 |
Other movements | -5 | \u00a0 | \u00a0 | -5 |
Foreign currency exchange differences | -50 | -18 | -16 | -84 |
Disaggregation of the contractual service margin by transition approach - closing balance | 2,975 | 676 | 5,197 | 8,848 |
2024 | Contract issued after transition and full retrospective approach | Modified retrospective approach | Fair value approach | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
Disaggregation of the contractual service margin by transition approach - opening balance | 1,983 | 824 | 4,165 | 6,972 |
\u2013 insurance contracts initially recognised in the year | 659 | \u00a0 | \u00a0 | 659 |
\u2013 changes in estimates that adjust the contractual service margin | 213 | 69 | 823 | 1,105 |
Changes that relate to future service | 872 | 69 | 823 | 1,764 |
\u2013 release to profit or loss | -365 | -138 | -354 | -857 |
Changes that relate to current service | -365 | -138 | -354 | -857 |
Finance result | 40 | 9 | 31 | 80 |
Finance result through profit or loss | 40 | 9 | 31 | 80 |
Other movements | 16 | \u00a0 | 31 | 47 |
Foreign currency exchange differences | -38 | -9 | -9 | -56 |
Disaggregation of the contractual service margin by transition approach - closing balance | 2,508 | 755 | 4,687 | 7,950 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Less than 1 year | 893 | 687 |
1-2 years | 760 | 590 |
2-3 years | 681 | 529 |
3-4 years | 619 | 479 |
4-5 years | 561 | 440 |
5-10 years | 2,023 | 1,627 |
Over 10 years | 3,311 | 3,598 |
Total | 8,848 | 7,950 |
The Contractual Service Margin by remaining term provides the expected maturity of the balance sheet amount of the Contractual Service Margin at the end of the period. The actual release of the Contractual Service Margin that will be recognised in the profit and loss account in future years will differ as the release in future years will be impacted by the future development of the Contractual Service Margin due to new contracts sold, interest accreted and changes in estimates.
| \u00a0 | Liability for remaining coverage | Liability for incurred claims and benefits | Total General Model and Variable Fee Approach | |
|---|---|---|---|---|
2025 | Remaining coverage | Loss component | \u00a0 | \u00a0 |
\u2013 opening balance presented as assets | 469 | -9 | -51 | 409 |
\u2013 opening balance presented as liabilities | 143,127 | 263 | 1,589 | 144,979 |
Net opening balance | 142,658 | 272 | 1,640 | 144,570 |
\u2013 release of contractual service margin | -999 | \u00a0 | \u00a0 | -999 |
\u2013 release of risk adjustment | -142 | \u00a0 | \u00a0 | -142 |
\u2013 expected claims and benefits | -5,600 | \u00a0 | \u00a0 | -5,600 |
\u2013 expected attributable expenses | -1,304 | \u00a0 | \u00a0 | -1,304 |
\u2013 recovery of acquisition costs | -432 | \u00a0 | \u00a0 | -432 |
\u2013 experience adjustments for premiums that relate to current or past service | -17 | \u00a0 | \u00a0 | -17 |
Insurance income | -8,494 | 0 | 0 | -8,494 |
\u2013 incurred claims and benefits | \u00a0 | \u00a0 | 5,550 | 5,550 |
\u2013 incurred attributable expenses | \u00a0 | \u00a0 | 1,322 | 1,322 |
\u2013 amortisation of acquisition costs | 432 | \u00a0 | \u00a0 | 432 |
\u2013 changes in incurred claims and benefits previous years | \u00a0 | \u00a0 | 4 | 4 |
\u2013 (reversal of) losses on onerous contracts | \u00a0 | 37 | \u00a0 | 37 |
Insurance expenses | 432 | 37 | 6,876 | 7,345 |
Investment components excluded from insurance expenses and insurance income | -6,397 | \u00a0 | 6,397 | 0 |
\u2013 finance result through profit or loss | 4,110 | 3 | -15 | 4,098 |
\u2013 finance result recognised in OCI | -4,689 | \u00a0 | 7 | -4,682 |
Finance result on insurance contracts | -579 | 3 | -8 | -584 |
\u2013 premiums received | 10,260 | \u00a0 | \u00a0 | 10,260 |
\u2013 acquisition costs paid | -673 | \u00a0 | \u00a0 | -673 |
\u2013 claims, benefits and attributable expenses paid | \u00a0 | \u00a0 | -13,382 | -13,382 |
\u2013 changes in the composition of the group and other changes | -5 | -2 | -1 | -8 |
Cash flows | 9,582 | -2 | -13,383 | -3,803 |
Other movements | \u00a0 | \u00a0 | 1 | 1 |
Foreign currency exchange differences | -1,211 | -1 | -59 | -1,271 |
Net closing balance | 135,991 | 309 | 1,464 | 137,764 |
\u2013 closing balance presented as assets | 542 | -8 | -54 | 480 |
\u2013 closing balance presented as liabilities | 136,533 | 301 | 1,410 | 138,244 |
Net closing balance | 135,991 | 309 | 1,464 | 137,764 |
Remaining coverage includes risk adjustment and contractual service margin.
| \u00a0 | Liability for remaining coverage | Liability for incurred claims and benefits | Total General Model and Variable Fee Approach | |
|---|---|---|---|---|
2024 | Remaining coverage | Loss component | \u00a0 | \u00a0 |
\u2013 opening balance presented as assets | 391 | -6 | -30 | 355 |
\u2013 opening balance presented as liabilities | 140,190 | 315 | 2,002 | 142,507 |
Net opening balance | 139,799 | 321 | 2,032 | 142,152 |
\u2013 release of contractual service margin | -857 | \u00a0 | \u00a0 | -857 |
\u2013 release of risk adjustment | -134 | \u00a0 | \u00a0 | -134 |
\u2013 expected claims and benefits | -5,139 | \u00a0 | \u00a0 | -5,139 |
\u2013 expected attributable expenses | -1,280 | \u00a0 | \u00a0 | -1,280 |
\u2013 recovery of acquisition costs | -415 | \u00a0 | \u00a0 | -415 |
\u2013 experience adjustments for premiums that relate to current or past service | -18 | \u00a0 | \u00a0 | -18 |
Insurance income | -7,843 | 0 | 0 | -7,843 |
\u2013 incurred claims and benefits | \u00a0 | \u00a0 | 5,110 | 5,110 |
\u2013 incurred attributable expenses | \u00a0 | \u00a0 | 1,298 | 1,298 |
\u2013 amortisation of acquisition costs | 415 | \u00a0 | \u00a0 | 415 |
\u2013 changes in incurred claims and benefits previous years | \u00a0 | \u00a0 | -17 | -17 |
\u2013 (reversal of) losses on onerous contracts | \u00a0 | -45 | \u00a0 | -45 |
Insurance expenses | 415 | -45 | 6,391 | 6,761 |
Investment components excluded from insurance expenses and insurance income | -6,894 | \u00a0 | 6,894 | 0 |
\u2013 finance result through profit or loss | 6,678 | 4 | 13 | 6,695 |
\u2013 finance result recognised in OCI | 592 | \u00a0 | -31 | 561 |
Finance result on insurance contracts | 7,270 | 4 | -18 | 7,256 |
\u2013 premiums received | 11,200 | \u00a0 | \u00a0 | 11,200 |
\u2013 acquisition costs paid | -637 | \u00a0 | \u00a0 | -637 |
\u2013 claims, benefits and attributable expenses paid | \u00a0 | \u00a0 | -13,634 | -13,634 |
Cash flows | 10,563 | 0 | -13,634 | -3,071 |
Other movements | 51 | -8 | 1 | 44 |
Foreign currency exchange differences | -703 | \u00a0 | -26 | -729 |
Net closing balance | 142,658 | 272 | 1,640 | 144,570 |
\u2013 closing balance presented as assets | 469 | -9 | -51 | 409 |
\u2013 closing balance presented as liabilities | 143,127 | 263 | 1,589 | 144,979 |
Net closing balance | 142,658 | 272 | 1,640 | 144,570 |
Remaining coverage includes risk adjustment and contractual service margin.
| \u00a0 | Liability for remaining coverage | Liability for incurred claims and benefits | Total Premium Allocation Approach | ||
|---|---|---|---|---|---|
2025 | Remaining coverage | Loss component | Estimates of the present value of future cash flows | Risk adjustment | \u00a0 |
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 225 | 2 | 2,295 | 40 | 2,562 |
Net opening balance | 225 | 2 | 2,295 | 40 | 2,562 |
Insurance income | -3,023 | \u00a0 | \u00a0 | \u00a0 | -3,023 |
\u2013 incurred claims and benefits | \u00a0 | \u00a0 | 1,570 | 5 | 1,575 |
\u2013 incurred attributable expenses | \u00a0 | \u00a0 | 944 | \u00a0 | 944 |
\u2013 amortisation of acquisition costs | 4 | \u00a0 | \u00a0 | \u00a0 | 4 |
\u2013 changes in incurred claims and benefits previous years | \u00a0 | \u00a0 | -21 | 59 | 38 |
\u2013 (reversal of) losses on onerous contracts | \u00a0 | 2 | \u00a0 | \u00a0 | 2 |
Insurance expenses | 4 | 2 | 2,493 | 64 | 2,563 |
\u2013 finance result through profit or loss | \u00a0 | \u00a0 | 36 | \u00a0 | 36 |
\u2013 finance result recognised in OCI | \u00a0 | \u00a0 | 5 | \u00a0 | 5 |
Finance result on insurance contracts | 0 | 0 | 41 | 0 | 41 |
\u2013 premiums received | 3,044 | \u00a0 | \u00a0 | \u00a0 | 3,044 |
\u2013 acquisition costs paid | -4 | \u00a0 | \u00a0 | \u00a0 | -4 |
\u2013 claims, benefits and attributable expenses paid | \u00a0 | \u00a0 | -2,486 | \u00a0 | -2,486 |
Cash flows | 3,040 | 0 | -2,486 | 0 | 554 |
Foreign currency exchange differences | 1 | \u00a0 | 1 | -3 | -1 |
Net closing balance | 247 | 4 | 2,344 | 101 | 2,696 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 247 | 4 | 2,344 | 101 | 2,696 |
Net closing balance | 247 | 4 | 2,344 | 101 | 2,696 |
| \u00a0 | Liability for remaining coverage | Liability for incurred claims and benefits | Total Premium Allocation Approach | ||
|---|---|---|---|---|---|
2024 | Remaining coverage | Loss component | Estimates of the present value of future cash flows | Risk adjustment | \u00a0 |
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 217 | 2 | 2,295 | 43 | 2,557 |
Net opening balance | 217 | 2 | 2,295 | 43 | 2,557 |
Insurance income | -2,863 | \u00a0 | \u00a0 | \u00a0 | -2,863 |
\u2013 incurred claims and benefits | \u00a0 | \u00a0 | 1,498 | 4 | 1,502 |
\u2013 incurred attributable expenses | \u00a0 | \u00a0 | 922 | \u00a0 | 922 |
\u2013 amortisation of acquisition costs | 5 | \u00a0 | \u00a0 | \u00a0 | 5 |
\u2013 changes in incurred claims and benefits previous years | \u00a0 | \u00a0 | 55 | -9 | 46 |
\u2013 other insurance expenses | \u00a0 | \u00a0 | 1 | \u00a0 | 1 |
Insurance expenses | 5 | 0 | 2,476 | -5 | 2,476 |
\u2013 finance result through profit or loss | \u00a0 | \u00a0 | 30 | \u00a0 | 30 |
\u2013 finance result recognised in OCI | \u00a0 | \u00a0 | 44 | \u00a0 | 44 |
Finance result on insurance contracts | 0 | 0 | 74 | 0 | 74 |
\u2013 premiums received | 2,872 | \u00a0 | \u00a0 | \u00a0 | 2,872 |
\u2013 acquisition costs paid | -5 | \u00a0 | \u00a0 | \u00a0 | -5 |
\u2013 claims, benefits and attributable expenses paid | \u00a0 | \u00a0 | -2,549 | \u00a0 | -2,549 |
Cash flows | 2,867 | 0 | -2,549 | 0 | 318 |
Foreign currency exchange differences | -1 | \u00a0 | -1 | 2 | 0 |
Net closing balance | 225 | 2 | 2,295 | 40 | 2,562 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 225 | 2 | 2,295 | 40 | 2,562 |
Net closing balance | 225 | 2 | 2,295 | 40 | 2,562 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Accident year | \u00a0 |
|---|---|---|---|---|---|---|---|---|---|
| \u00a0 | 20181 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total |
Estimate of cumulative claims | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
At the end of accident year | 1,358 | 1,217 | 1,535 | 1,378 | 1,556 | 1,410 | 1,557 | 1,634 | \u00a0 |
1 year later | 1,341 | 1,324 | 1,436 | 1,364 | 1,515 | 1,523 | 1,588 | \u00a0 | \u00a0 |
2 years later | 1,403 | 1,332 | 1,440 | 1,310 | 1,520 | 1,509 | \u00a0 | \u00a0 | \u00a0 |
3 years later | 1,437 | 1,338 | 1,380 | 1,314 | 1,529 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
4 years later | 1,401 | 1,323 | 1,380 | 1,313 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
5 years later | 1,372 | 1,321 | 1,369 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
6 years later | 1,381 | 1,320 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
7 years later | 1,373 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Estimate of cumulative claims | 1,373 | 1,320 | 1,369 | 1,313 | 1,529 | 1,509 | 1,588 | 1,634 | 11,635 |
Cumulative payments | -1,304 | -1,220 | -1,257 | -1,170 | -1,317 | -1,238 | -1,192 | -756 | -9,454 |
Total (estimate) of cumulative claims and payments | 69 | 100 | 112 | 143 | 212 | 271 | 396 | 878 | 2,181 |
Effect of discounting | -7 | -10 | -11 | -14 | -20 | -27 | -38 | -58 | -185 |
Liabilities recognised | 62 | 90 | 101 | 129 | 192 | 244 | 358 | 820 | 1,996 |
Liabilities relating to accident years prior to 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 263 |
LIC expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 85 |
Risk adjustment | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 101 |
Total liability for incurred claims and benefits Premium Allocation Approach2 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,445 |
IFRS 17 allows certain accounting policy choices and requires judgment in setting certain assumptions. The most important accounting policies and assumptions that are relevant to NN are set out below.
NN applies each of the three accounting models in IFRS 17. The General Model is the default model and is applied to traditional life insurance portfolios. The Variable Fee Approach is applied to most unit-linked portfolio\u2019s. The Variable Fee Approach is, amongst others, not applied to unit-linked portfolio\u2019s for which the guarantees were in the money at the date of the Variable Fee Approach assessment. Netherlands Non\u2011life applies the Premium Allocation Approach to P&C contracts that have a contract boundary of one year or less and to contracts where using the General Model would not produce a materially different liability for remaining coverage.
NN determines per portfolio of insurance contracts whether the effect of changes in financial assumptions, including changes in discount rates, are reflected either fully in the profit and loss account or partially in Other Comprehensive Income (OCI) in equity and partially in the profit and loss account based on a systematic allocation of the expected total net finance result over the duration of the group of contracts (the \u2018OCI option\u2019). Under the OCI option, amounts recognised in Other Comprehensive Income are recycled through profit or loss so that the amount in Other Comprehensive Income will be nil at the end of the duration of the portfolio of insurance contracts. This recycling is done by accreting interest on the insurance liability through profit or loss using a locked-in discount rate at initial recognition of the contract, which is unlocked for changes in financial assumption after initial recognition, if any. This interest accretion is presented in \u2018Finance result on (re)insurance contracts\u2019.
For contracts accounted for under the General Model and Premium Allocation Approach, in principle the OCI option is used, unless accounting for the impact of changes in financial assumptions directly in the profit and loss account resolves accounting mismatches or is otherwise preferred. For contracts accounted for under the Variable Fee Approach, the OCI option is, in principle, not applied.
Insurance contracts are aggregated per \u2018CSM group\u2019 under IFRS 17. A CSM group consists of contracts within the same portfolio, the same profitability bucket and issued in the same annual period. Contracts are in the same portfolio if these are managed together and have similar risks. NN uses at least three profitability buckets: onerous contracts, contracts that have no possibility of becoming onerous and remaining contracts. Groups of contracts issued in the same annual period are referred to as an annual cohort. For certain groups of insurance contracts additional disaggregation is applied.
Under the EU-endorsed version of IFRS 17 (IFRS-EU), certain specific insurance contracts do not need to be disaggregated by the year in which these contracts were issued (no annual cohorts). NN does not apply this IFRS-EU exemption.
If a contract would fall into a different group only because law or regulation specifically constrains NN\u2019s practical ability to set a different price or level of benefits for policyholders with different characteristics, NN includes those contracts in the same group.
For insurance products where there is uncertainty on the settlement of the claim amount, NN accounts for the uncertain claim amounts, as part of the liability for incurred claims (mostly for property and casualty insurance contracts) or as part of the liability for remaining coverage (mostly for Dutch disability and other insurance contracts).
Insurance income and expenses in the profit and loss account exclude any (non-distinct) investment components. An investment component is the amount that an insurance contract requires NN to repay to a policyholder in all circumstances, regardless of whether an insured event occurs. For products containing a surrender option for the client, the non-distinct investment component is normally based on the contractual surrender value after deduction of surrender charges.
Under the General Model, NN specifies at inception of the insurance contract the basis on which it expects to determine its commitment under the contract; for example, based on a fixed interest rate, or on returns that vary based on specified asset returns. That specification is then used to distinguish between the effect of changes in assumptions that relate to financial variables (that do not adjust the Contractual Service Margin but are recognised as finance result through profit or loss or in Other Comprehensive Income) and non-financial variables and discretionary changes to that commitment (that do adjust the Contractual Service Margin).
Under the Variable Fee Approach, the effect of changes in financial and non-financial assumptions on the net present value of future cash flows (not stemming from changes in the policyholders\u2019 share of the underlying items) adjust the Contractual Service Margin using current discount rates. Changes in the underlying items are included in \u2018Finance result on (re)insurance contracts\u2019 in the profit and loss account. Changes in estimates that adjust the Contractual Service Margin exclude the changes in value of options and guarantees of contracts accounted for under the Variable Fee Approach that are hedged for which the Risk mitigation option is applied. These are reflected in \u2018Finance result on (re)insurance contracts\u2019 in the profit and loss account.
NN applies a year-to-date approach, i.e. NN changes the treatment of previous accounting estimates made when reporting over the year.
A loss component is formed for contracts that are or have become onerous. The loss component will change over time due to, amongst others, interest accretion, changes in estimates and a systematic allocation of the release of expected claims, expenses and risk adjustment.
Insurance related receivables and payables including policy loans are presented as part of the insurance contracts. NN considers premiums receivables from intermediaries and tied agents to be future cash flows within the boundary of an insurance contract.
NN recognises an asset for any directly attributable insurance acquisition costs incurred relating to groups of to be recognised insurance contracts or their renewals (with the exception of contracts measured under the Premium Allocation Approach with a coverage period of one year or less where the acquisition costs are expensed immediately in the profit and loss account). The asset for incurred acquisition costs to be attributed to insurance contracts is derecognised when groups of insurance contracts to which the insurance acquisition costs are allocated, are recognised.
For traditional life insurance contracts, certain types of flexible life insurance contracts and non-life insurance contracts with a coverage period of over one year, the amortisation of acquisition costs takes place over the premium payment period in proportion to the revenue recognised. For other types of flexible life insurance contracts, the acquisition costs are amortised over the duration of the policies in relation to the emergence of estimated profits. Amortisation is adjusted when estimates of current or future profits, to be realised from a group of insurance contracts, are revised.
NN used each of the transition approaches in IFRS 17. In the modified retrospective transition approach, NN used mainly the modifications for historical cash flows, the historical release of the risk adjustment and determining groups of contracts. The modified retrospective approach is applied to certain portfolios in the Insurance Europe and Netherland Non-life segments. In the fair value transition approach, the Contractual Service Margin is determined by reference to the fair value of insurance liabilities. Fair value is determined similar to fulfilment value, except that no group diversification is reflected in the risk adjustment, the cost of capital rate in the risk adjustment is set at 6% and expenses also include non-directly attributable expenses. The fair value transition approach is applied to, amongst others, portfolios in Netherlands Life.
NN uses the OCI option as described above, but set the amount in Other Comprehensive Income at transition date (1 January 2022) to nil under the modified or fair value transition approach for certain portfolios (i.e. for which it was not practicable to determine the amount in Other Comprehensive Income retrospectively). General account assets are considered to be one pool of assets, backing (part of some and all of other) insurance contracts and NN equity. Consequentially, the Investment revaluation reserve of those assets cannot be allocated specifically to insurance contracts for which the amount in Other Comprehensive Income was set to nil at the transition date.
Coverage units are determined based on the expected insurance contract services. The insurance contract services are determined considering the (weighted) quantity of the benefits provided from insurance and investment (return/related) services. For insurance services, the quantity of benefits can, amongst others, be based on the maximum amount a policyholder might validly claim during a certain period. For investment services, the quantity of benefits can, amongst others, be based on the account value of underlying assets. The total amount of coverage units for a group of insurance contracts is the probability weighted present value of the insurance contract services. Expected policies in force are used to determine the expected duration.
In the segment Netherlands Non-life qualifying insurance contracts are measured and reported under the Premium Allocation Approach. When using the Premium Allocation Approach, future cash flows related to the Liability for Remaining Coverage (i.e. the unearned premium reserve) are not adjusted for the time value of money and the effect of financial risk (if at initial recognition, it is expected that the time between providing each part of the coverage and the related premium due date is no more than one year). NN adjusts future cash flows related to the liability for incurred claims for the time value of money and the effect of financial risk. NN accounts for the acquisition costs directly in the profit and loss account when incurred, if the coverage period is no more than one year.
Estimates of future cash flows reflect mortality and morbidity assumptions that are internally developed and calibrated to NN\u2019s own experience, reflecting the characteristics of the relevant portfolio. National mortality tables published by relevant actuarial or statistical bodies are used as benchmarks. Future projected mortality improvements (generation mortality tables) are also reflected in the assumption tables and are determined internally. Where possible, mortality and morbidity assumptions are country, age, gender and sometimes product group specific. Assumptions for reinstatement rates and incidence rates are most material at NN Non-life. These assumptions are calibrated based on own experience reflecting the characteristics of the relevant portfolio. Reinstatement rates are duration dependent.
Mortality and longevity assumptions are most material at Netherlands Life. The approach to developing these assumptions internally at Netherlands Life is as follows. The mortality experience from Netherlands Life\u2019s portfolio is used for setting the baseline assumptions at the level of age, gender and homogenous risk groups. Own experience is used because an insured portfolio has structurally a different mortality experience than the general population. The internal model for future trends of mortality improvements uses a blend of national and EU mortality data and the improvement rates are defined per age and gender. Experience (both for own portfolio and national populations) is monitored through regular studies (at least on annual basis) and reflected in the measurement of insurance contracts. For the baseline assumptions calendar years are used for which the mortality experience is complete and as of 2023 a return to pre-Covid-19 mortality rates expectations is projected in an approach similar to AG 2024 methodology (i.e. exponential reduction over time of the excess mortality generated by Covid-19).
Expenses that are considered directly attributable are allocated to groups of insurance contracts, and estimates of these expected future expense cash flows are included in the insurance liability as a component of the fulfilment value. Non-attributable expenses are recognised directly in the profit and loss account when incurred. In principle, expenses that are necessary to serve the policyholder (including expenses to meet regulatory requirements as insurance company) are directly attributable whereas other expenses (i.e. corporate expenses) are not. For the projection of attributable expense to the future, expense inflation assumptions are applied. These take into account expected price inflation (derived where possible from observable market inputs), which is adjusted where necessary to take into account portfolio and business specific factors. Inflation regarding expense assumptions is considered a financial assumption if contractually or legally linked to observable market inputs.
Lapse, cancellation and surrender assumptions reflect the expected policyholder behaviour. As such the rates, which are business unit specific, usually depend on issue year, policy year, major product lines and sales channels. These rates are typically calibrated based on own experience. Such granularity is usually enough to capture how the product terms and conditions as well as regulations can influence the timing and volume of lapse and surrenders. Calendar year based adjustments and dynamic policyholder behaviour are considered when needed in specific circumstances.
NN also uses other assumptions that reflect the characteristics of the relevant portfolio of insurance contracts, including expected retirement ages and wage benefit levels.
Discount rates are determined using a liquid risk-free curve to which an illiquidity premium is added. The liquid risk-free curve is set per currency, while the illiquidity premium is determined per entity using an approach that reflects the characteristics of the current assets of that entity. Spreads used in the illiquidity premium are derived from fixed income assets using Z-spreads. The total asset spread is adjusted for expected and unexpected credit losses.
For the Euro currency, the risk-free curve is based on the swap rate and includes a last liquid point (LLP) of 30 years and a long-term forward rate (LTFR). At 31 December 2025 the LTFR was 3.20% (31 December 2024: 3.20%).
The table below sets out the yield curves used to discount the cash flows of insurance contracts for NN\u2019s largest segment, Netherlands Life.
| \u00a0 | General Model | Variable Fee Approach | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
1 year | 2.7% | 3.2% | 2.2% | 2.3% |
5 years | 3.1% | 3.1% | 2.5% | 2.2% |
10 years | 3.5% | 3.2% | 2.9% | 2.3% |
20 years | 3.8% | 3.2% | 3.3% | 2.3% |
30 years | 3.8% | 2.9% | 3.2% | 2.1% |
40 years | 3.7% | 2.9% | 3.2% | 2.1% |
For the other insurance segments within the group, the same risk-free curve is used, but the illiquidity premium is derived from the asset portfolios for the specific entities, resulting in a range of yield curves used.
The risk adjustment for non-financial risk is determined using the cost of capital methodology based on the Solvency II internal model or standard formula for Solvency II entities and an own (internal) model for economic capital for non-Solvency II insurance entities within the Group. The risk adjustment reflects diversification among non-market risks and with market risks within the entity as well as diversification with other entities within NN (Group diversification). The cost of capital rate represents NN\u2019s view on the compensation required for bearing non-financial risk; the cost of capital rate used in the fulfilment value of insurance liabilities is 4%. Changes in the risk adjustment related to changes in estimates of financial risk are disaggregated to Other Comprehensive Income if the OCI option is applied to the specific portfolio. The implied confidence levels are determined both for a one-year and an ultimate view, gross of reinsurance, using a normal distribution to translate economic capital to confidence level.
| \u00a0 | One year view | Ultimate view | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Life | 86% | 89% | 67% | 69% |
Non-life | 67% | 69% | 62% | 62% |
2025 | General Model | Variable Fee Approach | Total General Model and Variable Fee Approach | Premium Allocation Approach | Total |
|---|---|---|---|---|---|
Life insurance contracts for risk of company | 86,812 | 1,775 | 88,587 | \u00a0 | 88,587 |
Life insurance contracts for risk of policyholders | 6,023 | 39,030 | 45,053 | \u00a0 | 45,053 |
Life insurance contracts | 92,835 | 40,805 | 133,640 | 0 | 133,640 |
Non-life contracts for remaining coverage | 4,039 | \u00a0 | 4,039 | 248 | 4,287 |
Non-life contracts for incurred claims and benefits | 85 | \u00a0 | 85 | 2,448 | 2,533 |
Non-life insurance contracts | 4,124 | 0 | 4,124 | 2,696 | 6,820 |
Total insurance contracts | 96,959 | 40,805 | 137,764 | 2,696 | 140,460 |
\u2013 of which presented as assets | 474 | 6 | 480 | \u00a0 | 480 |
\u2013 of which presented as liabilities | 97,433 | 40,811 | 138,244 | 2,696 | 140,940 |
Total insurance contracts | 96,959 | 40,805 | 137,764 | 2,696 | 140,460 |
2024 | General Model | Variable Fee Approach | Total General Model and Variable Fee Approach | Premium Allocation Approach | Total |
|---|---|---|---|---|---|
Life insurance contracts for risk of company | 95,796 | 1,953 | 97,749 | 1 | 97,750 |
Life insurance contracts for risk of policyholders | 6,239 | 36,523 | 42,762 | \u00a0 | 42,762 |
Life insurance contracts | 102,035 | 38,476 | 140,511 | 1 | 140,512 |
Non-life contracts for remaining coverage | 3,948 | \u00a0 | 3,948 | 225 | 4,173 |
Non-life contracts for incurred claims and benefits | 111 | \u00a0 | 111 | 2,336 | 2,447 |
Non-life insurance contracts | 4,059 | 0 | 4,059 | 2,561 | 6,620 |
Total insurance contracts | 106,094 | 38,476 | 144,570 | 2,562 | 147,132 |
\u2013 of which presented as assets | 409 | \u00a0 | 409 | \u00a0 | 409 |
\u2013 of which presented as liabilities | 106,503 | 38,476 | 144,979 | 2,562 | 147,541 |
Total insurance contracts | 106,094 | 38,476 | 144,570 | 2,562 | 147,132 |
2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | 1,158 | -89 | -660 | 409 |
\u2013 opening balance presented as liabilities | 136,489 | 1,200 | 7,290 | 144,979 |
Net opening balance | 135,331 | 1,289 | 7,950 | 144,570 |
\u2013 insurance contracts initially recognised in the year | -828 | 83 | 788 | 43 |
\u2013 changes in estimates that adjust the contractual service margin | -1,243 | 137 | 1,106 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 42 | -9 | \u00a0 | 33 |
Changes that relate to future service | -2,029 | 211 | 1,894 | 76 |
\u2013 release to profit or loss | \u00a0 | -142 | -999 | -1,141 |
\u2013 experience adjustments not adjusting the contractual service margin | -88 | \u00a0 | \u00a0 | -88 |
Changes that relate to current service | -88 | -142 | -999 | -1,229 |
\u2013 changes in incurred claims and benefits previous years | 5 | -1 | \u00a0 | 4 |
Changes that relate to past service | 5 | -1 | 0 | 4 |
\u2013 finance result through profit or loss | 3,977 | 29 | 92 | 4,098 |
\u2013 finance result recognised in OCI | -4,534 | -148 | \u00a0 | -4,682 |
Finance result on insurance contracts | -557 | -119 | 92 | -584 |
\u2013 premiums received | 10,260 | \u00a0 | \u00a0 | 10,260 |
\u2013 acquisition costs paid | -673 | \u00a0 | \u00a0 | -673 |
\u2013 claims, benefits and attributable expenses paid | -13,382 | \u00a0 | \u00a0 | -13,382 |
\u2013 changes in the composition of the group and other changes | -3 | \u00a0 | -5 | -8 |
Cash flows | -3,798 | 0 | -5 | -3,803 |
Other movements | 3 | -2 | \u00a0 | 1 |
Foreign currency exchange differences | -1,156 | -31 | -84 | -1,271 |
Net closing balance | 127,711 | 1,205 | 8,848 | 137,764 |
\u2013 closing balance presented as assets | 1,378 | -100 | -798 | 480 |
\u2013 closing balance presented as liabilities | 129,089 | 1,105 | 8,050 | 138,244 |
Net closing balance | 127,711 | 1,205 | 8,848 | 137,764 |
2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | 778 | -70 | -353 | 355 |
\u2013 opening balance presented as liabilities | 134,158 | 1,730 | 6,619 | 142,507 |
Net opening balance | 133,380 | 1,800 | 6,972 | 142,152 |
\u2013 insurance contracts initially recognised in the year | -709 | 101 | 659 | 51 |
\u2013 changes in estimates that adjust the contractual service margin | -475 | -630 | 1,105 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -2 | -76 | \u00a0 | -78 |
Changes that relate to future service | -1,186 | -605 | 1,764 | -27 |
\u2013 release to profit or loss | \u00a0 | -134 | -857 | -991 |
\u2013 experience adjustments not adjusting the contractual service margin | -46 | -1 | \u00a0 | -47 |
Changes that relate to current service | -46 | -135 | -857 | -1,038 |
\u2013 changes in incurred claims and benefits previous years | -17 | \u00a0 | \u00a0 | -17 |
Changes that relate to past service | -17 | 0 | 0 | -17 |
\u2013 finance result through profit or loss | 6,578 | 38 | 79 | 6,695 |
\u2013 finance result recognised in OCI | 357 | 203 | 1 | 561 |
Finance result on insurance contracts | 6,935 | 241 | 80 | 7,256 |
\u2013 premiums received1 | 11,200 | \u00a0 | \u00a0 | 11,200 |
\u2013 acquisition costs paid | -637 | \u00a0 | \u00a0 | -637 |
\u2013 claims, benefits and attributable expenses paid | -13,634 | \u00a0 | \u00a0 | -13,634 |
Cash flows | -3,071 | 0 | 0 | -3,071 |
Other movements | -3 | \u00a0 | 47 | 44 |
Foreign currency exchange differences | -661 | -12 | -56 | -729 |
Net closing balance | 135,331 | 1,289 | 7,950 | 144,570 |
\u2013 closing balance presented as assets | 1,158 | -89 | -660 | 409 |
\u2013 closing balance presented as liabilities | 136,489 | 1,200 | 7,290 | 144,979 |
Net closing balance | 135,331 | 1,289 | 7,950 | 144,570 |
Reference is made to Note 29 Insurance contracts by segment for the insurance contracts under General Model and Variable Fee Approach by segment.
2025 | Onerous Insurance contracts issued | Other Insurance contracts issued | Insurance contracts acquired | Total Insurance contracts initially recognised |
|---|---|---|---|---|
Estimates of the present value of future cash inflows | -630 | -7,351 | \u00a0 | -7,981 |
\u2013 acquisition costs | 31 | 556 | \u00a0 | 587 |
\u2013 claims, benefits and attributable expenses | 639 | 5,927 | \u00a0 | 6,566 |
Estimates of the present value of future cash outflows | 670 | 6,483 | 0 | 7,153 |
Risk adjustment | 3 | 80 | \u00a0 | 83 |
Contractual service margin | \u00a0 | 788 | \u00a0 | 788 |
Total insurance contracts initially recognised in the year | 43 | 0 | 0 | 43 |
2024 | Onerous Insurance contracts issued | Other Insurance contracts issued | Insurance contracts acquired | Total Insurance contracts initially recognised |
|---|---|---|---|---|
Estimates of the present value of future cash inflows | -719 | -6,876 | 0 | -7,595 |
\u2013 acquisition costs | 31 | 508 | \u00a0 | 539 |
\u2013 claims, benefits and attributable expenses | 732 | 5,615 | \u00a0 | 6,347 |
Estimates of the present value of future cash outflows | 763 | 6,123 | 0 | 6,886 |
Risk adjustment | 7 | 94 | \u00a0 | 101 |
Contractual service margin | \u00a0 | 659 | \u00a0 | 659 |
Total insurance contracts initially recognised in the year | 51 | 0 | 0 | 51 |
Fair value of underlying items | 2025 | 2024 |
|---|---|---|
\u2013 debt securities | 611 | 766 |
\u2013 equity securities and investment funds | 42,073 | 39,534 |
\u2013 loans and other | 2,369 | 2,462 |
Total | 45,053 | 42,762 |
2025 | Contract issued after transition and full retrospective approach | Modified retrospective approach | Fair value approach | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
Disaggregation of the contractual service margin by transition approach - opening balance | 2,508 | 755 | 4,687 | 7,950 |
\u2013 insurance contracts initially recognised in the year | 788 | \u00a0 | \u00a0 | 788 |
\u2013 changes in estimates that adjust the contractual service margin | 116 | 55 | 935 | 1,106 |
Changes that relate to future service | 904 | 55 | 935 | 1,894 |
\u2013 release to profit or loss | -430 | -124 | -445 | -999 |
Changes that relate to current service | -430 | -124 | -445 | -999 |
Finance result | 48 | 8 | 36 | 92 |
Finance result through profit or loss | 48 | 8 | 36 | 92 |
Other movements | -5 | \u00a0 | \u00a0 | -5 |
Foreign currency exchange differences | -50 | -18 | -16 | -84 |
Disaggregation of the contractual service margin by transition approach - closing balance | 2,975 | 676 | 5,197 | 8,848 |
2024 | Contract issued after transition and full retrospective approach | Modified retrospective approach | Fair value approach | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
Disaggregation of the contractual service margin by transition approach - opening balance | 1,983 | 824 | 4,165 | 6,972 |
\u2013 insurance contracts initially recognised in the year | 659 | \u00a0 | \u00a0 | 659 |
\u2013 changes in estimates that adjust the contractual service margin | 213 | 69 | 823 | 1,105 |
Changes that relate to future service | 872 | 69 | 823 | 1,764 |
\u2013 release to profit or loss | -365 | -138 | -354 | -857 |
Changes that relate to current service | -365 | -138 | -354 | -857 |
Finance result | 40 | 9 | 31 | 80 |
Finance result through profit or loss | 40 | 9 | 31 | 80 |
Other movements | 16 | \u00a0 | 31 | 47 |
Foreign currency exchange differences | -38 | -9 | -9 | -56 |
Disaggregation of the contractual service margin by transition approach - closing balance | 2,508 | 755 | 4,687 | 7,950 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Less than 1 year | 893 | 687 |
1-2 years | 760 | 590 |
2-3 years | 681 | 529 |
3-4 years | 619 | 479 |
4-5 years | 561 | 440 |
5-10 years | 2,023 | 1,627 |
Over 10 years | 3,311 | 3,598 |
Total | 8,848 | 7,950 |
The Contractual Service Margin by remaining term provides the expected maturity of the balance sheet amount of the Contractual Service Margin at the end of the period. The actual release of the Contractual Service Margin that will be recognised in the profit and loss account in future years will differ as the release in future years will be impacted by the future development of the Contractual Service Margin due to new contracts sold, interest accreted and changes in estimates.
| \u00a0 | Liability for remaining coverage | Liability for incurred claims and benefits | Total General Model and Variable Fee Approach | |
|---|---|---|---|---|
2025 | Remaining coverage | Loss component | \u00a0 | \u00a0 |
\u2013 opening balance presented as assets | 469 | -9 | -51 | 409 |
\u2013 opening balance presented as liabilities | 143,127 | 263 | 1,589 | 144,979 |
Net opening balance | 142,658 | 272 | 1,640 | 144,570 |
\u2013 release of contractual service margin | -999 | \u00a0 | \u00a0 | -999 |
\u2013 release of risk adjustment | -142 | \u00a0 | \u00a0 | -142 |
\u2013 expected claims and benefits | -5,600 | \u00a0 | \u00a0 | -5,600 |
\u2013 expected attributable expenses | -1,304 | \u00a0 | \u00a0 | -1,304 |
\u2013 recovery of acquisition costs | -432 | \u00a0 | \u00a0 | -432 |
\u2013 experience adjustments for premiums that relate to current or past service | -17 | \u00a0 | \u00a0 | -17 |
Insurance income | -8,494 | 0 | 0 | -8,494 |
\u2013 incurred claims and benefits | \u00a0 | \u00a0 | 5,550 | 5,550 |
\u2013 incurred attributable expenses | \u00a0 | \u00a0 | 1,322 | 1,322 |
\u2013 amortisation of acquisition costs | 432 | \u00a0 | \u00a0 | 432 |
\u2013 changes in incurred claims and benefits previous years | \u00a0 | \u00a0 | 4 | 4 |
\u2013 (reversal of) losses on onerous contracts | \u00a0 | 37 | \u00a0 | 37 |
Insurance expenses | 432 | 37 | 6,876 | 7,345 |
Investment components excluded from insurance expenses and insurance income | -6,397 | \u00a0 | 6,397 | 0 |
\u2013 finance result through profit or loss | 4,110 | 3 | -15 | 4,098 |
\u2013 finance result recognised in OCI | -4,689 | \u00a0 | 7 | -4,682 |
Finance result on insurance contracts | -579 | 3 | -8 | -584 |
\u2013 premiums received | 10,260 | \u00a0 | \u00a0 | 10,260 |
\u2013 acquisition costs paid | -673 | \u00a0 | \u00a0 | -673 |
\u2013 claims, benefits and attributable expenses paid | \u00a0 | \u00a0 | -13,382 | -13,382 |
\u2013 changes in the composition of the group and other changes | -5 | -2 | -1 | -8 |
Cash flows | 9,582 | -2 | -13,383 | -3,803 |
Other movements | \u00a0 | \u00a0 | 1 | 1 |
Foreign currency exchange differences | -1,211 | -1 | -59 | -1,271 |
Net closing balance | 135,991 | 309 | 1,464 | 137,764 |
\u2013 closing balance presented as assets | 542 | -8 | -54 | 480 |
\u2013 closing balance presented as liabilities | 136,533 | 301 | 1,410 | 138,244 |
Net closing balance | 135,991 | 309 | 1,464 | 137,764 |
Remaining coverage includes risk adjustment and contractual service margin.
| \u00a0 | Liability for remaining coverage | Liability for incurred claims and benefits | Total General Model and Variable Fee Approach | |
|---|---|---|---|---|
2024 | Remaining coverage | Loss component | \u00a0 | \u00a0 |
\u2013 opening balance presented as assets | 391 | -6 | -30 | 355 |
\u2013 opening balance presented as liabilities | 140,190 | 315 | 2,002 | 142,507 |
Net opening balance | 139,799 | 321 | 2,032 | 142,152 |
\u2013 release of contractual service margin | -857 | \u00a0 | \u00a0 | -857 |
\u2013 release of risk adjustment | -134 | \u00a0 | \u00a0 | -134 |
\u2013 expected claims and benefits | -5,139 | \u00a0 | \u00a0 | -5,139 |
\u2013 expected attributable expenses | -1,280 | \u00a0 | \u00a0 | -1,280 |
\u2013 recovery of acquisition costs | -415 | \u00a0 | \u00a0 | -415 |
\u2013 experience adjustments for premiums that relate to current or past service | -18 | \u00a0 | \u00a0 | -18 |
Insurance income | -7,843 | 0 | 0 | -7,843 |
\u2013 incurred claims and benefits | \u00a0 | \u00a0 | 5,110 | 5,110 |
\u2013 incurred attributable expenses | \u00a0 | \u00a0 | 1,298 | 1,298 |
\u2013 amortisation of acquisition costs | 415 | \u00a0 | \u00a0 | 415 |
\u2013 changes in incurred claims and benefits previous years | \u00a0 | \u00a0 | -17 | -17 |
\u2013 (reversal of) losses on onerous contracts | \u00a0 | -45 | \u00a0 | -45 |
Insurance expenses | 415 | -45 | 6,391 | 6,761 |
Investment components excluded from insurance expenses and insurance income | -6,894 | \u00a0 | 6,894 | 0 |
\u2013 finance result through profit or loss | 6,678 | 4 | 13 | 6,695 |
\u2013 finance result recognised in OCI | 592 | \u00a0 | -31 | 561 |
Finance result on insurance contracts | 7,270 | 4 | -18 | 7,256 |
\u2013 premiums received | 11,200 | \u00a0 | \u00a0 | 11,200 |
\u2013 acquisition costs paid | -637 | \u00a0 | \u00a0 | -637 |
\u2013 claims, benefits and attributable expenses paid | \u00a0 | \u00a0 | -13,634 | -13,634 |
Cash flows | 10,563 | 0 | -13,634 | -3,071 |
Other movements | 51 | -8 | 1 | 44 |
Foreign currency exchange differences | -703 | \u00a0 | -26 | -729 |
Net closing balance | 142,658 | 272 | 1,640 | 144,570 |
\u2013 closing balance presented as assets | 469 | -9 | -51 | 409 |
\u2013 closing balance presented as liabilities | 143,127 | 263 | 1,589 | 144,979 |
Net closing balance | 142,658 | 272 | 1,640 | 144,570 |
Remaining coverage includes risk adjustment and contractual service margin.
| \u00a0 | Liability for remaining coverage | Liability for incurred claims and benefits | Total Premium Allocation Approach | ||
|---|---|---|---|---|---|
2025 | Remaining coverage | Loss component | Estimates of the present value of future cash flows | Risk adjustment | \u00a0 |
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 225 | 2 | 2,295 | 40 | 2,562 |
Net opening balance | 225 | 2 | 2,295 | 40 | 2,562 |
Insurance income | -3,023 | \u00a0 | \u00a0 | \u00a0 | -3,023 |
\u2013 incurred claims and benefits | \u00a0 | \u00a0 | 1,570 | 5 | 1,575 |
\u2013 incurred attributable expenses | \u00a0 | \u00a0 | 944 | \u00a0 | 944 |
\u2013 amortisation of acquisition costs | 4 | \u00a0 | \u00a0 | \u00a0 | 4 |
\u2013 changes in incurred claims and benefits previous years | \u00a0 | \u00a0 | -21 | 59 | 38 |
\u2013 (reversal of) losses on onerous contracts | \u00a0 | 2 | \u00a0 | \u00a0 | 2 |
Insurance expenses | 4 | 2 | 2,493 | 64 | 2,563 |
\u2013 finance result through profit or loss | \u00a0 | \u00a0 | 36 | \u00a0 | 36 |
\u2013 finance result recognised in OCI | \u00a0 | \u00a0 | 5 | \u00a0 | 5 |
Finance result on insurance contracts | 0 | 0 | 41 | 0 | 41 |
\u2013 premiums received | 3,044 | \u00a0 | \u00a0 | \u00a0 | 3,044 |
\u2013 acquisition costs paid | -4 | \u00a0 | \u00a0 | \u00a0 | -4 |
\u2013 claims, benefits and attributable expenses paid | \u00a0 | \u00a0 | -2,486 | \u00a0 | -2,486 |
Cash flows | 3,040 | 0 | -2,486 | 0 | 554 |
Foreign currency exchange differences | 1 | \u00a0 | 1 | -3 | -1 |
Net closing balance | 247 | 4 | 2,344 | 101 | 2,696 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 247 | 4 | 2,344 | 101 | 2,696 |
Net closing balance | 247 | 4 | 2,344 | 101 | 2,696 |
| \u00a0 | Liability for remaining coverage | Liability for incurred claims and benefits | Total Premium Allocation Approach | ||
|---|---|---|---|---|---|
2024 | Remaining coverage | Loss component | Estimates of the present value of future cash flows | Risk adjustment | \u00a0 |
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 217 | 2 | 2,295 | 43 | 2,557 |
Net opening balance | 217 | 2 | 2,295 | 43 | 2,557 |
Insurance income | -2,863 | \u00a0 | \u00a0 | \u00a0 | -2,863 |
\u2013 incurred claims and benefits | \u00a0 | \u00a0 | 1,498 | 4 | 1,502 |
\u2013 incurred attributable expenses | \u00a0 | \u00a0 | 922 | \u00a0 | 922 |
\u2013 amortisation of acquisition costs | 5 | \u00a0 | \u00a0 | \u00a0 | 5 |
\u2013 changes in incurred claims and benefits previous years | \u00a0 | \u00a0 | 55 | -9 | 46 |
\u2013 other insurance expenses | \u00a0 | \u00a0 | 1 | \u00a0 | 1 |
Insurance expenses | 5 | 0 | 2,476 | -5 | 2,476 |
\u2013 finance result through profit or loss | \u00a0 | \u00a0 | 30 | \u00a0 | 30 |
\u2013 finance result recognised in OCI | \u00a0 | \u00a0 | 44 | \u00a0 | 44 |
Finance result on insurance contracts | 0 | 0 | 74 | 0 | 74 |
\u2013 premiums received | 2,872 | \u00a0 | \u00a0 | \u00a0 | 2,872 |
\u2013 acquisition costs paid | -5 | \u00a0 | \u00a0 | \u00a0 | -5 |
\u2013 claims, benefits and attributable expenses paid | \u00a0 | \u00a0 | -2,549 | \u00a0 | -2,549 |
Cash flows | 2,867 | 0 | -2,549 | 0 | 318 |
Foreign currency exchange differences | -1 | \u00a0 | -1 | 2 | 0 |
Net closing balance | 225 | 2 | 2,295 | 40 | 2,562 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 225 | 2 | 2,295 | 40 | 2,562 |
Net closing balance | 225 | 2 | 2,295 | 40 | 2,562 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Accident year | \u00a0 |
|---|---|---|---|---|---|---|---|---|---|
| \u00a0 | 20181 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total |
Estimate of cumulative claims | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
At the end of accident year | 1,358 | 1,217 | 1,535 | 1,378 | 1,556 | 1,410 | 1,557 | 1,634 | \u00a0 |
1 year later | 1,341 | 1,324 | 1,436 | 1,364 | 1,515 | 1,523 | 1,588 | \u00a0 | \u00a0 |
2 years later | 1,403 | 1,332 | 1,440 | 1,310 | 1,520 | 1,509 | \u00a0 | \u00a0 | \u00a0 |
3 years later | 1,437 | 1,338 | 1,380 | 1,314 | 1,529 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
4 years later | 1,401 | 1,323 | 1,380 | 1,313 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
5 years later | 1,372 | 1,321 | 1,369 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
6 years later | 1,381 | 1,320 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
7 years later | 1,373 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Estimate of cumulative claims | 1,373 | 1,320 | 1,369 | 1,313 | 1,529 | 1,509 | 1,588 | 1,634 | 11,635 |
Cumulative payments | -1,304 | -1,220 | -1,257 | -1,170 | -1,317 | -1,238 | -1,192 | -756 | -9,454 |
Total (estimate) of cumulative claims and payments | 69 | 100 | 112 | 143 | 212 | 271 | 396 | 878 | 2,181 |
Effect of discounting | -7 | -10 | -11 | -14 | -20 | -27 | -38 | -58 | -185 |
Liabilities recognised | 62 | 90 | 101 | 129 | 192 | 244 | 358 | 820 | 1,996 |
Liabilities relating to accident years prior to 2018 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 263 |
LIC expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 85 |
Risk adjustment | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 101 |
Total liability for incurred claims and benefits Premium Allocation Approach2 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,445 |
2025 | General Model and Variable Fee Approach | Premium Allocation Approach | Total |
|---|---|---|---|
Netherlands Life | 103,580 | \u00a0 | 103,580 |
Netherlands Non-life | 3,968 | 2,642 | 6,610 |
Insurance Europe | 20,087 | \u00a0 | 20,087 |
Japan Life | 9,081 | \u00a0 | 9,081 |
Other | 1,048 | 54 | 1,102 |
Insurance contracts | 137,764 | 2,696 | 140,460 |
2024 | General Model and Variable Fee Approach | Premium Allocation Approach | Total |
|---|---|---|---|
Netherlands Life | 108,114 | \u00a0 | 108,114 |
Netherlands Non-life | 3,907 | 2,520 | 6,427 |
Insurance Europe | 19,331 | \u00a0 | 19,331 |
Japan Life | 12,047 | \u00a0 | 12,047 |
Other | 1,171 | 42 | 1,213 |
Insurance contracts | 144,570 | 2,562 | 147,132 |
Netherlands Life, 2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 103,285 | 525 | 4,304 | 108,114 |
Net opening balance | 103,285 | 525 | 4,304 | 108,114 |
\u2013 insurance contracts initially recognised in the year | -130 | 12 | 137 | 19 |
\u2013 changes in estimates that adjust the contractual service margin | -940 | 128 | 812 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -37 | -10 | \u00a0 | -47 |
Changes that relate to future service | -1,107 | 130 | 949 | -28 |
\u2013 release to profit or loss | \u00a0 | -45 | -359 | -404 |
\u2013 experience adjustments not adjusting the contractual service margin | -36 | \u00a0 | \u00a0 | -36 |
Changes that relate to current service | -36 | -45 | -359 | -440 |
\u2013 changes in incurred claims and benefits previous years | 5 | \u00a0 | \u00a0 | 5 |
Changes that relate to past service | 5 | 0 | 0 | 5 |
\u2013 finance result through profit or loss | 2,284 | 18 | 38 | 2,340 |
\u2013 finance result recognised in OCI | -3,435 | -149 | \u00a0 | -3,584 |
Finance result on insurance contracts | -1,151 | -131 | 38 | -1,244 |
\u2013 premiums received | 3,389 | \u00a0 | \u00a0 | 3,389 |
\u2013 acquisition costs paid | -39 | \u00a0 | \u00a0 | -39 |
\u2013 claims, benefits and attributable expenses paid | -6,177 | \u00a0 | \u00a0 | -6,177 |
Cash flows | -2,827 | 0 | 0 | -2,827 |
Net closing balance | 98,169 | 479 | 4,932 | 103,580 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 98,169 | 479 | 4,932 | 103,580 |
Net closing balance | 98,169 | 479 | 4,932 | 103,580 |
Netherlands Life, 2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 99,719 | 966 | 3,627 | 104,312 |
Net opening balance | 99,719 | 966 | 3,627 | 104,312 |
\u2013 insurance contracts initially recognised in the year | -170 | 36 | 159 | 25 |
\u2013 changes in estimates that adjust the contractual service margin | -76 | -636 | 712 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 27 | -19 | \u00a0 | 8 |
Changes that relate to future service | -219 | -619 | 871 | 33 |
\u2013 release to profit or loss | \u00a0 | -37 | -272 | -309 |
\u2013 experience adjustments not adjusting the contractual service margin | 1 | \u00a0 | \u00a0 | 1 |
Changes that relate to current service | 1 | -37 | -272 | -308 |
\u2013 changes in incurred claims and benefits previous years | -6 | \u00a0 | \u00a0 | -6 |
Changes that relate to past service | -6 | 0 | 0 | -6 |
\u2013 finance result through profit or loss | 5,051 | 22 | 32 | 5,105 |
\u2013 finance result recognised in OCI | 658 | 193 | \u00a0 | 851 |
Finance result on insurance contracts | 5,709 | 215 | 32 | 5,956 |
\u2013 premiums received | 4,298 | \u00a0 | \u00a0 | 4,298 |
\u2013 acquisition costs paid | -39 | \u00a0 | \u00a0 | -39 |
\u2013 claims, benefits and attributable expenses paid | -6,178 | \u00a0 | \u00a0 | -6,178 |
Cash flows | -1,919 | 0 | 0 | -1,919 |
Other movements | \u00a0 | \u00a0 | 46 | 46 |
Net closing balance | 103,285 | 525 | 4,304 | 108,114 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 103,285 | 525 | 4,304 | 108,114 |
Net closing balance | 103,285 | 525 | 4,304 | 108,114 |
Netherlands Non-life, 2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 3,242 | 147 | 518 | 3,907 |
Net opening balance | 3,242 | 147 | 518 | 3,907 |
\u2013 insurance contracts initially recognised in the year | -126 | 13 | 114 | 1 |
\u2013 changes in estimates that adjust the contractual service margin | 67 | -58 | -9 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 46 | \u00a0 | \u00a0 | 46 |
Changes that relate to future service | -13 | -45 | 105 | 47 |
\u2013 release to profit or loss | \u00a0 | -19 | -67 | -86 |
\u2013 experience adjustments not adjusting the contractual service margin | 5 | \u00a0 | \u00a0 | 5 |
Changes that relate to current service | 5 | -19 | -67 | -81 |
\u2013 changes in incurred claims and benefits previous years | 1 | \u00a0 | \u00a0 | 1 |
Changes that relate to past service | 1 | 0 | 0 | 1 |
\u2013 finance result through profit or loss | 77 | 3 | 10 | 90 |
\u2013 finance result recognised in OCI | -86 | 8 | \u00a0 | -78 |
Finance result on insurance contracts | -9 | 11 | 10 | 12 |
\u2013 premiums received | 1,168 | \u00a0 | \u00a0 | 1,168 |
\u2013 acquisition costs paid | -13 | \u00a0 | \u00a0 | -13 |
\u2013 claims, benefits and attributable expenses paid | -1,073 | \u00a0 | \u00a0 | -1,073 |
Cash flows | 82 | 0 | 0 | 82 |
Net closing balance | 3,308 | 94 | 566 | 3,968 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 3,308 | 94 | 566 | 3,968 |
Net closing balance | 3,308 | 94 | 566 | 3,968 |
Netherlands Non-life, 2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 3,173 | 130 | 495 | 3,798 |
Net opening balance | 3,173 | 130 | 495 | 3,798 |
\u2013 insurance contracts initially recognised in the year | -94 | 12 | 83 | 1 |
\u2013 changes in estimates that adjust the contractual service margin | -19 | 25 | -6 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -2 | \u00a0 | \u00a0 | -2 |
Changes that relate to future service | -115 | 37 | 77 | -1 |
\u2013 release to profit or loss | \u00a0 | -24 | -62 | -86 |
\u2013 experience adjustments not adjusting the contractual service margin | 12 | \u00a0 | \u00a0 | 12 |
Changes that relate to current service | 12 | -24 | -62 | -74 |
\u2013 changes in incurred claims and benefits previous years | 2 | \u00a0 | \u00a0 | 2 |
Changes that relate to past service | 2 | 0 | 0 | 2 |
\u2013 finance result through profit or loss | 68 | 2 | 7 | 77 |
\u2013 finance result recognised in OCI | 63 | 1 | \u00a0 | 64 |
Finance result on insurance contracts | 131 | 3 | 7 | 141 |
\u2013 premiums received | 1,187 | \u00a0 | \u00a0 | 1,187 |
\u2013 acquisition costs paid | -14 | \u00a0 | \u00a0 | -14 |
\u2013 claims, benefits and attributable expenses paid | -1,132 | \u00a0 | \u00a0 | -1,132 |
Cash flows | 41 | 0 | 0 | 41 |
Other movements | -2 | 1 | 1 | 0 |
Net closing balance | 3,242 | 147 | 518 | 3,907 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 3,242 | 147 | 518 | 3,907 |
Net closing balance | 3,242 | 147 | 518 | 3,907 |
Insurance Europe, 2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | 1,158 | -89 | -660 | 409 |
\u2013 opening balance presented as liabilities | 17,993 | 268 | 1,479 | 19,740 |
Net opening balance | 16,835 | 357 | 2,139 | 19,331 |
\u2013 insurance contracts initially recognised in the year | -395 | 38 | 381 | 24 |
\u2013 changes in estimates that adjust the contractual service margin | -335 | 7 | 328 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 32 | 2 | \u00a0 | 34 |
Changes that relate to future service | -698 | 47 | 709 | 58 |
\u2013 release to profit or loss | \u00a0 | -48 | -426 | -474 |
\u2013 experience adjustments not adjusting the contractual service margin | -44 | \u00a0 | \u00a0 | -44 |
Changes that relate to current service | -44 | -48 | -426 | -518 |
\u2013 changes in incurred claims and benefits previous years | -1 | -1 | \u00a0 | -2 |
Changes that relate to past service | -1 | -1 | 0 | -2 |
\u2013 finance result through profit or loss | 1,374 | 6 | 39 | 1,419 |
\u2013 finance result recognised in OCI | -169 | 13 | \u00a0 | -156 |
Finance result on insurance contracts | 1,205 | 19 | 39 | 1,263 |
\u2013 premiums received | 3,927 | \u00a0 | \u00a0 | 3,927 |
\u2013 acquisition costs paid | -507 | \u00a0 | \u00a0 | -507 |
\u2013 claims, benefits and attributable expenses paid | -3,582 | \u00a0 | \u00a0 | -3,582 |
\u2013 changes in the composition of the group and other changes | -3 | \u00a0 | -5 | -8 |
Cash flows | -165 | 0 | -5 | -170 |
Foreign currency exchange differences | 100 | 2 | 23 | 125 |
Net closing balance | 17,232 | 376 | 2,479 | 20,087 |
\u2013 closing balance presented as assets | 1,326 | -96 | -756 | 474 |
\u2013 closing balance presented as liabilities | 18,558 | 280 | 1,723 | 20,561 |
Net closing balance | 17,232 | 376 | 2,479 | 20,087 |
Insurance Europe, 2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | 777 | -69 | -353 | 355 |
\u2013 opening balance presented as liabilities | 17,679 | 372 | 1,485 | 19,536 |
Net opening balance | 16,902 | 441 | 1,838 | 19,181 |
\u2013 insurance contracts initially recognised in the year | -319 | 38 | 305 | 24 |
\u2013 changes in estimates that adjust the contractual service margin | -308 | -33 | 341 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -31 | -58 | \u00a0 | -89 |
Changes that relate to future service | -658 | -53 | 646 | -65 |
\u2013 release to profit or loss | \u00a0 | -47 | -371 | -418 |
\u2013 experience adjustments not adjusting the contractual service margin | -25 | \u00a0 | \u00a0 | -25 |
Changes that relate to current service | -25 | -47 | -371 | -443 |
\u2013 changes in incurred claims and benefits previous years | -13 | \u00a0 | \u00a0 | -13 |
Changes that relate to past service | -13 | 0 | 0 | -13 |
\u2013 finance result through profit or loss | 1,188 | 13 | 37 | 1,238 |
\u2013 finance result recognised in OCI | 17 | 3 | \u00a0 | 20 |
Finance result on insurance contracts | 1,205 | 16 | 37 | 1,258 |
\u2013 premiums received | 3,714 | \u00a0 | \u00a0 | 3,714 |
\u2013 acquisition costs paid | -480 | \u00a0 | \u00a0 | -480 |
\u2013 claims, benefits and attributable expenses paid | -3,750 | \u00a0 | \u00a0 | -3,750 |
Cash flows | -516 | 0 | 0 | -516 |
Other movements | -3 | \u00a0 | \u00a0 | -3 |
Foreign currency exchange differences | -57 | \u00a0 | -11 | -68 |
Net closing balance | 16,835 | 357 | 2,139 | 19,331 |
\u2013 closing balance presented as assets | 1,158 | -89 | -660 | 409 |
\u2013 closing balance presented as liabilities | 17,993 | 268 | 1,479 | 19,740 |
Net closing balance | 16,835 | 357 | 2,139 | 19,331 |
Japan Life, 2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 10,806 | 259 | 982 | 12,047 |
Net opening balance | 10,806 | 259 | 982 | 12,047 |
\u2013 insurance contracts initially recognised in the year | -172 | 20 | 152 | 0 |
\u2013 changes in estimates that adjust the contractual service margin | -43 | 59 | -16 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -3 | 1 | \u00a0 | -2 |
Changes that relate to future service | -218 | 80 | 136 | -2 |
\u2013 release to profit or loss | \u00a0 | -32 | -146 | -178 |
\u2013 experience adjustments not adjusting the contractual service margin | -8 | \u00a0 | \u00a0 | -8 |
Changes that relate to current service | -8 | -32 | -146 | -186 |
\u2013 finance result through profit or loss | 117 | 1 | 5 | 123 |
\u2013 finance result recognised in OCI | -843 | -19 | \u00a0 | -862 |
Finance result on insurance contracts | -726 | -18 | 5 | -739 |
\u2013 premiums received | 1,755 | \u00a0 | \u00a0 | 1,755 |
\u2013 acquisition costs paid | -114 | \u00a0 | \u00a0 | -114 |
\u2013 claims, benefits and attributable expenses paid | -2,411 | \u00a0 | \u00a0 | -2,411 |
Cash flows | -770 | 0 | 0 | -770 |
Other movements | 1 | \u00a0 | \u00a0 | 1 |
Foreign currency exchange differences | -1,129 | -33 | -108 | -1,270 |
Net closing balance | 7,956 | 256 | 869 | 9,081 |
\u2013 closing balance presented as assets | 51 | -4 | -42 | 5 |
\u2013 closing balance presented as liabilities | 8,007 | 252 | 827 | 9,086 |
Net closing balance | 7,956 | 256 | 869 | 9,081 |
Japan Life, 2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 12,382 | 258 | 1,008 | 13,648 |
Net opening balance | 12,382 | 258 | 1,008 | 13,648 |
\u2013 insurance contracts initially recognised in the year | -127 | 15 | 112 | 0 |
\u2013 changes in estimates that adjust the contractual service margin | -68 | 15 | 53 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 2 | \u00a0 | \u00a0 | 2 |
Changes that relate to future service | -193 | 30 | 165 | 2 |
\u2013 release to profit or loss | \u00a0 | -27 | -152 | -179 |
\u2013 experience adjustments not adjusting the contractual service margin | -27 | \u00a0 | \u00a0 | -27 |
Changes that relate to current service | -27 | -27 | -152 | -206 |
\u2013 finance result through profit or loss | 124 | 1 | 4 | 129 |
\u2013 finance result recognised in OCI | -380 | 7 | \u00a0 | -373 |
Finance result on insurance contracts | -256 | 8 | 4 | -244 |
\u2013 premiums received | 1,990 | \u00a0 | \u00a0 | 1,990 |
\u2013 acquisition costs paid | -104 | \u00a0 | \u00a0 | -104 |
\u2013 claims, benefits and attributable expenses paid | -2,434 | \u00a0 | \u00a0 | -2,434 |
Cash flows | -548 | 0 | 0 | -548 |
Foreign currency exchange differences | -552 | -10 | -43 | -605 |
Net closing balance | 10,806 | 259 | 982 | 12,047 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 10,806 | 259 | 982 | 12,047 |
Net closing balance | 10,806 | 259 | 982 | 12,047 |
IFRS 17 allows certain accounting policy choices and requires judgment in setting certain assumptions. The most important accounting policies and assumptions that are relevant to NN are set out below.
NN applies each of the three accounting models in IFRS 17. The General Model is the default model and is applied to traditional life insurance portfolios. The Variable Fee Approach is applied to most unit-linked portfolio\u2019s. The Variable Fee Approach is, amongst others, not applied to unit-linked portfolio\u2019s for which the guarantees were in the money at the date of the Variable Fee Approach assessment. Netherlands Non\u2011life applies the Premium Allocation Approach to P&C contracts that have a contract boundary of one year or less and to contracts where using the General Model would not produce a materially different liability for remaining coverage.
NN determines per portfolio of insurance contracts whether the effect of changes in financial assumptions, including changes in discount rates, are reflected either fully in the profit and loss account or partially in Other Comprehensive Income (OCI) in equity and partially in the profit and loss account based on a systematic allocation of the expected total net finance result over the duration of the group of contracts (the \u2018OCI option\u2019). Under the OCI option, amounts recognised in Other Comprehensive Income are recycled through profit or loss so that the amount in Other Comprehensive Income will be nil at the end of the duration of the portfolio of insurance contracts. This recycling is done by accreting interest on the insurance liability through profit or loss using a locked-in discount rate at initial recognition of the contract, which is unlocked for changes in financial assumption after initial recognition, if any. This interest accretion is presented in \u2018Finance result on (re)insurance contracts\u2019.
Insurance contracts are aggregated per \u2018CSM group\u2019 under IFRS 17. A CSM group consists of contracts within the same portfolio, the same profitability bucket and issued in the same annual period. Contracts are in the same portfolio if these are managed together and have similar risks. NN uses at least three profitability buckets: onerous contracts, contracts that have no possibility of becoming onerous and remaining contracts. Groups of contracts issued in the same annual period are referred to as an annual cohort. For certain groups of insurance contracts additional disaggregation is applied.
Under the EU-endorsed version of IFRS 17 (IFRS-EU), certain specific insurance contracts do not need to be disaggregated by the year in which these contracts were issued (no annual cohorts). NN does not apply this IFRS-EU exemption.
If a contract would fall into a different group only because law or regulation specifically constrains NN\u2019s practical ability to set a different price or level of benefits for policyholders with different characteristics, NN includes those contracts in the same group.
For insurance products where there is uncertainty on the settlement of the claim amount, NN accounts for the uncertain claim amounts, as part of the liability for incurred claims (mostly for property and casualty insurance contracts) or as part of the liability for remaining coverage (mostly for Dutch disability and other insurance contracts).
Insurance income and expenses in the profit and loss account exclude any (non-distinct) investment components. An investment component is the amount that an insurance contract requires NN to repay to a policyholder in all circumstances, regardless of whether an insured event occurs. For products containing a surrender option for the client, the non-distinct investment component is normally based on the contractual surrender value after deduction of surrender charges.
Under the General Model, NN specifies at inception of the insurance contract the basis on which it expects to determine its commitment under the contract; for example, based on a fixed interest rate, or on returns that vary based on specified asset returns. That specification is then used to distinguish between the effect of changes in assumptions that relate to financial variables (that do not adjust the Contractual Service Margin but are recognised as finance result through profit or loss or in Other Comprehensive Income) and non-financial variables and discretionary changes to that commitment (that do adjust the Contractual Service Margin).
Under the Variable Fee Approach, the effect of changes in financial and non-financial assumptions on the net present value of future cash flows (not stemming from changes in the policyholders\u2019 share of the underlying items) adjust the Contractual Service Margin using current discount rates. Changes in the underlying items are included in \u2018Finance result on (re)insurance contracts\u2019 in the profit and loss account. Changes in estimates that adjust the Contractual Service Margin exclude the changes in value of options and guarantees of contracts accounted for under the Variable Fee Approach that are hedged for which the Risk mitigation option is applied. These are reflected in \u2018Finance result on (re)insurance contracts\u2019 in the profit and loss account.
NN applies a year-to-date approach, i.e. NN changes the treatment of previous accounting estimates made when reporting over the year.
A loss component is formed for contracts that are or have become onerous. The loss component will change over time due to, amongst others, interest accretion, changes in estimates and a systematic allocation of the release of expected claims, expenses and risk adjustment.
Insurance related receivables and payables including policy loans are presented as part of the insurance contracts. NN considers premiums receivables from intermediaries and tied agents to be future cash flows within the boundary of an insurance contract.
NN recognises an asset for any directly attributable insurance acquisition costs incurred relating to groups of to be recognised insurance contracts or their renewals (with the exception of contracts measured under the Premium Allocation Approach with a coverage period of one year or less where the acquisition costs are expensed immediately in the profit and loss account). The asset for incurred acquisition costs to be attributed to insurance contracts is derecognised when groups of insurance contracts to which the insurance acquisition costs are allocated, are recognised.
For traditional life insurance contracts, certain types of flexible life insurance contracts and non-life insurance contracts with a coverage period of over one year, the amortisation of acquisition costs takes place over the premium payment period in proportion to the revenue recognised. For other types of flexible life insurance contracts, the acquisition costs are amortised over the duration of the policies in relation to the emergence of estimated profits. Amortisation is adjusted when estimates of current or future profits, to be realised from a group of insurance contracts, are revised.
NN used each of the transition approaches in IFRS 17. In the modified retrospective transition approach, NN used mainly the modifications for historical cash flows, the historical release of the risk adjustment and determining groups of contracts. The modified retrospective approach is applied to certain portfolios in the Insurance Europe and Netherland Non-life segments. In the fair value transition approach, the Contractual Service Margin is determined by reference to the fair value of insurance liabilities. Fair value is determined similar to fulfilment value, except that no group diversification is reflected in the risk adjustment, the cost of capital rate in the risk adjustment is set at 6% and expenses also include non-directly attributable expenses. The fair value transition approach is applied to, amongst others, portfolios in Netherlands Life.
NN uses the OCI option as described above, but set the amount in Other Comprehensive Income at transition date (1 January 2022) to nil under the modified or fair value transition approach for certain portfolios (i.e. for which it was not practicable to determine the amount in Other Comprehensive Income retrospectively). General account assets are considered to be one pool of assets, backing (part of some and all of other) insurance contracts and NN equity. Consequentially, the Investment revaluation reserve of those assets cannot be allocated specifically to insurance contracts for which the amount in Other Comprehensive Income was set to nil at the transition date.
Coverage units are determined based on the expected insurance contract services. The insurance contract services are determined considering the (weighted) quantity of the benefits provided from insurance and investment (return/related) services. For insurance services, the quantity of benefits can, amongst others, be based on the maximum amount a policyholder might validly claim during a certain period. For investment services, the quantity of benefits can, amongst others, be based on the account value of underlying assets. The total amount of coverage units for a group of insurance contracts is the probability weighted present value of the insurance contract services. Expected policies in force are used to determine the expected duration.
In the segment Netherlands Non-life qualifying insurance contracts are measured and reported under the Premium Allocation Approach. When using the Premium Allocation Approach, future cash flows related to the Liability for Remaining Coverage (i.e. the unearned premium reserve) are not adjusted for the time value of money and the effect of financial risk (if at initial recognition, it is expected that the time between providing each part of the coverage and the related premium due date is no more than one year). NN adjusts future cash flows related to the liability for incurred claims for the time value of money and the effect of financial risk. NN accounts for the acquisition costs directly in the profit and loss account when incurred, if the coverage period is no more than one year.
Estimates of future cash flows reflect mortality and morbidity assumptions that are internally developed and calibrated to NN\u2019s own experience, reflecting the characteristics of the relevant portfolio. National mortality tables published by relevant actuarial or statistical bodies are used as benchmarks. Future projected mortality improvements (generation mortality tables) are also reflected in the assumption tables and are determined internally. Where possible, mortality and morbidity assumptions are country, age, gender and sometimes product group specific. Assumptions for reinstatement rates and incidence rates are most material at NN Non-life. These assumptions are calibrated based on own experience reflecting the characteristics of the relevant portfolio. Reinstatement rates are duration dependent.
Mortality and longevity assumptions are most material at Netherlands Life. The approach to developing these assumptions internally at Netherlands Life is as follows. The mortality experience from Netherlands Life\u2019s portfolio is used for setting the baseline assumptions at the level of age, gender and homogenous risk groups. Own experience is used because an insured portfolio has structurally a different mortality experience than the general population. The internal model for future trends of mortality improvements uses a blend of national and EU mortality data and the improvement rates are defined per age and gender. Experience (both for own portfolio and national populations) is monitored through regular studies (at least on annual basis) and reflected in the measurement of insurance contracts. For the baseline assumptions calendar years are used for which the mortality experience is complete and as of 2023 a return to pre-Covid-19 mortality rates expectations is projected in an approach similar to AG 2024 methodology (i.e. exponential reduction over time of the excess mortality generated by Covid-19).
Expenses that are considered directly attributable are allocated to groups of insurance contracts, and estimates of these expected future expense cash flows are included in the insurance liability as a component of the fulfilment value. Non-attributable expenses are recognised directly in the profit and loss account when incurred. In principle, expenses that are necessary to serve the policyholder (including expenses to meet regulatory requirements as insurance company) are directly attributable whereas other expenses (i.e. corporate expenses) are not. For the projection of attributable expense to the future, expense inflation assumptions are applied. These take into account expected price inflation (derived where possible from observable market inputs), which is adjusted where necessary to take into account portfolio and business specific factors. Inflation regarding expense assumptions is considered a financial assumption if contractually or legally linked to observable market inputs.
Lapse, cancellation and surrender assumptions reflect the expected policyholder behaviour. As such the rates, which are business unit specific, usually depend on issue year, policy year, major product lines and sales channels. These rates are typically calibrated based on own experience. Such granularity is usually enough to capture how the product terms and conditions as well as regulations can influence the timing and volume of lapse and surrenders. Calendar year based adjustments and dynamic policyholder behaviour are considered when needed in specific circumstances.
NN also uses other assumptions that reflect the characteristics of the relevant portfolio of insurance contracts, including expected retirement ages and wage benefit levels.
Discount rates are determined using a liquid risk-free curve to which an illiquidity premium is added. The liquid risk-free curve is set per currency, while the illiquidity premium is determined per entity using an approach that reflects the characteristics of the current assets of that entity. Spreads used in the illiquidity premium are derived from fixed income assets using Z-spreads. The total asset spread is adjusted for expected and unexpected credit losses.
For the Euro currency, the risk-free curve is based on the swap rate and includes a last liquid point (LLP) of 30 years and a long-term forward rate (LTFR). At 31 December 2025 the LTFR was 3.20% (31 December 2024: 3.20%).
The table below sets out the yield curves used to discount the cash flows of insurance contracts for NN\u2019s largest segment, Netherlands Life.
| \u00a0 | General Model | Variable Fee Approach | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
1 year | 2.7% | 3.2% | 2.2% | 2.3% |
5 years | 3.1% | 3.1% | 2.5% | 2.2% |
10 years | 3.5% | 3.2% | 2.9% | 2.3% |
20 years | 3.8% | 3.2% | 3.3% | 2.3% |
30 years | 3.8% | 2.9% | 3.2% | 2.1% |
40 years | 3.7% | 2.9% | 3.2% | 2.1% |
For the other insurance segments within the group, the same risk-free curve is used, but the illiquidity premium is derived from the asset portfolios for the specific entities, resulting in a range of yield curves used.
The risk adjustment for non-financial risk is determined using the cost of capital methodology based on the Solvency II internal model or standard formula for Solvency II entities and an own (internal) model for economic capital for non-Solvency II insurance entities within the Group. The risk adjustment reflects diversification among non-market risks and with market risks within the entity as well as diversification with other entities within NN (Group diversification). The cost of capital rate represents NN\u2019s view on the compensation required for bearing non-financial risk; the cost of capital rate used in the fulfilment value of insurance liabilities is 4%. Changes in the risk adjustment related to changes in estimates of financial risk are disaggregated to Other Comprehensive Income if the OCI option is applied to the specific portfolio. The implied confidence levels are determined both for a one-year and an ultimate view, gross of reinsurance, using a normal distribution to translate economic capital to confidence level.
| \u00a0 | One year view | Ultimate view | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Life | 86% | 89% | 67% | 69% |
Non-life | 67% | 69% | 62% | 62% |
For contracts accounted for under the General Model and Premium Allocation Approach, in principle the OCI option is used, unless accounting for the impact of changes in financial assumptions directly in the profit and loss account resolves accounting mismatches or is otherwise preferred. For contracts accounted for under the Variable Fee Approach, the OCI option is, in principle, not applied.
NN recognises an asset for any directly attributable insurance acquisition costs incurred relating to groups of to be recognised insurance contracts or their renewals (with the exception of contracts measured under the Premium Allocation Approach with a coverage period of one year or less where the acquisition costs are expensed immediately in the profit and loss account). The asset for incurred acquisition costs to be attributed to insurance contracts is derecognised when groups of insurance contracts to which the insurance acquisition costs are allocated, are recognised.
For traditional life insurance contracts, certain types of flexible life insurance contracts and non-life insurance contracts with a coverage period of over one year, the amortisation of acquisition costs takes place over the premium payment period in proportion to the revenue recognised. For other types of flexible life insurance contracts, the acquisition costs are amortised over the duration of the policies in relation to the emergence of estimated profits. Amortisation is adjusted when estimates of current or future profits, to be realised from a group of insurance contracts, are revised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredAcquisitionCostsArisingFromInsuranceContractsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i8896": { "value": "Expenses that are considered directly attributable are allocated to groups of insurance contracts, and estimates of these expected future expense cash flows are included in the insurance liability as a component of the fulfilment value. Non-attributable expenses are recognised directly in the profit and loss account when incurred. In principle, expenses that are necessary to serve the policyholder (including expenses to meet regulatory requirements as insurance company) are directly attributable whereas other expenses (i.e. corporate expenses) are not. For the projection of attributable expense to the future, expense inflation assumptions are applied. These take into account expected price inflation (derived where possible from observable market inputs), which is adjusted where necessary to take into account portfolio and business specific factors. Inflation regarding expense assumptions is considered a financial assumption if contractually or legally linked to observable market inputs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i10826": { "value": "Insurance policies without discretionary participation features which do not bear significant insurance risk are presented as Investment contracts. Investment contracts are determined at amortised cost, using the effective interest method, or at fair value.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investment contracts \u2013 opening balance | 3,859 | 3,621 |
Current year liabilities | 458 | 450 |
Prior years liabilities: | \u00a0 | \u00a0 |
\u2013 payments to contract holders | -468 | -462 |
\u2013 interest accrual | 11 | 6 |
\u2013 valuation changes investments | 145 | 250 |
Foreign currency exchange differences | -16 | -6 |
Investment contracts \u2013 closing balance | 3,989 | 3,859 |
Insurance policies without discretionary participation features which do not bear significant insurance risk are presented as Investment contracts. Investment contracts are determined at amortised cost, using the effective interest method, or at fair value.
Debt instruments issued, subordinated debt, and other borrowed funds are recognised initially at their issue proceeds (fair value of consideration received) net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between proceeds, net of transaction costs and the redemption value is recognised in the profit and loss account over the period of the borrowings using the effective interest method.
If NN Group N.V. purchases its own debt, it is derecognised from the balance sheet and the difference between the carrying value of the liability and the consideration paid is recognised in the profit and loss account.
Financial liabilities include only instruments of which the terms and conditions represent a contractual obligation to pay interest and/or principal. Instruments that are similar in substance, but of which the terms and conditions do not include a contractual obligation to pay interest and principal are classified as equity.
Derivatives are recognised at fair value. Derivatives are presented as assets when the fair value is positive and as liabilities when the fair value is negative.
The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. NN designates certain derivatives as hedges of highly probable future cash flows attributable to a recognised asset or liability or a forecast transaction (cash flow hedge), hedges of the fair value of recognised assets or liabilities or firm commitments (fair value hedge), or hedges of a net investment in a foreign operation. Hedge accounting is used for derivatives designated in this way provided certain criteria are met.
Reference is made to Note 34 Hedge accounting for further information on hedge accounting.
Accounting for reinsurance contracts held is mostly similar to the accounting for insurance contracts issued, with the following specific considerations:
Reinsurance contracts held can be measured applying the General Model or the Premium Allocation Approach. The Variable Fee Approach cannot be applied to reinsurance contracts held. Reinsurance contracts held cannot be onerous.
Expected reinsurance recoveries include a provision for non-performance risk of the reinsurer. Changes in non-performance risk are accounted for in profit or loss. Non-performance risk includes insolvency risk, risks related to disputes, further negotiations and collateral losses.
Losses on reinsured insurance contracts may be (partially) offset with a reinsurance loss-recovery component. This applies if the underlying insurance contracts are onerous upon initial recognition or if a change in estimates leads to onerous insurance contracts and the same change in estimates has an offsetting effect on the reinsurance contract held.
In May 2020, NN entered into three reinsurance agreements to reinsure the full longevity risk associated with in total approximately EUR 13.5 billion of insurance contracts in Netherlands Life. This reinsurance reduced NN\u2019s exposure to longevity risk and, consequently, the required capital under Solvency II. The three reinsurance agreements are similar in nature but are agreed with three different assuming reinsurers, Canada Life, Munich Re and Swiss Re. The risk transfer was effective as of 1 January 2020 and will continue until the relevant portfolio has run off.
In December 2021, NN entered into a fourth reinsurance agreement to reinsure the full longevity risk associated with in total approximately EUR 4 billion of insurance contracts in Netherlands Life. The fourth reinsurance agreement is similar in nature to the first three contracts but is agreed with a different reinsurer, RGA. The risk transfer for the fourth contract is effective as of 31 December 2021. The risk transfer will continue until the relevant portfolio has run off.
In December 2023, NN completed two transactions to transfer the full longevity risk associated with in total approximately EUR 13 billion of insurance contracts in Netherlands Life. The transactions cover the longevity risk of approximately 300 thousand policies and have been entered into with an insurance subsidiary of Prudential Financial, Inc. and with Swiss Re. The risk transfer became effective as of 31 December 2023, and the reinsurance agreements will continue until the portfolio has run off.
In December 2024, NN entered into a reinsurance agreement with Pacific Life Re International (UK branch) transferring the full longevity risk on part of its DC decumulation portfolio, representing approximately EUR 2.5 billion. The transfer date is 31 December 2024, and the reinsurance agreement remains effective until full run-off of reinsured portfolio. Furthermore, the reinsurance agreement will cover the full longevity risk associated to the future new business within the DC decumulation phase for at least 2025. This new business is acquired by NN via its own DC accumulation portfolio and via annuities accumulated with other providers.
In June 2025, NN completed a new longevity reinsurance agreement with an insurance subsidiary of Prudential Financial Inc. associated with in total approximately EUR 4 billion of insurance contracts in Netherlands Life. The risk transfer became effective as of 30 June 2025 and the reinsurance will continue until the portfolio has run off. The characteristics of the reinsurance is broadly similar to the longevity reinsurance agreement as entered by NN in year-end 2023.
2025 | General Model | Premium Allocation Approach | Total |
|---|---|---|---|
Life reinsurance contracts | 331 | 6 | 337 |
Non-life reinsurance contracts | 1 | 145 | 146 |
Total life and non-life reinsurance contracts | 332 | 151 | 483 |
- of which presented as assets | 401 | 151 | 552 |
- of which presented as liabilities | 69 | \u00a0 | 69 |
Total life and non-life reinsurance contracts | 332 | 151 | 483 |
2024 | General Model | Premium Allocation Approach | Total |
|---|---|---|---|
Life reinsurance contracts | 391 | \u00a0 | 391 |
Non-life reinsurance contracts | 15 | 162 | 177 |
Total life and non-life reinsurance contracts | 406 | 162 | 568 |
- of which presented as assets | 514 | 166 | 680 |
- of which presented as liabilities | 108 | 4 | 112 |
Total life and non-life reinsurance contracts | 406 | 162 | 568 |
2025 | Estimates of the present value of future cash flows | Risk adjustment | Contractual service margin | Total General Model |
|---|---|---|---|---|
\u2013 opening balance presented as assets | -262 | 139 | 637 | 514 |
\u2013 opening balance presented as liabilities | 196 | -5 | -83 | 108 |
Net opening balance | -458 | 144 | 720 | 406 |
\u2013 reinsurance contracts initially recognised in the year | -28 | 26 | 2 | 0 |
\u2013 changes in estimates that adjust the contractual service margin | -450 | 61 | 389 | 0 |
Changes that relate to future service | -478 | 87 | 391 | 0 |
\u2013 release to profit or loss | \u00a0 | -19 | -112 | -131 |
\u2013 experience adjustments not adjusting the contractual service margin | 7 | \u00a0 | \u00a0 | 7 |
Changes that relate to current service | 7 | -19 | -112 | -124 |
\u2013 changes in reinsurance recoveries previous years | 2 | \u00a0 | \u00a0 | 2 |
Changes that relate to past service | 2 | 0 | 0 | 2 |
\u2013 finance result through profit or loss | 43 | -47 | 5 | 1 |
\u2013 finance result recognised in OCI | 44 | 12 | \u00a0 | 56 |
Finance result from reinsurance contracts | 87 | -35 | 5 | 57 |
\u2013 reinsurance premiums paid | 2,090 | \u00a0 | \u00a0 | 2,090 |
\u2013 reinsurance recoveries received | -2,067 | \u00a0 | \u00a0 | -2,067 |
\u2013 changes in the composition of the group and other changes | -1 | \u00a0 | \u00a0 | -1 |
Cash flows | 22 | 0 | 0 | 22 |
Foreign currency exchange differences | -22 | 1 | -10 | -31 |
Net closing balance | -840 | 178 | 994 | 332 |
\u2013 closing balance presented as assets | -668 | 174 | 895 | 401 |
\u2013 closing balance presented as liabilities | 172 | -4 | -99 | 69 |
Net closing balance | -840 | 178 | 994 | 332 |
2024 | Estimates of the present value of future cash flows | Risk adjustment | Contractual service margin | Total General Model |
|---|---|---|---|---|
\u2013 opening balance presented as assets | -266 | 281 | 475 | 490 |
\u2013 opening balance presented as liabilities | 211 | -10 | -57 | 144 |
Net opening balance | -477 | 291 | 532 | 346 |
\u2013 reinsurance contracts initially recognised in the year | 26 | 12 | -38 | 0 |
\u2013 changes in estimates that adjust the contractual service margin | -133 | -178 | 311 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -1 | \u00a0 | \u00a0 | -1 |
Changes that relate to future service | -108 | -166 | 273 | -1 |
\u2013 release to profit or loss | \u00a0 | -11 | -88 | -99 |
\u2013 experience adjustments not adjusting the contractual service margin | -16 | \u00a0 | \u00a0 | -16 |
Changes that relate to current service | -16 | -11 | -88 | -115 |
\u2013 changes in reinsurance recoveries previous years | 6 | \u00a0 | \u00a0 | 6 |
Changes that relate to past service | 6 | 0 | 0 | 6 |
\u2013 finance result through profit or loss | -38 | 5 | 4 | -29 |
\u2013 finance result recognised in OCI | 38 | 25 | \u00a0 | 63 |
Finance result from reinsurance contracts | 0 | 30 | 4 | 34 |
\u2013 reinsurance premiums paid | 1,945 | \u00a0 | \u00a0 | 1,945 |
\u2013 reinsurance recoveries received | -1,799 | \u00a0 | \u00a0 | -1,799 |
Cash flows | 146 | 0 | 0 | 146 |
Foreign currency exchange differences | -9 | \u00a0 | -1 | -10 |
Net closing balance | -458 | 144 | 720 | 406 |
\u2013 closing balance presented as assets | -262 | 139 | 637 | 514 |
\u2013 closing balance presented as liabilities | 196 | -5 | -83 | 108 |
Net closing balance | -458 | 144 | 720 | 406 |
Accounting for reinsurance contracts held is mostly similar to the accounting for insurance contracts issued, with the following specific considerations:
Reinsurance contracts held can be measured applying the General Model or the Premium Allocation Approach. The Variable Fee Approach cannot be applied to reinsurance contracts held. Reinsurance contracts held cannot be onerous.
Expected reinsurance recoveries include a provision for non-performance risk of the reinsurer. Changes in non-performance risk are accounted for in profit or loss. Non-performance risk includes insolvency risk, risks related to disputes, further negotiations and collateral losses.
Losses on reinsured insurance contracts may be (partially) offset with a reinsurance loss-recovery component. This applies if the underlying insurance contracts are onerous upon initial recognition or if a change in estimates leads to onerous insurance contracts and the same change in estimates has an offsetting effect on the reinsurance contract held.
Debt instruments issued, subordinated debt, and other borrowed funds are recognised initially at their issue proceeds (fair value of consideration received) net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between proceeds, net of transaction costs and the redemption value is recognised in the profit and loss account over the period of the borrowings using the effective interest method.
If NN Group N.V. purchases its own debt, it is derecognised from the balance sheet and the difference between the carrying value of the liability and the consideration paid is recognised in the profit and loss account.
Financial liabilities include only instruments of which the terms and conditions represent a contractual obligation to pay interest and/or principal. Instruments that are similar in substance, but of which the terms and conditions do not include a contractual obligation to pay interest and principal are classified as equity.
Interest rate | Year of Issue | Due date | First call date | Notional amount | Balance sheet value | ||
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2025 | 2024 | 2025 | 2024 |
1.625% | 2017 | 1-6-2027 | 1-3-2027 | 600 | 600 | 599 | 599 |
0.875% | 2021 | 23-11-2031 | 23-5-2031 | 600 | 600 | 598 | 597 |
Debt instruments issued | \u00a0 | \u00a0 | \u00a0 | 1,197 | 1,196 |
Whilst retaining full flexibility and based on current holding company cash flow planning, NN announced in February 2026 that it does not intend to refinance the EUR 600 million in senior debt, originally used for acquiring Delta Lloyd, which is set to mature in 2027.
Interest rate | Year of Issue | Due date | First call date | Notional amount | Balance sheet value | ||
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2025 | 2024 | 2025 | 2024 |
4.625% | 2017 | 13-1-2048 | 13-1-2028 | 850 | 850 | 847 | 845 |
5.250% | 2022 | 1-3-2043 | 30-8-2032 | 500 | 500 | 495 | 494 |
6.000% | 2023 | 3-11-2043 | 3-5-2033 | 1,000 | 1,000 | 1,006 | 1,007 |
Subordinated debt | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,348 | 2,346 |
The above subordinated debt instruments have been issued to raise hybrid capital. Under IFRS-EU these debt instruments are classified as liabilities. They are considered capital for regulatory purposes. All subordinated debt is euro denominated.
Debt instruments issued, subordinated debt, and other borrowed funds are recognised initially at their issue proceeds (fair value of consideration received) net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between proceeds, net of transaction costs and the redemption value is recognised in the profit and loss account over the period of the borrowings using the effective interest method.
If NN Group N.V. purchases its own debt, it is derecognised from the balance sheet and the difference between the carrying value of the liability and the consideration paid is recognised in the profit and loss account.
Financial liabilities include only instruments of which the terms and conditions represent a contractual obligation to pay interest and/or principal. Instruments that are similar in substance, but of which the terms and conditions do not include a contractual obligation to pay interest and principal are classified as equity.
Interest rate | Year of Issue | Due date | First call date | Notional amount | Balance sheet value | ||
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2025 | 2024 | 2025 | 2024 |
1.625% | 2017 | 1-6-2027 | 1-3-2027 | 600 | 600 | 599 | 599 |
0.875% | 2021 | 23-11-2031 | 23-5-2031 | 600 | 600 | 598 | 597 |
Debt instruments issued | \u00a0 | \u00a0 | \u00a0 | 1,197 | 1,196 |
Whilst retaining full flexibility and based on current holding company cash flow planning, NN announced in February 2026 that it does not intend to refinance the EUR 600 million in senior debt, originally used for acquiring Delta Lloyd, which is set to mature in 2027.
Debt instruments issued, subordinated debt, and other borrowed funds are recognised initially at their issue proceeds (fair value of consideration received) net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between proceeds, net of transaction costs and the redemption value is recognised in the profit and loss account over the period of the borrowings using the effective interest method.
If NN Group N.V. purchases its own debt, it is derecognised from the balance sheet and the difference between the carrying value of the liability and the consideration paid is recognised in the profit and loss account.
Financial liabilities include only instruments of which the terms and conditions represent a contractual obligation to pay interest and/or principal. Instruments that are similar in substance, but of which the terms and conditions do not include a contractual obligation to pay interest and principal are classified as equity.
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If NN Group N.V. purchases its own debt, it is derecognised from the balance sheet and the difference between the carrying value of the liability and the consideration paid is recognised in the profit and loss account.
Financial liabilities include only instruments of which the terms and conditions represent a contractual obligation to pay interest and/or principal. Instruments that are similar in substance, but of which the terms and conditions do not include a contractual obligation to pay interest and principal are classified as equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i11336": { "value": "Interest rate | Year of Issue | Due date | First call date | Notional amount | Balance sheet value | ||
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2025 | 2024 | 2025 | 2024 |
4.625% | 2017 | 13-1-2048 | 13-1-2028 | 850 | 850 | 847 | 845 |
5.250% | 2022 | 1-3-2043 | 30-8-2032 | 500 | 500 | 495 | 494 |
6.000% | 2023 | 3-11-2043 | 3-5-2033 | 1,000 | 1,000 | 1,006 | 1,007 |
Subordinated debt | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,348 | 2,346 |
The above subordinated debt instruments have been issued to raise hybrid capital. Under IFRS-EU these debt instruments are classified as liabilities. They are considered capital for regulatory purposes. All subordinated debt is euro denominated.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Credit institutions | 4,025 | 1,856 |
Other | 5,850 | 6,131 |
Other borrowed funds | 9,875 | 7,987 |
Other borrowed funds includes the funding of the consolidated securitisation programmes as disclosed in Note 43 Structured entities and repo transactions used for liquidity management purposes.
During 2024, NN Bank redeemed EUR 1,000 million bonds under its Covered Bond Programme.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Savings | 7,575 | 7,724 |
Bank annuities | 10,340 | 9,750 |
Customer deposits | 17,915 | 17,474 |
Customers have not entrusted any funds to NN on terms other than those prevailing in the normal course of business. All customer deposits are interest-bearing.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Customer deposits \u2013 opening balance | 17,474 | 16,460 |
Deposits received | 4,641 | 4,694 |
Withdrawals | -4,164 | -3,661 |
Amortisation | -17 | -19 |
Fair value changes recognised on hedged items | -19 | \u00a0 |
Customer deposits\u2013 closing balance | 17,915 | 17,474 |
Derivatives are recognised at fair value. Derivatives are presented as assets when the fair value is positive and as liabilities when the fair value is negative.
The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. NN designates certain derivatives as hedges of highly probable future cash flows attributable to a recognised asset or liability or a forecast transaction (cash flow hedge), hedges of the fair value of recognised assets or liabilities or firm commitments (fair value hedge), or hedges of a net investment in a foreign operation. Hedge accounting is used for derivatives designated in this way provided certain criteria are met.
Reference is made to Note 34 Hedge accounting for further information on hedge accounting.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Derivatives used in: | \u00a0 | \u00a0 |
\u2013 fair value hedges | 6 | 4 |
\u2013 cash flow hedges | 94 | 630 |
\u2013 hedges of net investments in foreign operations | 1 | \u00a0 |
Other derivatives | 1,229 | 2,050 |
Derivatives (assets) | 1,330 | 2,684 |
Other derivatives comprises derivatives for which no hedge accounting is applied.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Derivatives used in: | \u00a0 | \u00a0 |
\u2013 fair value hedges | \u00a0 | 1 |
\u2013 cash flow hedges | 2,564 | 1,463 |
\u2013 hedges of net investments in foreign operations | 2 | 2 |
Other derivatives | 1,794 | 2,205 |
Derivatives (liabilities) | 4,360 | 3,671 |
Derivatives are recognised at fair value. Derivatives are presented as assets when the fair value is positive and as liabilities when the fair value is negative.
The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. NN designates certain derivatives as hedges of highly probable future cash flows attributable to a recognised asset or liability or a forecast transaction (cash flow hedge), hedges of the fair value of recognised assets or liabilities or firm commitments (fair value hedge), or hedges of a net investment in a foreign operation. Hedge accounting is used for derivatives designated in this way provided certain criteria are met.
Reference is made to Note 34 Hedge accounting for further information on hedge accounting.
NN uses derivatives for effective portfolio management and the management of its asset and liability portfolios. The objective of economic hedging is to enter into positions with an opposite risk profile to an identified exposure to reduce that exposure.
For hedge accounting NN continues to apply the IAS 39 hedge accounting requirements. The accounting treatment of hedge transactions varies according to the nature of the instrument hedged and whether the hedge qualifies under the IFRS-EU hedge accounting rules. Derivatives that qualify for hedge accounting under IFRS-EU are classified and reported in accordance with the nature of the hedged item hedged and the type of IFRS-EU hedge model that is applicable. The three models applicable under IFRS-EU are: cash flow hedge accounting, fair value hedge accounting and net investment hedge accounting.
To qualify for hedge accounting under IFRS-EU, strict criteria must be met. Certain hedges that are economically effective from a risk management perspective do not qualify for hedge accounting under IFRS-EU. The fair value changes of derivatives relating to such non-qualifying hedges are taken to the profit and loss account. However, in certain cases, NN mitigates the profit or loss volatility by designating hedged assets and liabilities at fair value through profit or loss. If hedge accounting is applied under IFRSEU, it is possible that during the hedge a hedge relationship no longer qualifies for hedge accounting and hedge accounting cannot be continued, even if the hedge remains economically effective. As a result, the volatility arising from undertaking economic hedging in the profit and loss account may be higher than would be expected from an economic point of view.
At the inception of the hedge transaction NN documents the relationship between hedging instruments and hedged items, its risk management objectives, together with the methods selected to assess hedge effectiveness. In addition, NN documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flows of the hedged items.
With respect to exchange rate and interest rate derivative contracts, the notional or contractual amount of these instruments is indicative of the nominal value of transactions outstanding at the balance sheet date; however they do not represent amounts at risk.
In 2017, NN entered into a longevity hedge, based on a general index of Dutch mortality. The maximum pay-out of the hedge amounts to EUR 100 million, payable after twenty years. The hedge is financed by annual premium payments to the counterparty. The longevity hedge is accounted for as derivative. The hedge reduces the impact of longevity trend scenarios implying more improvement in life expectancy. The regulator gave approval to include the effects of this specific hedge on the SCR. The purpose of the hedge is to reduce the longevity risk.
NN\u2019s hedge accounting consists mainly of cash flow hedge accounting. NN\u2019s cash flow hedges principally consist of (forward) interest rate swaps and cross-currency interest rate swaps that are used to protect against its exposure to variability in future interest cash flows on assets and liabilities that bear interest at variable rates or are expected to be refunded or reinvested in the future. The amounts and timing of future cash flows, representing both principal and interest flows, are projected for each portfolio of financial assets and liabilities, based on contractual terms and other relevant factors including estimates of prepayments and defaults.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised in Other Comprehensive Income (equity) in \u2018Cash flow hedge reserve\u2019. Interest income and expenses on these derivatives are recognised in the profit and loss account consistent with the manner in which the forecast cash flows affect Net result. The gain or loss relating to the ineffective portion is recognised immediately in the profit and loss account. Amounts accumulated in equity are recycled to the profit and loss account in the periods in which the hedged item affects Net result. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the profit and loss account. When a forecast transaction is no longer expected to occur, the cumulative gain or loss previously reported in equity is transferred immediately to the profit and loss account.
For the year ended 31 December 2025, NN recognised EUR -2,040 million (2024: EUR 44 million) in equity as effective fair value changes on derivatives under cash flow hedge accounting. The balance of the cash flow hedge reserve in equity as at 31 December 2025 is EUR 1,150 million (2024: EUR 3,893 million) gross and EUR 846 million (2024: EUR 2,886 million) after deferred tax. This cash flow hedge reserve will fluctuate with the fair value of the underlying derivatives and will be reflected in the profit and loss account under Interest income/expenses over the remaining term of the underlying hedged items. The cash flow hedge reserve relates to a large number of derivatives and hedged items with varying maturities up to 45 years with the largest concentrations in the range 1 year to 3 years. Accounting ineffectiveness on derivatives designated under cash flow hedge accounting resulted in EUR -2 million gain/loss (2024: EUR1 million gain) which was recognised in the profit and loss account.
As at 31 December 2025, the fair value of outstanding derivatives designated under cash flow hedge accounting was EUR -2,470 million (2024: EUR -832 million), presented in the balance sheet as EUR 94 million (2024: EUR 631 million) positive fair value under assets and EUR 2,564 million (2024: EUR 1,463 million) negative fair value under liabilities. The notional or contractual amount of these instruments amount to EUR 18,558 million.
As at 31 December 2025, there were nil (2024: nil), non-derivatives designated as hedging instruments for cash flow hedge accounting purposes. Included in \u2018Interest income and Interest expenses on non-trading derivatives\u2019 is EUR 119 million (2024: EUR 129 million) and EUR 147 million (2024: EUR 181 million), respectively, relating to derivatives used in cash flow hedges.
NN\u2019s fair value hedges principally consist of interest rate swaps and cross-currency interest rate swaps that are used to protect against changes in the fair value of fixed-rate instruments due to movements in market interest rates.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the profit and loss account, together with the effective portion of the fair value adjustments to the hedged item attributable to the hedged risk. As a result, only the net accounting ineffectiveness has an impact on the net result. If the hedge relationship no longer meets the criteria for hedge accounting, the cumulative adjustment of the hedged item is, in the case of interest-bearing instruments, amortised through the profit and loss account over the remaining term of the original hedge or recognised directly when the hedged item is derecognised. For non-interest-bearing instruments, the cumulative adjustment of the hedged item is recognised in the profit and loss account only when the hedged item is derecognised.
For the year ended 31 December 2025, NN recognised EUR 272 million (2024: EUR-115 million) of fair value changes on derivatives designated under fair value hedge accounting in the profit and loss account. This amount was offset by EUR -282 million (2024: EUR 82 million) fair value changes recognised on hedged items. This resulted in EUR -10 million gain/loss (2024: EUR -33 million loss) net accounting ineffectiveness recognised in the profit and loss account.
As at 31 December 2025, the fair value of outstanding derivatives designated under fair value hedge accounting was EUR 6 million (2024: EUR 3 million), presented in the balance sheet as EUR 6 million (2024: EUR 4 million) positive fair value under assets and EUR 0 million (2023: EUR 1 million) negative fair value under liabilities. The notional or contractual amount of these instruments amount to EUR 7,550 million.
NN applies fair value hedge accounting for portfolio hedges of interest rate risk (macro hedging) under the EU \u2018carve out\u2019 of IFRS-EU. The EU \u2018carve-out\u2019 for macro hedging enables a group of derivatives (or proportions) to be viewed in combination and jointly designated as the hedging instrument and removes some of the limitations in fair value hedge accounting relating to hedging core deposits and under hedging strategies. Under the IFRS-EU \u2018carve-out\u2019, hedge accounting may be applied to core deposits and ineffectiveness only arises when the revised estimate of the amount of cash flows in scheduled time buckets falls below the designated amount of that bucket. NN applies the IFRS-EU \u2018carve-out\u2019 to hedge the interest rate risk of mortgage loans. The hedging activities are designated under a portfolio fair value hedge on the mortgages, under IFRS-EU.
Hedges of net investments in foreign operations are accounted for in a similar way to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in Other Comprehensive Income (equity) and the gain or loss relating to the ineffective portion is recognised immediately in the profit and loss account. Gains and losses in equity are included in the profit and loss account when the foreign operation is disposed.
Other liabilities include reorganisation provisions, litigation provisions and other provisions (included in the line provisions below). Reorganisation provisions include employee termination benefits when NN is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Provisions are discounted when the effect of the time value of money is significant, using a before tax discount rate. The determination of provisions is an inherently uncertain process involving estimates regarding amounts and timing of cash flows.
The net defined benefit asset or liability recognised in the balance sheet in respect of defined benefit pension plans is the fair value of the plan assets less the present value of the defined benefit obligation at the balance sheet date. Plan assets are measured at fair value at the balance sheet date. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
For defined contribution plans, NN pays contributions to publicly or privately administered pension plans on a mandatory, contractual or voluntary basis. NN has no further payment obligations once the contributions have been paid. The contributions are recognised as staff expenses in the profit and loss account when they are due.
Some NN companies provide post-employment benefits to certain employees and former employees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans.
Share-based payment expenses are recognised as staff expenses over the vesting period. A corresponding increase in equity is recognised for equity-settled share-based payment transactions. The fair value of equity-settled share-based payment transactions is measured at the grant date. For cash-settled share-based payment transactions, a liability is recognised at fair value; this fair value is remeasured at every balance sheet date.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax payable | 52 | 26 |
Net defined benefit liability | 76 | 41 |
Other post-employment benefits | 3 | 4 |
Other staff-related liabilities | 85 | 87 |
Other taxation and social security contributions | 105 | 103 |
Lease liabilities | 269 | 229 |
Accrued interest | 351 | 483 |
Costs payable | 297 | 285 |
Provisions | 382 | 463 |
Amounts to be settled | 23 | 29 |
Cash collateral amounts received | 208 | 1,454 |
Other | 597 | 569 |
Other liabilities | 2,448 | 3,773 |
Other staff-related liabilities include provisions for vacation leave, variable compensation, jubilee and disability/illness.
Cash collateral amounts received relate to collateralised derivatives.
Other mainly relates to year-end accruals in the normal course of business.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Fair value of plan assets | 26 | 71 |
Defined benefit obligation | 102 | 112 |
Net defined benefit liability recognised in the balance sheet (funded status) | 76 | 41 |
\u2013 Other assets | \u00a0 | \u00a0 |
\u2013 Other liabilities | 76 | 41 |
Net defined benefit liability | 76 | 41 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Provisions \u2013 opening balance | 463 | 524 |
Additions | 51 | 32 |
Releases | -14 | -25 |
Charges | -109 | -71 |
Changes in the composition of the group and other changes | -7 | 3 |
Exchange rate differences | -2 | \u00a0 |
Provisions \u2013 closing balance | 382 | 463 |
Provisions include mainly the provision for the settlement related to Unit-linked products in the Netherlands and reorganisation provisions. Reference is made to Note 41 Legal proceedings for Unit-linked. Reorganisation provisions were recognised for operations in the Netherlands for the cost of workforce reductions. Additions to the reorganisation provision were recognised in 2025 and 2024 due to additional initiatives announced during the year.
Other liabilities include reorganisation provisions, litigation provisions and other provisions (included in the line provisions below). Reorganisation provisions include employee termination benefits when NN is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Provisions are discounted when the effect of the time value of money is significant, using a before tax discount rate. The determination of provisions is an inherently uncertain process involving estimates regarding amounts and timing of cash flows.
The net defined benefit asset or liability recognised in the balance sheet in respect of defined benefit pension plans is the fair value of the plan assets less the present value of the defined benefit obligation at the balance sheet date. Plan assets are measured at fair value at the balance sheet date. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
For defined contribution plans, NN pays contributions to publicly or privately administered pension plans on a mandatory, contractual or voluntary basis. NN has no further payment obligations once the contributions have been paid. The contributions are recognised as staff expenses in the profit and loss account when they are due.
Some NN companies provide post-employment benefits to certain employees and former employees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans.
Share-based payment expenses are recognised as staff expenses over the vesting period. A corresponding increase in equity is recognised for equity-settled share-based payment transactions. The fair value of equity-settled share-based payment transactions is measured at the grant date. For cash-settled share-based payment transactions, a liability is recognised at fair value; this fair value is remeasured at every balance sheet date.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax payable | 52 | 26 |
Net defined benefit liability | 76 | 41 |
Other post-employment benefits | 3 | 4 |
Other staff-related liabilities | 85 | 87 |
Other taxation and social security contributions | 105 | 103 |
Lease liabilities | 269 | 229 |
Accrued interest | 351 | 483 |
Costs payable | 297 | 285 |
Provisions | 382 | 463 |
Amounts to be settled | 23 | 29 |
Cash collateral amounts received | 208 | 1,454 |
Other | 597 | 569 |
Other liabilities | 2,448 | 3,773 |
Other staff-related liabilities include provisions for vacation leave, variable compensation, jubilee and disability/illness.
Cash collateral amounts received relate to collateralised derivatives.
Other mainly relates to year-end accruals in the normal course of business.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Fair value of plan assets | 26 | 71 |
Defined benefit obligation | 102 | 112 |
Net defined benefit liability recognised in the balance sheet (funded status) | 76 | 41 |
\u2013 Other assets | \u00a0 | \u00a0 |
\u2013 Other liabilities | 76 | 41 |
Net defined benefit liability | 76 | 41 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Provisions \u2013 opening balance | 463 | 524 |
Additions | 51 | 32 |
Releases | -14 | -25 |
Charges | -109 | -71 |
Changes in the composition of the group and other changes | -7 | 3 |
Exchange rate differences | -2 | \u00a0 |
Provisions \u2013 closing balance | 382 | 463 |
Provisions include mainly the provision for the settlement related to Unit-linked products in the Netherlands and reorganisation provisions. Reference is made to Note 41 Legal proceedings for Unit-linked. Reorganisation provisions were recognised for operations in the Netherlands for the cost of workforce reductions. Additions to the reorganisation provision were recognised in 2025 and 2024 due to additional initiatives announced during the year.
Other liabilities include reorganisation provisions, litigation provisions and other provisions (included in the line provisions below). Reorganisation provisions include employee termination benefits when NN is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Provisions are discounted when the effect of the time value of money is significant, using a before tax discount rate. The determination of provisions is an inherently uncertain process involving estimates regarding amounts and timing of cash flows.
The net defined benefit asset or liability recognised in the balance sheet in respect of defined benefit pension plans is the fair value of the plan assets less the present value of the defined benefit obligation at the balance sheet date. Plan assets are measured at fair value at the balance sheet date. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
For defined contribution plans, NN pays contributions to publicly or privately administered pension plans on a mandatory, contractual or voluntary basis. NN has no further payment obligations once the contributions have been paid. The contributions are recognised as staff expenses in the profit and loss account when they are due.
Some NN companies provide post-employment benefits to certain employees and former employees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans.
Share-based payment expenses are recognised as staff expenses over the vesting period. A corresponding increase in equity is recognised for equity-settled share-based payment transactions. The fair value of equity-settled share-based payment transactions is measured at the grant date. For cash-settled share-based payment transactions, a liability is recognised at fair value; this fair value is remeasured at every balance sheet date.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax payable | 52 | 26 |
Net defined benefit liability | 76 | 41 |
Other post-employment benefits | 3 | 4 |
Other staff-related liabilities | 85 | 87 |
Other taxation and social security contributions | 105 | 103 |
Lease liabilities | 269 | 229 |
Accrued interest | 351 | 483 |
Costs payable | 297 | 285 |
Provisions | 382 | 463 |
Amounts to be settled | 23 | 29 |
Cash collateral amounts received | 208 | 1,454 |
Other | 597 | 569 |
Other liabilities | 2,448 | 3,773 |
Other staff-related liabilities include provisions for vacation leave, variable compensation, jubilee and disability/illness.
Cash collateral amounts received relate to collateralised derivatives.
Other mainly relates to year-end accruals in the normal course of business.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Fair value of plan assets | 26 | 71 |
Defined benefit obligation | 102 | 112 |
Net defined benefit liability recognised in the balance sheet (funded status) | 76 | 41 |
\u2013 Other assets | \u00a0 | \u00a0 |
\u2013 Other liabilities | 76 | 41 |
Net defined benefit liability | 76 | 41 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Provisions \u2013 opening balance | 463 | 524 |
Additions | 51 | 32 |
Releases | -14 | -25 |
Charges | -109 | -71 |
Changes in the composition of the group and other changes | -7 | 3 |
Exchange rate differences | -2 | \u00a0 |
Provisions \u2013 closing balance | 382 | 463 |
Provisions include mainly the provision for the settlement related to Unit-linked products in the Netherlands and reorganisation provisions. Reference is made to Note 41 Legal proceedings for Unit-linked. Reorganisation provisions were recognised for operations in the Netherlands for the cost of workforce reductions. Additions to the reorganisation provision were recognised in 2025 and 2024 due to additional initiatives announced during the year.
Other liabilities include reorganisation provisions, litigation provisions and other provisions (included in the line provisions below). Reorganisation provisions include employee termination benefits when NN is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Provisions are discounted when the effect of the time value of money is significant, using a before tax discount rate. The determination of provisions is an inherently uncertain process involving estimates regarding amounts and timing of cash flows.
The net defined benefit asset or liability recognised in the balance sheet in respect of defined benefit pension plans is the fair value of the plan assets less the present value of the defined benefit obligation at the balance sheet date. Plan assets are measured at fair value at the balance sheet date. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
For defined contribution plans, NN pays contributions to publicly or privately administered pension plans on a mandatory, contractual or voluntary basis. NN has no further payment obligations once the contributions have been paid. The contributions are recognised as staff expenses in the profit and loss account when they are due.
Some NN companies provide post-employment benefits to certain employees and former employees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans.
Share-based payment expenses are recognised as staff expenses over the vesting period. A corresponding increase in equity is recognised for equity-settled share-based payment transactions. The fair value of equity-settled share-based payment transactions is measured at the grant date. For cash-settled share-based payment transactions, a liability is recognised at fair value; this fair value is remeasured at every balance sheet date.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income tax payable | 52 | 26 |
Net defined benefit liability | 76 | 41 |
Other post-employment benefits | 3 | 4 |
Other staff-related liabilities | 85 | 87 |
Other taxation and social security contributions | 105 | 103 |
Lease liabilities | 269 | 229 |
Accrued interest | 351 | 483 |
Costs payable | 297 | 285 |
Provisions | 382 | 463 |
Amounts to be settled | 23 | 29 |
Cash collateral amounts received | 208 | 1,454 |
Other | 597 | 569 |
Other liabilities | 2,448 | 3,773 |
Other staff-related liabilities include provisions for vacation leave, variable compensation, jubilee and disability/illness.
Cash collateral amounts received relate to collateralised derivatives.
Other mainly relates to year-end accruals in the normal course of business.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Fair value of plan assets | 26 | 71 |
Defined benefit obligation | 102 | 112 |
Net defined benefit liability recognised in the balance sheet (funded status) | 76 | 41 |
\u2013 Other assets | \u00a0 | \u00a0 |
\u2013 Other liabilities | 76 | 41 |
Net defined benefit liability | 76 | 41 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Provisions \u2013 opening balance | 463 | 524 |
Additions | 51 | 32 |
Releases | -14 | -25 |
Charges | -109 | -71 |
Changes in the composition of the group and other changes | -7 | 3 |
Exchange rate differences | -2 | \u00a0 |
Provisions \u2013 closing balance | 382 | 463 |
Provisions include mainly the provision for the settlement related to Unit-linked products in the Netherlands and reorganisation provisions. Reference is made to Note 41 Legal proceedings for Unit-linked. Reorganisation provisions were recognised for operations in the Netherlands for the cost of workforce reductions. Additions to the reorganisation provision were recognised in 2025 and 2024 due to additional initiatives announced during the year.
Other liabilities include reorganisation provisions, litigation provisions and other provisions (included in the line provisions below). Reorganisation provisions include employee termination benefits when NN is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Provisions are discounted when the effect of the time value of money is significant, using a before tax discount rate. The determination of provisions is an inherently uncertain process involving estimates regarding amounts and timing of cash flows.
The net defined benefit asset or liability recognised in the balance sheet in respect of defined benefit pension plans is the fair value of the plan assets less the present value of the defined benefit obligation at the balance sheet date. Plan assets are measured at fair value at the balance sheet date. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
For defined contribution plans, NN pays contributions to publicly or privately administered pension plans on a mandatory, contractual or voluntary basis. NN has no further payment obligations once the contributions have been paid. The contributions are recognised as staff expenses in the profit and loss account when they are due.
Some NN companies provide post-employment benefits to certain employees and former employees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans.
Share-based payment expenses are recognised as staff expenses over the vesting period. A corresponding increase in equity is recognised for equity-settled share-based payment transactions. The fair value of equity-settled share-based payment transactions is measured at the grant date. For cash-settled share-based payment transactions, a liability is recognised at fair value; this fair value is remeasured at every balance sheet date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i11498": { "value": "Other liabilities include reorganisation provisions, litigation provisions and other provisions (included in the line provisions below). Reorganisation provisions include employee termination benefits when NN is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Provisions are discounted when the effect of the time value of money is significant, using a before tax discount rate. The determination of provisions is an inherently uncertain process involving estimates regarding amounts and timing of cash flows.
The net defined benefit asset or liability recognised in the balance sheet in respect of defined benefit pension plans is the fair value of the plan assets less the present value of the defined benefit obligation at the balance sheet date. Plan assets are measured at fair value at the balance sheet date. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
For defined contribution plans, NN pays contributions to publicly or privately administered pension plans on a mandatory, contractual or voluntary basis. NN has no further payment obligations once the contributions have been paid. The contributions are recognised as staff expenses in the profit and loss account when they are due.
Some NN companies provide post-employment benefits to certain employees and former employees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans.
Share-based payment expenses are recognised as staff expenses over the vesting period. A corresponding increase in equity is recognised for equity-settled share-based payment transactions. The fair value of equity-settled share-based payment transactions is measured at the grant date. For cash-settled share-based payment transactions, a liability is recognised at fair value; this fair value is remeasured at every balance sheet date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i11506": { "value": "Share-based payment expenses are recognised as staff expenses over the vesting period. A corresponding increase in equity is recognised for equity-settled share-based payment transactions. The fair value of equity-settled share-based payment transactions is measured at the grant date. For cash-settled share-based payment transactions, a liability is recognised at fair value; this fair value is remeasured at every balance sheet date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i11768": { "value": "2025 | Contracts issued after transition and full retrospective approach | Modified retrospective approach | Fair value approach | Total |
|---|---|---|---|---|
Release of contractual service margin | 431 | 124 | 444 | 999 |
Release of risk adjustment | 45 | 16 | 81 | 142 |
Expected claims and benefits | 1,271 | 81 | 4,248 | 5,600 |
Expected attributable expenses | 660 | 111 | 533 | 1,304 |
Recovery of acquisition costs | 355 | 75 | 2 | 432 |
Experience adjustments for premiums that relate to current or past service | 17 | \u00a0 | \u00a0 | 17 |
Insurance income General Model and Variable Fee Approach | 2,779 | 407 | 5,308 | 8,494 |
Insurance income Premium Allocation Approach | \u00a0 | \u00a0 | \u00a0 | 3,023 |
Total insurance income | \u00a0 | \u00a0 | \u00a0 | 11,517 |
2024 | Contracts issued after transition and full retrospective approach | Modified retrospective approach | Fair value approach | Total |
|---|---|---|---|---|
Release of contractual service margin | 321 | 138 | 398 | 857 |
Release of risk adjustment | 37 | 17 | 80 | 134 |
Expected claims and benefits | 909 | 88 | 4,142 | 5,139 |
Expected attributable expenses | 574 | 125 | 581 | 1,280 |
Recovery of acquisition costs | 325 | 89 | 1 | 415 |
Experience adjustments for premiums that relate to current or past service | 15 | \u00a0 | 3 | 18 |
Insurance income General Model and Variable Fee Approach | 2,181 | 457 | 5,205 | 7,843 |
Insurance income Premium Allocation Approach | \u00a0 | \u00a0 | \u00a0 | 2,863 |
Total insurance income | \u00a0 | \u00a0 | \u00a0 | 10,706 |
Interest income and expenses are recognised in the profit and loss account using the effective interest method. When calculating the effective interest rate, NN estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. Once a financial asset, or a group of similar financial assets is in default 'Stage 3', interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Interest income and expenses from derivatives are classified as interest income and interest expenses in the profit and loss, except for interest income and expenses on derivatives for which no hedge accounting is applied.
The latter is classified in \u2018Result on derivatives and hedging\u2019, together with the changes in the (clean) fair value of these derivatives.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest income from investments in debt securities | 1,813 | 1,764 |
Interest income from mortgage loans | 1,405 | 1,378 |
Interest income from other loans | 292 | 367 |
Interest income on (hedging) derivatives | 564 | 700 |
Other interest income | 180 | 289 |
Interest income | 4,254 | 4,498 |
Income from investments in real estate | 103 | 109 |
Dividend income on equity securities | 470 | 439 |
Other investment income | 6 | 5 |
Total other investment income | 579 | 553 |
Investment income | 4,833 | 5,051 |
Realised gains (losses) on Investments at cost and at fair value through Other Comprehensive Income | -311 | -1,038 |
Gains (losses) on investments at fair value through profit or loss | 2,309 | 5,087 |
Gains (losses) on investments in real estate | 16 | -13 |
Gains (losses) on Investments at cost, at fair value through OCI and at fair value through profit and loss | 2,014 | 4,036 |
Share of result of investments in associates and joint ventures | 520 | 579 |
Impairments and reversal of impairments on investments | -26 | 13 |
Result on derivatives and hedging | -56 | -849 |
Foreign currency exchange result | -852 | 673 |
Other investment result | -414 | 416 |
Investment result | 6,433 | 9,503 |
Gains (losses) on investments at fair value through profit or loss include gains (losses) related to investments held for risk of policyholders for EUR 2,390 million (2024: EUR 4,841 million). These gains (losses) are mostly offset by changes in fair value of underlying items as presented in \u2018Finance result on (re)insurance contracts\u2019.
Dividend income on equity securities includes EUR 60 million of dividend relating to equity securities at fair value through Other Comprehensive Income held at 31 December 2025 (31 December 2024: EUR 59 million) and EUR 8 million of dividend relating to equity securities at fair value through Other Comprehensive Income derecognised during 2025 (2024: EUR 16 million).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Netherlands Life | 27 | -2 |
Netherlands Non-life | \u00a0 | -4 |
Insurance Europe | \u00a0 | -2 |
Japan Life | -1 | -2 |
Banking | \u00a0 | -2 |
Other | \u00a0 | -1 |
Total | 26 | -13 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Change in fair value of derivatives relating to: | \u00a0 | \u00a0 |
\u2013 fair value hedges | 272 | -115 |
\u2013 cash flow hedges (ineffective portion) | -2 | 1 |
\u2013 other derivatives | -44 | -817 |
Net result on derivatives | 226 | -931 |
Change in fair value of assets and liabilities (hedged items) | -282 | 82 |
Result on derivatives and hedging | -56 | -849 |
Included in \u2018Results on derivatives and hedging\u2019 are the fair value movements on derivatives and other assets accounted for at fair value through profit or loss used to economically hedge exposures, but for which no hedge accounting is applied. These financial assets hedge exposures in insurance contracts. The fair value movements on the financial assets are influenced by changes in the market conditions, such as share prices, interest rates and currency exchange rates. The change in fair value of the financial assets is largely offset by changes in insurance contracts, which are included in \u2018finance result\u2019 in the profit or loss account (when using the risk mitigation option) or in Other Comprehensive Income (for contracts accounted for under the General Model when using the OCI option). Reference is made to Note 12 Insurance contracts, Note 11 Equity and Note 24 Finance result.
Valuation results on derivatives are reflected in the Consolidated statement of cash flows in the section \u2018Result before tax\u2019, in the line item \u2018Adjusted for: (un)realised results and impairments on investments\u2019.
Reference is made to Note 34 Hedge accounting.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Change in fair value of underlying items | 2,361 | 4,862 |
Interest accreted | 1,771 | 1,892 |
Changes in value of options and guarantees for which the risk mitigation solution is used | -2 | -3 |
Finance result | 4,130 | 6,751 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest expenses on derivatives | 528 | 625 |
Other interest expenses | 672 | 684 |
Finance result other | 1,200 | 1,309 |
In 2025, total interest income and total interest expenses for items not valued at fair value through profit or loss were EUR 3,690 million (2024: EUR 3,798 million) and EUR 672 million (2024: EUR 684 million) respectively.
Interest income and expenses are included in the following profit and loss account lines.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest income | 4,254 | 4,498 |
Interest expenses on derivatives | -528 | -625 |
Other interest expenses | -672 | -684 |
Total interest income and expenses | 3,054 | 3,189 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Incurred claims and benefits | 5,550 | 5,110 |
Incurred attributable expenses | 1,322 | 1,298 |
Amortisation of acquisition costs | 432 | 415 |
Changes in incurred claims and benefits previous years | 4 | -17 |
(Reversal of) losses on onerous contracts | 37 | -45 |
Insurance expenses General Model and Variable Fee Approach | 7,345 | 6,761 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Losses on onerous contracts initially recognised in the year | 43 | 51 |
Changes in estimates not adjusting the contractual service margin | 33 | -78 |
Release of risk adjustment attributed to the loss component | \u00a0 | -1 |
Expected claims and benefits attributed to the loss component | -21 | -4 |
Expected attributable insurance expenses attributed to the loss component | -18 | -13 |
(Reversal of) losses on onerous contracts General Model and Variable Fee Approach | 37 | -45 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Incurred claims and benefits | 1,575 | 1,502 |
Incurred attributable expenses | 944 | 922 |
Amortisation of acquisition costs | 4 | 5 |
Changes in incurred claims and benefits previous years | 38 | 46 |
(Reversal of) losses on onerous contracts | 2 | \u00a0 |
Other insurance expenses | 13 | 15 |
Insurance expenses Premium Allocation Approach | 2,576 | 2,490 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Losses on onerous contracts initially recognised in the year | 3 | 3 |
Changes in estimates regarding onerous contracts | 1 | 1 |
Reversal of the loss component | -2 | -4 |
(Reversal of) losses on onerous contracts Premium Allocation Approach | 2 | 0 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Incurred claims and benefits | 5,550 | 5,110 |
Incurred attributable expenses | 1,322 | 1,298 |
Amortisation of acquisition costs | 432 | 415 |
Changes in incurred claims and benefits previous years | 4 | -17 |
(Reversal of) losses on onerous contracts | 37 | -45 |
Insurance expenses General Model and Variable Fee Approach | 7,345 | 6,761 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Losses on onerous contracts initially recognised in the year | 43 | 51 |
Changes in estimates not adjusting the contractual service margin | 33 | -78 |
Release of risk adjustment attributed to the loss component | \u00a0 | -1 |
Expected claims and benefits attributed to the loss component | -21 | -4 |
Expected attributable insurance expenses attributed to the loss component | -18 | -13 |
(Reversal of) losses on onerous contracts General Model and Variable Fee Approach | 37 | -45 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Incurred claims and benefits | 1,575 | 1,502 |
Incurred attributable expenses | 944 | 922 |
Amortisation of acquisition costs | 4 | 5 |
Changes in incurred claims and benefits previous years | 38 | 46 |
(Reversal of) losses on onerous contracts | 2 | \u00a0 |
Other insurance expenses | 13 | 15 |
Insurance expenses Premium Allocation Approach | 2,576 | 2,490 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Losses on onerous contracts initially recognised in the year | 3 | 3 |
Changes in estimates regarding onerous contracts | 1 | 1 |
Reversal of the loss component | -2 | -4 |
(Reversal of) losses on onerous contracts Premium Allocation Approach | 2 | 0 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Staff expenses | 1,744 | 1,698 |
Other operating expenses | 2,682 | 2,531 |
Of which attributed to: | \u00a0 | \u00a0 |
\u2013 incurred acquisition costs | -681 | -649 |
\u2013 incurred insurance expenses | -2,298 | -2,255 |
Non-attributable operating expenses | 1,447 | 1,325 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Salaries | 1,130 | 1,099 |
Pension costs | 159 | 148 |
Social security costs | 176 | 168 |
Share-based compensation arrangements | 6 | 5 |
External staff costs | 191 | 189 |
Education | 20 | 20 |
Other staff costs | 62 | 69 |
Staff expenses | 1,744 | 1,698 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Current service cost | 5 | 6 |
Past service cost | 6 | \u00a0 |
Net interest cost | -2 | -1 |
Defined benefit plans | 9 | 5 |
Defined contribution plans | 150 | 143 |
Pension costs | 159 | 148 |
Certain group companies sponsor defined contribution pension plans. The assets of all NN\u2019s defined contribution plans are held in independently administered funds. Contributions are generally determined as a percentage of pay. These plans do not give rise to balance sheet provisions, other than relating to short-term timing differences included in \u2018Other assets\u2019 or \u2018Other liabilities\u2019.
Reference is made to Note 30 Principal subsidiaries and geographical information for information on the average number of employees.
Reference is made to Note 45 Key management personnel compensation.
NN has granted shares to a number of senior executives (members of the Management Board, general managers and other officers nominated by the Management Board). The purpose of the share schemes is to attract, retain and motivate senior executives and staff.
Share awards comprise upfront shares and deferred shares. The entitlement to the deferred shares is granted conditionally. If the participant remains in employment for an uninterrupted period between the grant date and the vesting date, the entitlement becomes unconditional. A retention period applies from the moment of vesting these awards (five years for Management Board and one year for Identified Staff).
| \u00a0 | Share awards (in number) | Weighted average grant date fair value (in euro) | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Share awards outstanding \u2013 opening balance | 185,963 | 177,349 | 40.08 | 38.64 |
Granted | 123,994 | 144,126 | 49.94 | 41.96 |
Vested | -121,991 | -131,110 | 42.93 | 40.25 |
Forfeited | -10,106 | -4,402 | 41.76 | 38.75 |
Share awards outstanding \u2013 closing balance | 177,860 | 185,963 | 44.91 | 40.08 |
In 2025, 15,624 (2024: 18,306) share awards on NN Group N.V. shares were granted to the members of the Executive and Management Board.
In 2025, 108,370 (2024: 125,820) share awards on NN Group N.V. shares were granted to senior management and other employees.
As at 31 December 2025, the share awards on NN Group N.V. shares consist of 175,043 (2024: 179,865) share awards relating to equity-settled share-based payment arrangements and 2,817 (2024: 6,098) share awards relating to cash-settled share-based payment arrangements.
The fair value of share awards granted is allocated over the vesting period of the share awards as an expense under staff expenses.
As at 31 December 2025, total unrecognised compensation costs related to share awards amount to EUR 3 million (2024: EUR 3 million).
These costs are expected to be recognised over a weighted average period of 1.4 years (2024: 1.4 years).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Depreciation of property and equipment | 68 | 82 |
Amortisation of software | 33 | 36 |
Computer costs | 344 | 310 |
Office expenses | 60 | 69 |
Travel and accommodation expenses | 18 | 17 |
Advertising and public relations | 88 | 85 |
External advisory fees | 232 | 211 |
Claims handling expenses | 217 | 234 |
Additions to (releases of) other provisions | 37 | 7 |
Commissions, fees and other | 1,585 | 1,480 |
Other operating expenses | 2,682 | 2,531 |
Interest income and expenses are recognised in the profit and loss account using the effective interest method. When calculating the effective interest rate, NN estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. Once a financial asset, or a group of similar financial assets is in default 'Stage 3', interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Interest income and expenses from derivatives are classified as interest income and interest expenses in the profit and loss, except for interest income and expenses on derivatives for which no hedge accounting is applied.
The latter is classified in \u2018Result on derivatives and hedging\u2019, together with the changes in the (clean) fair value of these derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i11897": { "value": "Interest income and expenses are recognised in the profit and loss account using the effective interest method. When calculating the effective interest rate, NN estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. Once a financial asset, or a group of similar financial assets is in default 'Stage 3', interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Interest income and expenses from derivatives are classified as interest income and interest expenses in the profit and loss, except for interest income and expenses on derivatives for which no hedge accounting is applied.
The latter is classified in \u2018Result on derivatives and hedging\u2019, together with the changes in the (clean) fair value of these derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i11898": { "value": "Interest income and expenses are recognised in the profit and loss account using the effective interest method. When calculating the effective interest rate, NN estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. Once a financial asset, or a group of similar financial assets is in default 'Stage 3', interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Interest income and expenses from derivatives are classified as interest income and interest expenses in the profit and loss, except for interest income and expenses on derivatives for which no hedge accounting is applied.
The latter is classified in \u2018Result on derivatives and hedging\u2019, together with the changes in the (clean) fair value of these derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i11899": { "value": "Interest income and expenses are recognised in the profit and loss account using the effective interest method. When calculating the effective interest rate, NN estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. Once a financial asset, or a group of similar financial assets is in default 'Stage 3', interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Interest income and expenses from derivatives are classified as interest income and interest expenses in the profit and loss, except for interest income and expenses on derivatives for which no hedge accounting is applied.
The latter is classified in \u2018Result on derivatives and hedging\u2019, together with the changes in the (clean) fair value of these derivatives.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest income from investments in debt securities | 1,813 | 1,764 |
Interest income from mortgage loans | 1,405 | 1,378 |
Interest income from other loans | 292 | 367 |
Interest income on (hedging) derivatives | 564 | 700 |
Other interest income | 180 | 289 |
Interest income | 4,254 | 4,498 |
Income from investments in real estate | 103 | 109 |
Dividend income on equity securities | 470 | 439 |
Other investment income | 6 | 5 |
Total other investment income | 579 | 553 |
Investment income | 4,833 | 5,051 |
Realised gains (losses) on Investments at cost and at fair value through Other Comprehensive Income | -311 | -1,038 |
Gains (losses) on investments at fair value through profit or loss | 2,309 | 5,087 |
Gains (losses) on investments in real estate | 16 | -13 |
Gains (losses) on Investments at cost, at fair value through OCI and at fair value through profit and loss | 2,014 | 4,036 |
Share of result of investments in associates and joint ventures | 520 | 579 |
Impairments and reversal of impairments on investments | -26 | 13 |
Result on derivatives and hedging | -56 | -849 |
Foreign currency exchange result | -852 | 673 |
Other investment result | -414 | 416 |
Investment result | 6,433 | 9,503 |
Gains (losses) on investments at fair value through profit or loss include gains (losses) related to investments held for risk of policyholders for EUR 2,390 million (2024: EUR 4,841 million). These gains (losses) are mostly offset by changes in fair value of underlying items as presented in \u2018Finance result on (re)insurance contracts\u2019.
Dividend income on equity securities includes EUR 60 million of dividend relating to equity securities at fair value through Other Comprehensive Income held at 31 December 2025 (31 December 2024: EUR 59 million) and EUR 8 million of dividend relating to equity securities at fair value through Other Comprehensive Income derecognised during 2025 (2024: EUR 16 million).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Change in fair value of derivatives relating to: | \u00a0 | \u00a0 |
\u2013 fair value hedges | 272 | -115 |
\u2013 cash flow hedges (ineffective portion) | -2 | 1 |
\u2013 other derivatives | -44 | -817 |
Net result on derivatives | 226 | -931 |
Change in fair value of assets and liabilities (hedged items) | -282 | 82 |
Result on derivatives and hedging | -56 | -849 |
Included in \u2018Results on derivatives and hedging\u2019 are the fair value movements on derivatives and other assets accounted for at fair value through profit or loss used to economically hedge exposures, but for which no hedge accounting is applied. These financial assets hedge exposures in insurance contracts. The fair value movements on the financial assets are influenced by changes in the market conditions, such as share prices, interest rates and currency exchange rates. The change in fair value of the financial assets is largely offset by changes in insurance contracts, which are included in \u2018finance result\u2019 in the profit or loss account (when using the risk mitigation option) or in Other Comprehensive Income (for contracts accounted for under the General Model when using the OCI option). Reference is made to Note 12 Insurance contracts, Note 11 Equity and Note 24 Finance result.
Valuation results on derivatives are reflected in the Consolidated statement of cash flows in the section \u2018Result before tax\u2019, in the line item \u2018Adjusted for: (un)realised results and impairments on investments\u2019.
Reference is made to Note 34 Hedge accounting.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Change in fair value of underlying items | 2,361 | 4,862 |
Interest accreted | 1,771 | 1,892 |
Changes in value of options and guarantees for which the risk mitigation solution is used | -2 | -3 |
Finance result | 4,130 | 6,751 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest expenses on derivatives | 528 | 625 |
Other interest expenses | 672 | 684 |
Finance result other | 1,200 | 1,309 |
In 2025, total interest income and total interest expenses for items not valued at fair value through profit or loss were EUR 3,690 million (2024: EUR 3,798 million) and EUR 672 million (2024: EUR 684 million) respectively.
Interest income and expenses are included in the following profit and loss account lines.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest income | 4,254 | 4,498 |
Interest expenses on derivatives | -528 | -625 |
Other interest expenses | -672 | -684 |
Total interest income and expenses | 3,054 | 3,189 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Change in fair value of underlying items | 2,361 | 4,862 |
Interest accreted | 1,771 | 1,892 |
Changes in value of options and guarantees for which the risk mitigation solution is used | -2 | -3 |
Finance result | 4,130 | 6,751 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest expenses on derivatives | 528 | 625 |
Other interest expenses | 672 | 684 |
Finance result other | 1,200 | 1,309 |
In 2025, total interest income and total interest expenses for items not valued at fair value through profit or loss were EUR 3,690 million (2024: EUR 3,798 million) and EUR 672 million (2024: EUR 684 million) respectively.
Interest income and expenses are included in the following profit and loss account lines.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest income | 4,254 | 4,498 |
Interest expenses on derivatives | -528 | -625 |
Other interest expenses | -672 | -684 |
Total interest income and expenses | 3,054 | 3,189 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Change in fair value of underlying items | 2,361 | 4,862 |
Interest accreted | 1,771 | 1,892 |
Changes in value of options and guarantees for which the risk mitigation solution is used | -2 | -3 |
Finance result | 4,130 | 6,751 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest expenses on derivatives | 528 | 625 |
Other interest expenses | 672 | 684 |
Finance result other | 1,200 | 1,309 |
In 2025, total interest income and total interest expenses for items not valued at fair value through profit or loss were EUR 3,690 million (2024: EUR 3,798 million) and EUR 672 million (2024: EUR 684 million) respectively.
Interest income and expenses are included in the following profit and loss account lines.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest income | 4,254 | 4,498 |
Interest expenses on derivatives | -528 | -625 |
Other interest expenses | -672 | -684 |
Total interest income and expenses | 3,054 | 3,189 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Change in fair value of underlying items | 2,361 | 4,862 |
Interest accreted | 1,771 | 1,892 |
Changes in value of options and guarantees for which the risk mitigation solution is used | -2 | -3 |
Finance result | 4,130 | 6,751 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest expenses on derivatives | 528 | 625 |
Other interest expenses | 672 | 684 |
Finance result other | 1,200 | 1,309 |
In 2025, total interest income and total interest expenses for items not valued at fair value through profit or loss were EUR 3,690 million (2024: EUR 3,798 million) and EUR 672 million (2024: EUR 684 million) respectively.
Interest income and expenses are included in the following profit and loss account lines.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest income | 4,254 | 4,498 |
Interest expenses on derivatives | -528 | -625 |
Other interest expenses | -672 | -684 |
Total interest income and expenses | 3,054 | 3,189 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Change in fair value of underlying items | 2,361 | 4,862 |
Interest accreted | 1,771 | 1,892 |
Changes in value of options and guarantees for which the risk mitigation solution is used | -2 | -3 |
Finance result | 4,130 | 6,751 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest expenses on derivatives | 528 | 625 |
Other interest expenses | 672 | 684 |
Finance result other | 1,200 | 1,309 |
In 2025, total interest income and total interest expenses for items not valued at fair value through profit or loss were EUR 3,690 million (2024: EUR 3,798 million) and EUR 672 million (2024: EUR 684 million) respectively.
Interest income and expenses are included in the following profit and loss account lines.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest income | 4,254 | 4,498 |
Interest expenses on derivatives | -528 | -625 |
Other interest expenses | -672 | -684 |
Total interest income and expenses | 3,054 | 3,189 |
Fees and commissions are generally recognised as the service is provided.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Asset management fees | 300 | 283 |
Insurance brokerage and advisory fees | 239 | 223 |
Other | 96 | 103 |
Fee and commission income | 635 | 609 |
Asset management fees | 121 | 111 |
Commission expenses and other | 26 | 58 |
Fee and commission expenses | 147 | 169 |
Fee and commission result | 488 | 440 |
Fees and commissions are generally recognised as the service is provided.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Asset management fees | 300 | 283 |
Insurance brokerage and advisory fees | 239 | 223 |
Other | 96 | 103 |
Fee and commission income | 635 | 609 |
Asset management fees | 121 | 111 |
Commission expenses and other | 26 | 58 |
Fee and commission expenses | 147 | 169 |
Fee and commission result | 488 | 440 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Staff expenses | 1,744 | 1,698 |
Other operating expenses | 2,682 | 2,531 |
Of which attributed to: | \u00a0 | \u00a0 |
\u2013 incurred acquisition costs | -681 | -649 |
\u2013 incurred insurance expenses | -2,298 | -2,255 |
Non-attributable operating expenses | 1,447 | 1,325 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Salaries | 1,130 | 1,099 |
Pension costs | 159 | 148 |
Social security costs | 176 | 168 |
Share-based compensation arrangements | 6 | 5 |
External staff costs | 191 | 189 |
Education | 20 | 20 |
Other staff costs | 62 | 69 |
Staff expenses | 1,744 | 1,698 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Current service cost | 5 | 6 |
Past service cost | 6 | \u00a0 |
Net interest cost | -2 | -1 |
Defined benefit plans | 9 | 5 |
Defined contribution plans | 150 | 143 |
Pension costs | 159 | 148 |
Certain group companies sponsor defined contribution pension plans. The assets of all NN\u2019s defined contribution plans are held in independently administered funds. Contributions are generally determined as a percentage of pay. These plans do not give rise to balance sheet provisions, other than relating to short-term timing differences included in \u2018Other assets\u2019 or \u2018Other liabilities\u2019.
Reference is made to Note 30 Principal subsidiaries and geographical information for information on the average number of employees.
Reference is made to Note 45 Key management personnel compensation.
NN has granted shares to a number of senior executives (members of the Management Board, general managers and other officers nominated by the Management Board). The purpose of the share schemes is to attract, retain and motivate senior executives and staff.
Share awards comprise upfront shares and deferred shares. The entitlement to the deferred shares is granted conditionally. If the participant remains in employment for an uninterrupted period between the grant date and the vesting date, the entitlement becomes unconditional. A retention period applies from the moment of vesting these awards (five years for Management Board and one year for Identified Staff).
| \u00a0 | Share awards (in number) | Weighted average grant date fair value (in euro) | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Share awards outstanding \u2013 opening balance | 185,963 | 177,349 | 40.08 | 38.64 |
Granted | 123,994 | 144,126 | 49.94 | 41.96 |
Vested | -121,991 | -131,110 | 42.93 | 40.25 |
Forfeited | -10,106 | -4,402 | 41.76 | 38.75 |
Share awards outstanding \u2013 closing balance | 177,860 | 185,963 | 44.91 | 40.08 |
In 2025, 15,624 (2024: 18,306) share awards on NN Group N.V. shares were granted to the members of the Executive and Management Board.
In 2025, 108,370 (2024: 125,820) share awards on NN Group N.V. shares were granted to senior management and other employees.
As at 31 December 2025, the share awards on NN Group N.V. shares consist of 175,043 (2024: 179,865) share awards relating to equity-settled share-based payment arrangements and 2,817 (2024: 6,098) share awards relating to cash-settled share-based payment arrangements.
The fair value of share awards granted is allocated over the vesting period of the share awards as an expense under staff expenses.
As at 31 December 2025, total unrecognised compensation costs related to share awards amount to EUR 3 million (2024: EUR 3 million).
These costs are expected to be recognised over a weighted average period of 1.4 years (2024: 1.4 years).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Depreciation of property and equipment | 68 | 82 |
Amortisation of software | 33 | 36 |
Computer costs | 344 | 310 |
Office expenses | 60 | 69 |
Travel and accommodation expenses | 18 | 17 |
Advertising and public relations | 88 | 85 |
External advisory fees | 232 | 211 |
Claims handling expenses | 217 | 234 |
Additions to (releases of) other provisions | 37 | 7 |
Commissions, fees and other | 1,585 | 1,480 |
Other operating expenses | 2,682 | 2,531 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Staff expenses | 1,744 | 1,698 |
Other operating expenses | 2,682 | 2,531 |
Of which attributed to: | \u00a0 | \u00a0 |
\u2013 incurred acquisition costs | -681 | -649 |
\u2013 incurred insurance expenses | -2,298 | -2,255 |
Non-attributable operating expenses | 1,447 | 1,325 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Salaries | 1,130 | 1,099 |
Pension costs | 159 | 148 |
Social security costs | 176 | 168 |
Share-based compensation arrangements | 6 | 5 |
External staff costs | 191 | 189 |
Education | 20 | 20 |
Other staff costs | 62 | 69 |
Staff expenses | 1,744 | 1,698 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Current service cost | 5 | 6 |
Past service cost | 6 | \u00a0 |
Net interest cost | -2 | -1 |
Defined benefit plans | 9 | 5 |
Defined contribution plans | 150 | 143 |
Pension costs | 159 | 148 |
Certain group companies sponsor defined contribution pension plans. The assets of all NN\u2019s defined contribution plans are held in independently administered funds. Contributions are generally determined as a percentage of pay. These plans do not give rise to balance sheet provisions, other than relating to short-term timing differences included in \u2018Other assets\u2019 or \u2018Other liabilities\u2019.
Reference is made to Note 30 Principal subsidiaries and geographical information for information on the average number of employees.
Reference is made to Note 45 Key management personnel compensation.
NN has granted shares to a number of senior executives (members of the Management Board, general managers and other officers nominated by the Management Board). The purpose of the share schemes is to attract, retain and motivate senior executives and staff.
Share awards comprise upfront shares and deferred shares. The entitlement to the deferred shares is granted conditionally. If the participant remains in employment for an uninterrupted period between the grant date and the vesting date, the entitlement becomes unconditional. A retention period applies from the moment of vesting these awards (five years for Management Board and one year for Identified Staff).
| \u00a0 | Share awards (in number) | Weighted average grant date fair value (in euro) | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Share awards outstanding \u2013 opening balance | 185,963 | 177,349 | 40.08 | 38.64 |
Granted | 123,994 | 144,126 | 49.94 | 41.96 |
Vested | -121,991 | -131,110 | 42.93 | 40.25 |
Forfeited | -10,106 | -4,402 | 41.76 | 38.75 |
Share awards outstanding \u2013 closing balance | 177,860 | 185,963 | 44.91 | 40.08 |
In 2025, 15,624 (2024: 18,306) share awards on NN Group N.V. shares were granted to the members of the Executive and Management Board.
In 2025, 108,370 (2024: 125,820) share awards on NN Group N.V. shares were granted to senior management and other employees.
As at 31 December 2025, the share awards on NN Group N.V. shares consist of 175,043 (2024: 179,865) share awards relating to equity-settled share-based payment arrangements and 2,817 (2024: 6,098) share awards relating to cash-settled share-based payment arrangements.
The fair value of share awards granted is allocated over the vesting period of the share awards as an expense under staff expenses.
As at 31 December 2025, total unrecognised compensation costs related to share awards amount to EUR 3 million (2024: EUR 3 million).
These costs are expected to be recognised over a weighted average period of 1.4 years (2024: 1.4 years).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Depreciation of property and equipment | 68 | 82 |
Amortisation of software | 33 | 36 |
Computer costs | 344 | 310 |
Office expenses | 60 | 69 |
Travel and accommodation expenses | 18 | 17 |
Advertising and public relations | 88 | 85 |
External advisory fees | 232 | 211 |
Claims handling expenses | 217 | 234 |
Additions to (releases of) other provisions | 37 | 7 |
Commissions, fees and other | 1,585 | 1,480 |
Other operating expenses | 2,682 | 2,531 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Staff expenses | 1,744 | 1,698 |
Other operating expenses | 2,682 | 2,531 |
Of which attributed to: | \u00a0 | \u00a0 |
\u2013 incurred acquisition costs | -681 | -649 |
\u2013 incurred insurance expenses | -2,298 | -2,255 |
Non-attributable operating expenses | 1,447 | 1,325 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Salaries | 1,130 | 1,099 |
Pension costs | 159 | 148 |
Social security costs | 176 | 168 |
Share-based compensation arrangements | 6 | 5 |
External staff costs | 191 | 189 |
Education | 20 | 20 |
Other staff costs | 62 | 69 |
Staff expenses | 1,744 | 1,698 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Current service cost | 5 | 6 |
Past service cost | 6 | \u00a0 |
Net interest cost | -2 | -1 |
Defined benefit plans | 9 | 5 |
Defined contribution plans | 150 | 143 |
Pension costs | 159 | 148 |
Certain group companies sponsor defined contribution pension plans. The assets of all NN\u2019s defined contribution plans are held in independently administered funds. Contributions are generally determined as a percentage of pay. These plans do not give rise to balance sheet provisions, other than relating to short-term timing differences included in \u2018Other assets\u2019 or \u2018Other liabilities\u2019.
Reference is made to Note 30 Principal subsidiaries and geographical information for information on the average number of employees.
Reference is made to Note 45 Key management personnel compensation.
NN has granted shares to a number of senior executives (members of the Management Board, general managers and other officers nominated by the Management Board). The purpose of the share schemes is to attract, retain and motivate senior executives and staff.
Share awards comprise upfront shares and deferred shares. The entitlement to the deferred shares is granted conditionally. If the participant remains in employment for an uninterrupted period between the grant date and the vesting date, the entitlement becomes unconditional. A retention period applies from the moment of vesting these awards (five years for Management Board and one year for Identified Staff).
| \u00a0 | Share awards (in number) | Weighted average grant date fair value (in euro) | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Share awards outstanding \u2013 opening balance | 185,963 | 177,349 | 40.08 | 38.64 |
Granted | 123,994 | 144,126 | 49.94 | 41.96 |
Vested | -121,991 | -131,110 | 42.93 | 40.25 |
Forfeited | -10,106 | -4,402 | 41.76 | 38.75 |
Share awards outstanding \u2013 closing balance | 177,860 | 185,963 | 44.91 | 40.08 |
In 2025, 15,624 (2024: 18,306) share awards on NN Group N.V. shares were granted to the members of the Executive and Management Board.
In 2025, 108,370 (2024: 125,820) share awards on NN Group N.V. shares were granted to senior management and other employees.
As at 31 December 2025, the share awards on NN Group N.V. shares consist of 175,043 (2024: 179,865) share awards relating to equity-settled share-based payment arrangements and 2,817 (2024: 6,098) share awards relating to cash-settled share-based payment arrangements.
The fair value of share awards granted is allocated over the vesting period of the share awards as an expense under staff expenses.
As at 31 December 2025, total unrecognised compensation costs related to share awards amount to EUR 3 million (2024: EUR 3 million).
These costs are expected to be recognised over a weighted average period of 1.4 years (2024: 1.4 years).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Depreciation of property and equipment | 68 | 82 |
Amortisation of software | 33 | 36 |
Computer costs | 344 | 310 |
Office expenses | 60 | 69 |
Travel and accommodation expenses | 18 | 17 |
Advertising and public relations | 88 | 85 |
External advisory fees | 232 | 211 |
Claims handling expenses | 217 | 234 |
Additions to (releases of) other provisions | 37 | 7 |
Commissions, fees and other | 1,585 | 1,480 |
Other operating expenses | 2,682 | 2,531 |
Certain group companies sponsor defined contribution pension plans. The assets of all NN\u2019s defined contribution plans are held in independently administered funds. Contributions are generally determined as a percentage of pay. These plans do not give rise to balance sheet provisions, other than relating to short-term timing differences included in \u2018Other assets\u2019 or \u2018Other liabilities\u2019.
Reference is made to Note 30 Principal subsidiaries and geographical information for information on the average number of employees.
Reference is made to Note 45 Key management personnel compensation.
NN has granted shares to a number of senior executives (members of the Management Board, general managers and other officers nominated by the Management Board). The purpose of the share schemes is to attract, retain and motivate senior executives and staff.
Share awards comprise upfront shares and deferred shares. The entitlement to the deferred shares is granted conditionally. If the participant remains in employment for an uninterrupted period between the grant date and the vesting date, the entitlement becomes unconditional. A retention period applies from the moment of vesting these awards (five years for Management Board and one year for Identified Staff).
| \u00a0 | Share awards (in number) | Weighted average grant date fair value (in euro) | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Share awards outstanding \u2013 opening balance | 185,963 | 177,349 | 40.08 | 38.64 |
Granted | 123,994 | 144,126 | 49.94 | 41.96 |
Vested | -121,991 | -131,110 | 42.93 | 40.25 |
Forfeited | -10,106 | -4,402 | 41.76 | 38.75 |
Share awards outstanding \u2013 closing balance | 177,860 | 185,963 | 44.91 | 40.08 |
In 2025, 15,624 (2024: 18,306) share awards on NN Group N.V. shares were granted to the members of the Executive and Management Board.
In 2025, 108,370 (2024: 125,820) share awards on NN Group N.V. shares were granted to senior management and other employees.
As at 31 December 2025, the share awards on NN Group N.V. shares consist of 175,043 (2024: 179,865) share awards relating to equity-settled share-based payment arrangements and 2,817 (2024: 6,098) share awards relating to cash-settled share-based payment arrangements.
The fair value of share awards granted is allocated over the vesting period of the share awards as an expense under staff expenses.
As at 31 December 2025, total unrecognised compensation costs related to share awards amount to EUR 3 million (2024: EUR 3 million).
These costs are expected to be recognised over a weighted average period of 1.4 years (2024: 1.4 years).
| \u00a0 | 2025 | 2024 |
|---|---|---|
Depreciation of property and equipment | 68 | 82 |
Amortisation of software | 33 | 36 |
Computer costs | 344 | 310 |
Office expenses | 60 | 69 |
Travel and accommodation expenses | 18 | 17 |
Advertising and public relations | 88 | 85 |
External advisory fees | 232 | 211 |
Claims handling expenses | 217 | 234 |
Additions to (releases of) other provisions | 37 | 7 |
Commissions, fees and other | 1,585 | 1,480 |
Other operating expenses | 2,682 | 2,531 |
Earnings per ordinary share shows earnings per share amounts for profit or loss attributable to shareholders of the parent. Earnings per ordinary share is calculated on the basis of the weighted average number of ordinary shares outstanding. In calculating the weighted average number of ordinary shares outstanding, own shares held by group companies are deducted from the total number of ordinary shares in issue.
Changes in the number of ordinary shares outstanding without a corresponding change in resources are taken into account, including if these changes occurred after the reporting date but before the annual accounts are authorised for issue.
| \u00a0 | Amounts (in millions of euro) | Weighted average number of ordinary shares (in millions) | Per ordinary share (in euro) | |||
|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Net result | 1,188 | 1,583 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Coupon on undated subordinated notes | -82 | -66 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Basic earnings per ordinary share | 1,106 | 1,517 | 265.0 | 271.7 | 4.17 | 5.58 |
Dilutive instruments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u2013 Share plans | \u00a0 | \u00a0 | 0.2 | 0.2 | \u00a0 | \u00a0 |
Dilutive instruments | 0 | \u00a0 | 0.2 | 0.2 | \u00a0 | \u00a0 |
Diluted earnings per ordinary share | 1,106 | 1,517 | 265.2 | 271.9 | 4.17 | 5.58 |
Diluted earnings per share is calculated as if the share plans had been exercised at the beginning of the period and assuming that the cash received from exercised share plans was used to buy own shares against the average market price during the period. The net increase in the number of shares resulting from exercising share plans is added to the average number of shares used for the calculation of diluted earnings per share.
Earnings per ordinary share shows earnings per share amounts for profit or loss attributable to shareholders of the parent. Earnings per ordinary share is calculated on the basis of the weighted average number of ordinary shares outstanding. In calculating the weighted average number of ordinary shares outstanding, own shares held by group companies are deducted from the total number of ordinary shares in issue.
Changes in the number of ordinary shares outstanding without a corresponding change in resources are taken into account, including if these changes occurred after the reporting date but before the annual accounts are authorised for issue.
| \u00a0 | Amounts (in millions of euro) | Weighted average number of ordinary shares (in millions) | Per ordinary share (in euro) | |||
|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Net result | 1,188 | 1,583 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Coupon on undated subordinated notes | -82 | -66 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Basic earnings per ordinary share | 1,106 | 1,517 | 265.0 | 271.7 | 4.17 | 5.58 |
Dilutive instruments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u2013 Share plans | \u00a0 | \u00a0 | 0.2 | 0.2 | \u00a0 | \u00a0 |
Dilutive instruments | 0 | \u00a0 | 0.2 | 0.2 | \u00a0 | \u00a0 |
Diluted earnings per ordinary share | 1,106 | 1,517 | 265.2 | 271.9 | 4.17 | 5.58 |
Diluted earnings per share is calculated as if the share plans had been exercised at the beginning of the period and assuming that the cash received from exercised share plans was used to buy own shares against the average market price during the period. The net increase in the number of shares resulting from exercising share plans is added to the average number of shares used for the calculation of diluted earnings per share.
A segment is a distinguishable component of NN, engaged in providing products or services, subject to risks and returns that are different from those of other segments. A geographical area is a distinguishable component of NN engaged in providing products or services within a particular economic environment that is subject to risks and returns that are different from those of segments operating in other economic environments. The geographical analysis is based on the location of the business unit from which the transactions are originated.
The reporting segments for NN, based on the internal reporting structure, are as follows:
Netherlands Life (Group life and individual life insurance products in the Netherlands).
Netherlands Non-life (Non-life insurance in the Netherlands including disability and accident, fire, motor and transport insurance).
Insurance Europe (Life insurance, pension products and to a small extent non-life insurance and retirement services in Central and Rest of Europe).
Japan Life (Life insurance primarily Corporate Owned Life Insurance (COLI) business).
Banking.
Other (Operating segments that have been aggregated due to their respective size; including Japan Closed Block VA (Closed block single premium variable annuity individual life insurance portfolio in Japan, including the internally reinsured minimum guarantee risk, which has been closed to new business and which is being managed in run-off), reinsurance and items related to capital management and the head office).
The Executive Board and the Management Board set the performance targets and approve and monitor the budgets prepared by the reporting segments. The segments formulate strategic, commercial and financial policies in conformity with the strategy and performance targets set by the Executive Board and the Management Board.
The accounting policies of the segments are the same as those described in the relevant notes. Transfer prices for inter-segment transactions are set at arm\u2019s length. Corporate expenses are allocated to segments based on time spent by head office personnel, the relative number of staff, or on the basis of income and/or assets of the segment. Intercompany loans that qualify as equity securities under IFRS-EU are presented in the segment reporting as debt, related coupon payments are presented as income and expenses in the respective segments.
Operating result as presented below is an Alternative Performance Measure (non-GAAP financial measure) and is not a measure of financial performance under IFRS-EU. The net result on transactions between segments is eliminated in the net result of the relevant segment. Operating result is calculated as explained in the section \u2018Alternative Performance Measures\u2019.
2025 | Netherlands Life | Netherlands Non-life | Insurance Europe | Japan Life | Banking | Other | Total |
|---|---|---|---|---|---|---|---|
Profit margin | 236 | \u00a0 | 392 | 133 | \u00a0 | \u00a0 | 761 |
Technical result | 81 | \u00a0 | 56 | 31 | \u00a0 | \u00a0 | 168 |
Service expense result | -3 | \u00a0 | 8 | 8 | \u00a0 | \u00a0 | 13 |
(Re)insurance result | 314 | 0 | 456 | 171 | 0 | 0 | 942 |
Investment result | 1,547 | \u00a0 | 163 | 34 | \u00a0 | \u00a0 | 1,744 |
Other results - insurance businesses | -76 | \u00a0 | -101 | -35 | \u00a0 | \u00a0 | -211 |
Operating result insurance businesses | 1,785 | 0 | 519 | 170 | 0 | 0 | 2,474 |
Operating result non-insurance businesses | 1 | \u00a0 | 121 | \u00a0 | \u00a0 | \u00a0 | 122 |
Operating result non-life | \u00a0 | 393 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 393 |
Operating result banking | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 117 | \u00a0 | 117 |
Operating result other | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -105 | -105 |
Total operating result | 1,787 | 393 | 639 | 170 | 117 | -105 | 3,002 |
Non-operating items of which: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u2013 gains (losses) and impairments | -325 | -7 | -18 | -1 | \u00a0 | -1 | -351 |
\u2013 revaluations | -736 | 10 | 16 | -43 | \u00a0 | -5 | -757 |
\u2013 market and other impacts | 69 | -14 | -49 | -3 | 4 | -38 | -31 |
Special items | -61 | -36 | -38 | -1 | -8 | -53 | -195 |
Acquisition intangibles and goodwill | \u00a0 | \u00a0 | -2 | \u00a0 | \u00a0 | -26 | -28 |
Result on divestments | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -131 | -131 |
Result before tax | 734 | 347 | 549 | 123 | 113 | -359 | 1,509 |
Taxation | 115 | 69 | 118 | 28 | 29 | -47 | 312 |
Minority interests | \u00a0 | 9 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 9 |
Net result | 619 | 269 | 431 | 96 | 84 | -311 | 1,188 |
Special items in 2025 mainly reflecting costs related to the Future Ready strategic programme.
2024 | Netherlands Life | Netherlands Non-life | Insurance Europe | Japan Life | Banking | Other | Total |
|---|---|---|---|---|---|---|---|
Profit margin | 200 | \u00a0 | 343 | 142 | \u00a0 | \u00a0 | 685 |
Technical result | 38 | \u00a0 | 53 | 32 | \u00a0 | \u00a0 | 124 |
Service expense result | 9 | \u00a0 | -2 | 19 | \u00a0 | \u00a0 | 25 |
Other (re)insurance result | \u00a0 | \u00a0 | -1 | \u00a0 | \u00a0 | \u00a0 | -1 |
(Re)insurance result | 246 | 0 | 393 | 194 | 0 | 0 | 833 |
Investment result | 1,240 | \u00a0 | 148 | 40 | \u00a0 | \u00a0 | 1,428 |
Other results - insurance businesses | -112 | \u00a0 | -96 | -31 | \u00a0 | \u00a0 | -239 |
Operating result insurance businesses | 1,375 | 0 | 445 | 203 | 0 | 0 | 2,023 |
Operating result non-insurance businesses | -7 | \u00a0 | 113 | \u00a0 | \u00a0 | \u00a0 | 107 |
Operating result non-life | \u00a0 | 364 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 364 |
Operating result banking | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 189 | \u00a0 | 189 |
Operating result other | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -108 | -108 |
Total operating result | 1,368 | 364 | 559 | 203 | 189 | -108 | 2,574 |
Non-operating items of which: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u2013 gains (losses) and impairments | -1,045 | \u00a0 | -1 | 9 | 2 | \u00a0 | -1,036 |
\u2013 revaluations | 514 | 50 | 19 | -57 | \u00a0 | 9 | 535 |
\u2013 market and other impacts | -29 | -5 | 57 | -1 | -10 | -32 | -20 |
Special items | -25 | -12 | -27 | \u00a0 | -2 | -22 | -89 |
Acquisition intangibles and goodwill | \u00a0 | \u00a0 | -2 | \u00a0 | \u00a0 | -26 | -28 |
Result before tax | 783 | 397 | 604 | 153 | 179 | -180 | 1,936 |
Taxation | 83 | 99 | 134 | 40 | 46 | -67 | 334 |
Minority interests | \u00a0 | 20 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 19 |
Net result | 700 | 279 | 470 | 114 | 133 | -113 | 1,583 |
Special items in 2024 mainly related to non-operating project expenses.
2025 | Netherlands Life | Netherlands Non-life | Insurance Europe | Japan Life | Banking | Other and eliminations | Total |
|---|---|---|---|---|---|---|---|
Insurance income | 4,575 | 4,165 | 2,226 | 531 | \u00a0 | 20 | 11,517 |
Investment income | 3,171 | 223 | 1,622 | 125 | 1,176 | 116 | 6,433 |
2024 | Netherlands Life | Netherlands Non-life | Insurance Europe | Japan Life | Banking | Other and eliminations | Total |
|---|---|---|---|---|---|---|---|
Insurance income | 4,143 | 3,952 | 2,055 | 538 | \u00a0 | 18 | 10,706 |
Investment income | 6,245 | 256 | 1,440 | 132 | 1,290 | 140 | 9,503 |
2025 | Netherlands Life | Netherlands Non-life | Insurance Europe | Japan Life | Banking | Other and eliminations | Total |
|---|---|---|---|---|---|---|---|
Interest income | 2,330 | 164 | 398 | 139 | 1,185 | 38 | 4,254 |
Interest expenses | -326 | -31 | -19 | -11 | -838 | 25 | -1,200 |
2024 | Netherlands Life | Netherlands Non-life | Insurance Europe | Japan Life | Banking | Other and eliminations | Total |
|---|---|---|---|---|---|---|---|
Interest income | 2,425 | 164 | 408 | 153 | 1,321 | 27 | 4,498 |
Interest expenses | -391 | -39 | -21 | -11 | -897 | 50 | -1,309 |
| \u00a0 | Total assets | Total liabilities | Total assets | Total liabilities |
|---|---|---|---|---|
| \u00a0 | 2025 | 2025 | 2024 | 2024 |
Netherlands Life | 127,709 | 114,586 | 132,533 | 118,223 |
Netherlands Non-life | 8,908 | 7,183 | 8,781 | 7,235 |
Insurance Europe | 29,003 | 24,900 | 27,725 | 23,791 |
Japan Life | 10,670 | 9,619 | 13,778 | 12,645 |
Banking | 25,644 | 24,677 | 25,331 | 24,313 |
Other | 30,226 | 9,443 | 31,911 | 10,563 |
Total | 232,160 | 190,408 | 240,059 | 196,770 |
Eliminations | -27,248 | -6,651 | -29,684 | -8,047 |
Total assets and Total liabilities | 204,912 | 183,757 | 210,375 | 188,723 |
NN uses the following Alternative Performance Measures (APMs, also referred to as Non-GAAP measures) in its external financial reporting: Operating result, Operating Capital Generation and Administrative expenses. Because these measures are not determined in accordance with IFRS-EU, they may not be comparable to other similarly titled measures of performance of other companies.
Operating result (before tax) is used by NN to evaluate the financial performance of its segments. The objective of the Operating result is to provide a better understanding of the underlying business performance by eliminating non-operating volatility from the result before tax. The NN operating result is the sum of the operating results for each segment in the group. The result on transactions between segments is eliminated in the result of the relevant segment. Each segment\u2019s operating result is calculated by adjusting the reported result before tax for the following items:
Non-operating items:
Gains (losses) and impairments on financial assets: realised gains and impairments on financial assets that are classified as Investments at cost and Investments at fair value through Other Comprehensive Income. This relates mainly to debt securities and loans.
Revaluations: revaluations (changes in fair value) on Investments at fair value through profit or loss that are held in the general account. This relates mainly to private equity and real estate and loans, debt securities and equity securities accounted for at fair value through profit or loss and derivatives for which no hedge accounting is applied.
Market & other impacts: other items that are not representative of the underlying business performance of the segment. This may include (changes in) losses from onerous contracts due to assumption changes, impairments on intangible assets and specific one-off expenses.
Special items: items of income or expense before tax that are significant and arise from events or transactions that are clearly distinct from the ordinary business activities and therefore are not expected to recur frequently or regularly. This includes restructuring expenses, rebranding costs, results related to early redemption of debt and gains (losses) from employee pension plan amendments or curtailments.
Result on divestments: realised gains (losses) on the divestment of entities or businesses.
Acquisition intangibles and goodwill: amortisation and impairment on acquisition related intangible assets and impairment of goodwill.
The operating result for the life insurance business is analysed through a margin analysis, which includes the insurance and reinsurance result, investment result and other result. The insurance and reinsurance result represents the sum of the profit margin (including release of the CSM), the technical result (including release of the risk adjustment), service expense result, and other insurance and reinsurance result. The investment result reflects that difference between the investment income (on operating basis) and the finance result (on operating basis).
Operating result as presented above is an Alternative Performance Measure (non-GAAP financial measure) and is not a measure of financial performance under IFRS-EU.
Operating Capital Generation (OCG) is used by NN to evaluate the performance of both the consolidated Group and its segments. The objective of OCG is to provide a better understanding of the underlying regulatory capital generated during the reporting period by the business units. Given the importance of regulatory capital and the Solvency II ratio for NN and its subsidiaries, NN believes that the underlying capital generation measured through OCG is an important metric to evaluate the performance of NN and its segments. The NN OCG is the sum of the OCG for each segment in the group. OCG is analysed and disclosed both by segment and by underlying driver.
NN analyses the change in the excess of Solvency II Own Funds over the Solvency Capital Requirement (SCR) in the following components:
Operating Capital Generation.
Market variance.
Capital flows.
Other.
Operating Capital Generation is the movement in the Solvency II surplus (Own Funds before eligibility over SCR at 100%) in the period due to operating items, including the impact of new business, expected investment returns in excess of the unwind of liabilities, release of the risk margin, operating variances, non-life underwriting result, contribution of non-Solvency II entities and holding expenses and debt costs and the change in the SCR. It excludes economic variances, economic assumption changes and nonoperating expenses.
OCG is an alternative measure of performance and is not a measure of financial performance under IFRS-EU.
OCG is calculated independent from NN\u2019s (accounting policies under) IFRS-EU. The expected investment return is a key assumption in determining OCG.
Because OCG is not defined in IFRS-EU or Solvency II, it may not be comparable to other similarly titled measures of performance of other companies.
As OCG is not derived from a comparable metrics under IFRS-EU, it cannot be reconciled to an IFRS-EU equivalent.
NN monitors the level of expenses through the administrative expenses. Administrative expenses are calculated as the total of IFRS Staff and Other operating expenses excluding claims handling expenses, expenses related to investment and insurance commissions, fees as presented in insurance (acquisition) expenses, commissions and non-operating items.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Staff expenses | 1,744 | 1,698 |
Other operating expenses | 2,682 | 2,531 |
Total IFRS operating expenses (before attribution) | 4,426 | 4,229 |
Presented in insurance expenses and commissions | 1,346 | 1,292 |
Presented in insurance acquisition expenses | 581 | 537 |
Presented in non-operating items (including special items) | 211 | 117 |
Other adjustments | 48 | 53 |
Administrative expenses | 2,240 | 2,230 |
In addition, NN discloses a number of other metrics (that are not defined in IFRS and/or not defined in regulatory capital legislation). As these are not derived from comparable metrics under IFRS, these cannot be reconciled to an IFRS equivalent. These include the following:
Gross written premiums: premiums written in the reporting period. Premiums written plus or minus the change in premiums receivables equals premiums received as recorded in the cash flow sections on insurance contracts.
New sales (Annual Premium Equivalent, APE) represents annualised premium equivalents sold in the period, with single premiums calculated at 1/10th of the single premium amounts.
Combined ratio: the sum of the claims ratio (claims incurred, net of reinsurance, excluding unwind of interest accrual, divided by net earned premiums) and the expense ratio (sum of acquisition costs and administrative expenses, divided by net earned premiums).
Financial leverage ratio: the percentage of financial leverage in the total of financial leverage and equity.
Fixed cost coverage ratio: the ability of Earnings Before Interest and Tax (EBIT) to cover funding costs on financial leverage; calculated on a last 12-months basis.
Free cash flow: the change in the cash capital position at the holding company over the period, excluding acquisitions and capital transactions with shareholders and debtholders.
Cash capital position at the holding company: net current assets available at the holding company.
Net interest margin (NIM): interest result of the banking operations divided by the average total interest-bearing assets of the banking operations.
2025 | Life | Non-life | Total |
|---|---|---|---|
Gross written premiums | 8,787 | 4,469 | 13,256 |
Reinsurance ceded | -2,028 | -216 | -2,244 |
Net written premiums | 6,759 | 4,253 | 11,012 |
2024 | Life | Non-life | Total |
|---|---|---|---|
Gross written premiums | 9,776 | 4,202 | 13,978 |
Reinsurance ceded | -1,869 | -201 | -2,070 |
Net written premiums | 7,907 | 4,001 | 11,908 |
2025 | General Model and Variable Fee Approach | Premium Allocation Approach | Total |
|---|---|---|---|
Netherlands Life | 103,580 | \u00a0 | 103,580 |
Netherlands Non-life | 3,968 | 2,642 | 6,610 |
Insurance Europe | 20,087 | \u00a0 | 20,087 |
Japan Life | 9,081 | \u00a0 | 9,081 |
Other | 1,048 | 54 | 1,102 |
Insurance contracts | 137,764 | 2,696 | 140,460 |
2024 | General Model and Variable Fee Approach | Premium Allocation Approach | Total |
|---|---|---|---|
Netherlands Life | 108,114 | \u00a0 | 108,114 |
Netherlands Non-life | 3,907 | 2,520 | 6,427 |
Insurance Europe | 19,331 | \u00a0 | 19,331 |
Japan Life | 12,047 | \u00a0 | 12,047 |
Other | 1,171 | 42 | 1,213 |
Insurance contracts | 144,570 | 2,562 | 147,132 |
Netherlands Life, 2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 103,285 | 525 | 4,304 | 108,114 |
Net opening balance | 103,285 | 525 | 4,304 | 108,114 |
\u2013 insurance contracts initially recognised in the year | -130 | 12 | 137 | 19 |
\u2013 changes in estimates that adjust the contractual service margin | -940 | 128 | 812 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -37 | -10 | \u00a0 | -47 |
Changes that relate to future service | -1,107 | 130 | 949 | -28 |
\u2013 release to profit or loss | \u00a0 | -45 | -359 | -404 |
\u2013 experience adjustments not adjusting the contractual service margin | -36 | \u00a0 | \u00a0 | -36 |
Changes that relate to current service | -36 | -45 | -359 | -440 |
\u2013 changes in incurred claims and benefits previous years | 5 | \u00a0 | \u00a0 | 5 |
Changes that relate to past service | 5 | 0 | 0 | 5 |
\u2013 finance result through profit or loss | 2,284 | 18 | 38 | 2,340 |
\u2013 finance result recognised in OCI | -3,435 | -149 | \u00a0 | -3,584 |
Finance result on insurance contracts | -1,151 | -131 | 38 | -1,244 |
\u2013 premiums received | 3,389 | \u00a0 | \u00a0 | 3,389 |
\u2013 acquisition costs paid | -39 | \u00a0 | \u00a0 | -39 |
\u2013 claims, benefits and attributable expenses paid | -6,177 | \u00a0 | \u00a0 | -6,177 |
Cash flows | -2,827 | 0 | 0 | -2,827 |
Net closing balance | 98,169 | 479 | 4,932 | 103,580 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 98,169 | 479 | 4,932 | 103,580 |
Net closing balance | 98,169 | 479 | 4,932 | 103,580 |
Netherlands Life, 2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 99,719 | 966 | 3,627 | 104,312 |
Net opening balance | 99,719 | 966 | 3,627 | 104,312 |
\u2013 insurance contracts initially recognised in the year | -170 | 36 | 159 | 25 |
\u2013 changes in estimates that adjust the contractual service margin | -76 | -636 | 712 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 27 | -19 | \u00a0 | 8 |
Changes that relate to future service | -219 | -619 | 871 | 33 |
\u2013 release to profit or loss | \u00a0 | -37 | -272 | -309 |
\u2013 experience adjustments not adjusting the contractual service margin | 1 | \u00a0 | \u00a0 | 1 |
Changes that relate to current service | 1 | -37 | -272 | -308 |
\u2013 changes in incurred claims and benefits previous years | -6 | \u00a0 | \u00a0 | -6 |
Changes that relate to past service | -6 | 0 | 0 | -6 |
\u2013 finance result through profit or loss | 5,051 | 22 | 32 | 5,105 |
\u2013 finance result recognised in OCI | 658 | 193 | \u00a0 | 851 |
Finance result on insurance contracts | 5,709 | 215 | 32 | 5,956 |
\u2013 premiums received | 4,298 | \u00a0 | \u00a0 | 4,298 |
\u2013 acquisition costs paid | -39 | \u00a0 | \u00a0 | -39 |
\u2013 claims, benefits and attributable expenses paid | -6,178 | \u00a0 | \u00a0 | -6,178 |
Cash flows | -1,919 | 0 | 0 | -1,919 |
Other movements | \u00a0 | \u00a0 | 46 | 46 |
Net closing balance | 103,285 | 525 | 4,304 | 108,114 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 103,285 | 525 | 4,304 | 108,114 |
Net closing balance | 103,285 | 525 | 4,304 | 108,114 |
Netherlands Non-life, 2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 3,242 | 147 | 518 | 3,907 |
Net opening balance | 3,242 | 147 | 518 | 3,907 |
\u2013 insurance contracts initially recognised in the year | -126 | 13 | 114 | 1 |
\u2013 changes in estimates that adjust the contractual service margin | 67 | -58 | -9 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 46 | \u00a0 | \u00a0 | 46 |
Changes that relate to future service | -13 | -45 | 105 | 47 |
\u2013 release to profit or loss | \u00a0 | -19 | -67 | -86 |
\u2013 experience adjustments not adjusting the contractual service margin | 5 | \u00a0 | \u00a0 | 5 |
Changes that relate to current service | 5 | -19 | -67 | -81 |
\u2013 changes in incurred claims and benefits previous years | 1 | \u00a0 | \u00a0 | 1 |
Changes that relate to past service | 1 | 0 | 0 | 1 |
\u2013 finance result through profit or loss | 77 | 3 | 10 | 90 |
\u2013 finance result recognised in OCI | -86 | 8 | \u00a0 | -78 |
Finance result on insurance contracts | -9 | 11 | 10 | 12 |
\u2013 premiums received | 1,168 | \u00a0 | \u00a0 | 1,168 |
\u2013 acquisition costs paid | -13 | \u00a0 | \u00a0 | -13 |
\u2013 claims, benefits and attributable expenses paid | -1,073 | \u00a0 | \u00a0 | -1,073 |
Cash flows | 82 | 0 | 0 | 82 |
Net closing balance | 3,308 | 94 | 566 | 3,968 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 3,308 | 94 | 566 | 3,968 |
Net closing balance | 3,308 | 94 | 566 | 3,968 |
Netherlands Non-life, 2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 3,173 | 130 | 495 | 3,798 |
Net opening balance | 3,173 | 130 | 495 | 3,798 |
\u2013 insurance contracts initially recognised in the year | -94 | 12 | 83 | 1 |
\u2013 changes in estimates that adjust the contractual service margin | -19 | 25 | -6 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -2 | \u00a0 | \u00a0 | -2 |
Changes that relate to future service | -115 | 37 | 77 | -1 |
\u2013 release to profit or loss | \u00a0 | -24 | -62 | -86 |
\u2013 experience adjustments not adjusting the contractual service margin | 12 | \u00a0 | \u00a0 | 12 |
Changes that relate to current service | 12 | -24 | -62 | -74 |
\u2013 changes in incurred claims and benefits previous years | 2 | \u00a0 | \u00a0 | 2 |
Changes that relate to past service | 2 | 0 | 0 | 2 |
\u2013 finance result through profit or loss | 68 | 2 | 7 | 77 |
\u2013 finance result recognised in OCI | 63 | 1 | \u00a0 | 64 |
Finance result on insurance contracts | 131 | 3 | 7 | 141 |
\u2013 premiums received | 1,187 | \u00a0 | \u00a0 | 1,187 |
\u2013 acquisition costs paid | -14 | \u00a0 | \u00a0 | -14 |
\u2013 claims, benefits and attributable expenses paid | -1,132 | \u00a0 | \u00a0 | -1,132 |
Cash flows | 41 | 0 | 0 | 41 |
Other movements | -2 | 1 | 1 | 0 |
Net closing balance | 3,242 | 147 | 518 | 3,907 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 3,242 | 147 | 518 | 3,907 |
Net closing balance | 3,242 | 147 | 518 | 3,907 |
Insurance Europe, 2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | 1,158 | -89 | -660 | 409 |
\u2013 opening balance presented as liabilities | 17,993 | 268 | 1,479 | 19,740 |
Net opening balance | 16,835 | 357 | 2,139 | 19,331 |
\u2013 insurance contracts initially recognised in the year | -395 | 38 | 381 | 24 |
\u2013 changes in estimates that adjust the contractual service margin | -335 | 7 | 328 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 32 | 2 | \u00a0 | 34 |
Changes that relate to future service | -698 | 47 | 709 | 58 |
\u2013 release to profit or loss | \u00a0 | -48 | -426 | -474 |
\u2013 experience adjustments not adjusting the contractual service margin | -44 | \u00a0 | \u00a0 | -44 |
Changes that relate to current service | -44 | -48 | -426 | -518 |
\u2013 changes in incurred claims and benefits previous years | -1 | -1 | \u00a0 | -2 |
Changes that relate to past service | -1 | -1 | 0 | -2 |
\u2013 finance result through profit or loss | 1,374 | 6 | 39 | 1,419 |
\u2013 finance result recognised in OCI | -169 | 13 | \u00a0 | -156 |
Finance result on insurance contracts | 1,205 | 19 | 39 | 1,263 |
\u2013 premiums received | 3,927 | \u00a0 | \u00a0 | 3,927 |
\u2013 acquisition costs paid | -507 | \u00a0 | \u00a0 | -507 |
\u2013 claims, benefits and attributable expenses paid | -3,582 | \u00a0 | \u00a0 | -3,582 |
\u2013 changes in the composition of the group and other changes | -3 | \u00a0 | -5 | -8 |
Cash flows | -165 | 0 | -5 | -170 |
Foreign currency exchange differences | 100 | 2 | 23 | 125 |
Net closing balance | 17,232 | 376 | 2,479 | 20,087 |
\u2013 closing balance presented as assets | 1,326 | -96 | -756 | 474 |
\u2013 closing balance presented as liabilities | 18,558 | 280 | 1,723 | 20,561 |
Net closing balance | 17,232 | 376 | 2,479 | 20,087 |
Insurance Europe, 2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | 777 | -69 | -353 | 355 |
\u2013 opening balance presented as liabilities | 17,679 | 372 | 1,485 | 19,536 |
Net opening balance | 16,902 | 441 | 1,838 | 19,181 |
\u2013 insurance contracts initially recognised in the year | -319 | 38 | 305 | 24 |
\u2013 changes in estimates that adjust the contractual service margin | -308 | -33 | 341 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -31 | -58 | \u00a0 | -89 |
Changes that relate to future service | -658 | -53 | 646 | -65 |
\u2013 release to profit or loss | \u00a0 | -47 | -371 | -418 |
\u2013 experience adjustments not adjusting the contractual service margin | -25 | \u00a0 | \u00a0 | -25 |
Changes that relate to current service | -25 | -47 | -371 | -443 |
\u2013 changes in incurred claims and benefits previous years | -13 | \u00a0 | \u00a0 | -13 |
Changes that relate to past service | -13 | 0 | 0 | -13 |
\u2013 finance result through profit or loss | 1,188 | 13 | 37 | 1,238 |
\u2013 finance result recognised in OCI | 17 | 3 | \u00a0 | 20 |
Finance result on insurance contracts | 1,205 | 16 | 37 | 1,258 |
\u2013 premiums received | 3,714 | \u00a0 | \u00a0 | 3,714 |
\u2013 acquisition costs paid | -480 | \u00a0 | \u00a0 | -480 |
\u2013 claims, benefits and attributable expenses paid | -3,750 | \u00a0 | \u00a0 | -3,750 |
Cash flows | -516 | 0 | 0 | -516 |
Other movements | -3 | \u00a0 | \u00a0 | -3 |
Foreign currency exchange differences | -57 | \u00a0 | -11 | -68 |
Net closing balance | 16,835 | 357 | 2,139 | 19,331 |
\u2013 closing balance presented as assets | 1,158 | -89 | -660 | 409 |
\u2013 closing balance presented as liabilities | 17,993 | 268 | 1,479 | 19,740 |
Net closing balance | 16,835 | 357 | 2,139 | 19,331 |
Japan Life, 2025 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 10,806 | 259 | 982 | 12,047 |
Net opening balance | 10,806 | 259 | 982 | 12,047 |
\u2013 insurance contracts initially recognised in the year | -172 | 20 | 152 | 0 |
\u2013 changes in estimates that adjust the contractual service margin | -43 | 59 | -16 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | -3 | 1 | \u00a0 | -2 |
Changes that relate to future service | -218 | 80 | 136 | -2 |
\u2013 release to profit or loss | \u00a0 | -32 | -146 | -178 |
\u2013 experience adjustments not adjusting the contractual service margin | -8 | \u00a0 | \u00a0 | -8 |
Changes that relate to current service | -8 | -32 | -146 | -186 |
\u2013 finance result through profit or loss | 117 | 1 | 5 | 123 |
\u2013 finance result recognised in OCI | -843 | -19 | \u00a0 | -862 |
Finance result on insurance contracts | -726 | -18 | 5 | -739 |
\u2013 premiums received | 1,755 | \u00a0 | \u00a0 | 1,755 |
\u2013 acquisition costs paid | -114 | \u00a0 | \u00a0 | -114 |
\u2013 claims, benefits and attributable expenses paid | -2,411 | \u00a0 | \u00a0 | -2,411 |
Cash flows | -770 | 0 | 0 | -770 |
Other movements | 1 | \u00a0 | \u00a0 | 1 |
Foreign currency exchange differences | -1,129 | -33 | -108 | -1,270 |
Net closing balance | 7,956 | 256 | 869 | 9,081 |
\u2013 closing balance presented as assets | 51 | -4 | -42 | 5 |
\u2013 closing balance presented as liabilities | 8,007 | 252 | 827 | 9,086 |
Net closing balance | 7,956 | 256 | 869 | 9,081 |
Japan Life, 2024 | Estimates of the present value of future cash flows | Risk adjustment for non-financial risk | Contractual service margin | Total General Model and Variable Fee Approach |
|---|---|---|---|---|
\u2013 opening balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 opening balance presented as liabilities | 12,382 | 258 | 1,008 | 13,648 |
Net opening balance | 12,382 | 258 | 1,008 | 13,648 |
\u2013 insurance contracts initially recognised in the year | -127 | 15 | 112 | 0 |
\u2013 changes in estimates that adjust the contractual service margin | -68 | 15 | 53 | 0 |
\u2013 changes in estimates that do not adjust the contractual service margin | 2 | \u00a0 | \u00a0 | 2 |
Changes that relate to future service | -193 | 30 | 165 | 2 |
\u2013 release to profit or loss | \u00a0 | -27 | -152 | -179 |
\u2013 experience adjustments not adjusting the contractual service margin | -27 | \u00a0 | \u00a0 | -27 |
Changes that relate to current service | -27 | -27 | -152 | -206 |
\u2013 finance result through profit or loss | 124 | 1 | 4 | 129 |
\u2013 finance result recognised in OCI | -380 | 7 | \u00a0 | -373 |
Finance result on insurance contracts | -256 | 8 | 4 | -244 |
\u2013 premiums received | 1,990 | \u00a0 | \u00a0 | 1,990 |
\u2013 acquisition costs paid | -104 | \u00a0 | \u00a0 | -104 |
\u2013 claims, benefits and attributable expenses paid | -2,434 | \u00a0 | \u00a0 | -2,434 |
Cash flows | -548 | 0 | 0 | -548 |
Foreign currency exchange differences | -552 | -10 | -43 | -605 |
Net closing balance | 10,806 | 259 | 982 | 12,047 |
\u2013 closing balance presented as assets | \u00a0 | \u00a0 | \u00a0 | 0 |
\u2013 closing balance presented as liabilities | 10,806 | 259 | 982 | 12,047 |
Net closing balance | 10,806 | 259 | 982 | 12,047 |
NN uses the following Alternative Performance Measures (APMs, also referred to as Non-GAAP measures) in its external financial reporting: Operating result, Operating Capital Generation and Administrative expenses. Because these measures are not determined in accordance with IFRS-EU, they may not be comparable to other similarly titled measures of performance of other companies.
Operating result (before tax) is used by NN to evaluate the financial performance of its segments. The objective of the Operating result is to provide a better understanding of the underlying business performance by eliminating non-operating volatility from the result before tax. The NN operating result is the sum of the operating results for each segment in the group. The result on transactions between segments is eliminated in the result of the relevant segment. Each segment\u2019s operating result is calculated by adjusting the reported result before tax for the following items:
Non-operating items:
Gains (losses) and impairments on financial assets: realised gains and impairments on financial assets that are classified as Investments at cost and Investments at fair value through Other Comprehensive Income. This relates mainly to debt securities and loans.
Revaluations: revaluations (changes in fair value) on Investments at fair value through profit or loss that are held in the general account. This relates mainly to private equity and real estate and loans, debt securities and equity securities accounted for at fair value through profit or loss and derivatives for which no hedge accounting is applied.
Market & other impacts: other items that are not representative of the underlying business performance of the segment. This may include (changes in) losses from onerous contracts due to assumption changes, impairments on intangible assets and specific one-off expenses.
Special items: items of income or expense before tax that are significant and arise from events or transactions that are clearly distinct from the ordinary business activities and therefore are not expected to recur frequently or regularly. This includes restructuring expenses, rebranding costs, results related to early redemption of debt and gains (losses) from employee pension plan amendments or curtailments.
Result on divestments: realised gains (losses) on the divestment of entities or businesses.
Acquisition intangibles and goodwill: amortisation and impairment on acquisition related intangible assets and impairment of goodwill.
The operating result for the life insurance business is analysed through a margin analysis, which includes the insurance and reinsurance result, investment result and other result. The insurance and reinsurance result represents the sum of the profit margin (including release of the CSM), the technical result (including release of the risk adjustment), service expense result, and other insurance and reinsurance result. The investment result reflects that difference between the investment income (on operating basis) and the finance result (on operating basis).
Operating result as presented above is an Alternative Performance Measure (non-GAAP financial measure) and is not a measure of financial performance under IFRS-EU.
Operating Capital Generation (OCG) is used by NN to evaluate the performance of both the consolidated Group and its segments. The objective of OCG is to provide a better understanding of the underlying regulatory capital generated during the reporting period by the business units. Given the importance of regulatory capital and the Solvency II ratio for NN and its subsidiaries, NN believes that the underlying capital generation measured through OCG is an important metric to evaluate the performance of NN and its segments. The NN OCG is the sum of the OCG for each segment in the group. OCG is analysed and disclosed both by segment and by underlying driver.
NN analyses the change in the excess of Solvency II Own Funds over the Solvency Capital Requirement (SCR) in the following components:
Operating Capital Generation.
Market variance.
Capital flows.
Other.
Operating Capital Generation is the movement in the Solvency II surplus (Own Funds before eligibility over SCR at 100%) in the period due to operating items, including the impact of new business, expected investment returns in excess of the unwind of liabilities, release of the risk margin, operating variances, non-life underwriting result, contribution of non-Solvency II entities and holding expenses and debt costs and the change in the SCR. It excludes economic variances, economic assumption changes and nonoperating expenses.
OCG is an alternative measure of performance and is not a measure of financial performance under IFRS-EU.
OCG is calculated independent from NN\u2019s (accounting policies under) IFRS-EU. The expected investment return is a key assumption in determining OCG.
Because OCG is not defined in IFRS-EU or Solvency II, it may not be comparable to other similarly titled measures of performance of other companies.
As OCG is not derived from a comparable metrics under IFRS-EU, it cannot be reconciled to an IFRS-EU equivalent.
NN monitors the level of expenses through the administrative expenses. Administrative expenses are calculated as the total of IFRS Staff and Other operating expenses excluding claims handling expenses, expenses related to investment and insurance commissions, fees as presented in insurance (acquisition) expenses, commissions and non-operating items.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Staff expenses | 1,744 | 1,698 |
Other operating expenses | 2,682 | 2,531 |
Total IFRS operating expenses (before attribution) | 4,426 | 4,229 |
Presented in insurance expenses and commissions | 1,346 | 1,292 |
Presented in insurance acquisition expenses | 581 | 537 |
Presented in non-operating items (including special items) | 211 | 117 |
Other adjustments | 48 | 53 |
Administrative expenses | 2,240 | 2,230 |
In addition, NN discloses a number of other metrics (that are not defined in IFRS and/or not defined in regulatory capital legislation). As these are not derived from comparable metrics under IFRS, these cannot be reconciled to an IFRS equivalent. These include the following:
Gross written premiums: premiums written in the reporting period. Premiums written plus or minus the change in premiums receivables equals premiums received as recorded in the cash flow sections on insurance contracts.
New sales (Annual Premium Equivalent, APE) represents annualised premium equivalents sold in the period, with single premiums calculated at 1/10th of the single premium amounts.
Combined ratio: the sum of the claims ratio (claims incurred, net of reinsurance, excluding unwind of interest accrual, divided by net earned premiums) and the expense ratio (sum of acquisition costs and administrative expenses, divided by net earned premiums).
Financial leverage ratio: the percentage of financial leverage in the total of financial leverage and equity.
Fixed cost coverage ratio: the ability of Earnings Before Interest and Tax (EBIT) to cover funding costs on financial leverage; calculated on a last 12-months basis.
Free cash flow: the change in the cash capital position at the holding company over the period, excluding acquisitions and capital transactions with shareholders and debtholders.
Cash capital position at the holding company: net current assets available at the holding company.
Net interest margin (NIM): interest result of the banking operations divided by the average total interest-bearing assets of the banking operations.
2025 | Life | Non-life | Total |
|---|---|---|---|
Gross written premiums | 8,787 | 4,469 | 13,256 |
Reinsurance ceded | -2,028 | -216 | -2,244 |
Net written premiums | 6,759 | 4,253 | 11,012 |
2024 | Life | Non-life | Total |
|---|---|---|---|
Gross written premiums | 9,776 | 4,202 | 13,978 |
Reinsurance ceded | -1,869 | -201 | -2,070 |
Net written premiums | 7,907 | 4,001 | 11,908 |
The table below provides additional information on principal subsidiaries, the nature of the main activities and employees by country.
Country/Name of principal subsidiaries | Main activity | Total revenues1 | Revenues2 | Result before tax | Income tax paid | Income tax accrued | Accumulated earnings | Average number of employees3 |
|---|---|---|---|---|---|---|---|---|
Nationale-Nederlanden Levensverzekering Maatschappij N.V. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Bank N.V. | Banking | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Schadeverzekering Maatschappij N.V. | General insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
REI Investment I B.V. | Real estate | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
NN Re (Netherlands) N.V. | Reinsurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
The Netherlands (NL) | \u00a0 | 13,449 | 13,167 | 828 | -195 | 191 | 18,657 | 9,141 |
Nationale-Nederlanden Towarzystwo Ubezpiecze\u0144 na \u017bycie S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. | Pensions | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Poland (PL)4 | \u00a0 | 941 | 605 | 172 | 12 | 14 | 772 | 1,060 |
NN Life Insurance Company, Ltd. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Japan (JP) | \u00a0 | 821 | 669 | 111 | 9 | 21 | 863 | 1,023 |
NN Hellenic Life Insurance Co. S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Greece (GR) | \u00a0 | 819 | 507 | 84 | 14 | 18 | 144 | 587 |
NN Insurance Belgium nv | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Belgium (BE) | \u00a0 | 728 | 686 | 12 | 2 | \u00a0 | 989 | 649 |
Nationale Nederlanden Vida, Compania de Seguros y Reaseguros. S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale Nederlanden Generales, Compania de Seguros y Reaseguros, S.A. | General insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Spain (ES) | \u00a0 | 595 | 454 | 98 | 5 | 6 | 567 | 651 |
NN Asigurari de Viata S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Romania (RO)5 | \u00a0 | 380 | 241 | 63 | 8 | 9 | 222 | 544 |
NN \u017divotn\u00ed poji\u0161\u0165ovna N.V. (pobo\u010dka pro \u010ceskou republiku) | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Czech Republic (CZ) | \u00a0 | 286 | 166 | 32 | 9 | 11 | 54 | 726 |
NN \u017divotn\u00e1 poist'ovna, a.s. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Slovak Republic (SK) | \u00a0 | 205 | 171 | 57 | 30 | 33 | 325 | 410 |
NN Biztos\u00edt\u00f3 Z\u00e1rtk\u00f6r\u00fben M\u00fbk\u00f6d\u00f5 R\u00e9szv\u00e9nyt\u00e1rsas\u00e1g | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hungary (HU) | \u00a0 | 178 | 135 | 20 | 3 | 4 | 131 | 537 |
Italy (IT) | \u00a0 | 14 | 14 | 14 | 2 | 3 | -46 | \u00a0 |
France (FR) | \u00a0 | 11 | 12 | 8 | \u00a0 | 7 | 170 | \u00a0 |
Denmark (DK) | \u00a0 | 6 | 5 | 5 | \u00a0 | \u00a0 | 12 | \u00a0 |
Germany (DE) | \u00a0 | 4 | 6 | 4 | 1 | 1 | 71 | \u00a0 |
United Kingdom (UK) | \u00a0 | 1 | 1 | 2 | \u00a0 | 3 | -74 | \u00a0 |
Turkey (TR) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 81 |
Argentina (AR) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -1 | \u00a0 |
Mexico (MX) | \u00a0 | \u00a0 | \u00a0 | -1 | \u00a0 | \u00a0 | -2 | 1 |
Total | \u00a0 | 18,438 | 16,839 | 1,509 | -100 | 321 | 22,854 | 15,410 |
The 2024 real estate numbers are changed due to pillar II alignment, as also enacted on the 2025 real estate numbers.
Country/Name of principal subsidiaries | Main activity | Total revenues1 | Revenues2 | Result before tax | Income tax paid | Income tax accrued | Accumulated earnings | Average number of employees3 |
|---|---|---|---|---|---|---|---|---|
Nationale-Nederlanden Levensverzekering Maatschappij N.V. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Bank N.V. | Banking | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Schadeverzekering Maatschappij N.V. | General insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
REI Investment I B.V. | Real estate | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
NN Re (Netherlands) N.V. | Reinsurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
The Netherlands (NL) | \u00a0 | 15,988 | 12,674 | 1,145 | 273 | 60 | 21,227 | 9,215 |
NN Life Insurance Company, Ltd. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Japan (JP) | \u00a0 | 840 | 686 | 131 | -16 | 10 | 1,003 | 1,005 |
NN Insurance Belgium nv | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Belgium (BE) | \u00a0 | 764 | 670 | 132 | 1 | 8 | 949 | 641 |
Nationale Nederlanden Vida, Compania de Seguros y Reaseguros. S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale Nederlanden Generales, Compania de Seguros y Reaseguros, S.A. | General insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Spain (ES) | \u00a0 | 669 | 423 | 88 | 2 | 3 | 518 | 594 |
Nationale-Nederlanden Towarzystwo Ubezpiecze\u0144 na \u017bycie S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. | Pensions | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Poland (PL)4 | \u00a0 | 655 | 565 | 152 | 13 | 7 | 754 | 1,100 |
NN Hellenic Life Insurance Co. S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Greece (GR) | \u00a0 | 639 | 463 | 86 | \u00a0 | \u00a0 | 139 | 567 |
NN Biztos\u00edt\u00f3 Z\u00e1rtk\u00f6r\u00fben M\u00fbk\u00f6d\u00f5 R\u00e9szv\u00e9nyt\u00e1rsas\u00e1g | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hungary (HU) | \u00a0 | 302 | 121 | 15 | 2 | 3 | 107 | 515 |
NN Asigurari de Viata S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Romania (RO)5 | \u00a0 | 254 | 211 | 43 | 7 | 7 | 203 | 546 |
NN \u017divotn\u00ed poji\u0161\u0165ovna N.V. (pobo\u010dka pro \u010ceskou republiku) | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Czech Republic (CZ)5 | \u00a0 | 233 | 154 | 29 | -10 | 9 | 58 | 710 |
NN \u017divotn\u00e1 poist'ovna, a.s. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Slovak Republic (SK) | \u00a0 | 208 | 157 | 49 | 27 | 30 | 302 | 402 |
Turkey (TR) | \u00a0 | 28 | 28 | \u00a0 | \u00a0 | \u00a0 | -8 | 182 |
France (FR) | \u00a0 | 22 | 14 | 15 | -1 | 1 | 232 | \u00a0 |
Denmark (DK) | \u00a0 | 20 | 9 | 18 | 2 | \u00a0 | 40 | \u00a0 |
Germany (DE) | \u00a0 | 13 | 6 | 19 | \u00a0 | \u00a0 | 68 | \u00a0 |
Italy (IT) | \u00a0 | 12 | 13 | 12 | 2 | 2 | -52 | \u00a0 |
United Kingdom (UK) | \u00a0 | 1 | 1 | 2 | \u00a0 | \u00a0 | -62 | \u00a0 |
Mexico (MX) | \u00a0 | 1 | \u00a0 | \u00a0 | 2 | \u00a0 | -3 | 1 |
Total | \u00a0 | 20,649 | 16,195 | 1,936 | 304 | 140 | 25,475 | 15,478 |
Information on guarantees issued by NN to subsidiaries under article 403 of Book 2 of the Dutch Civil Code is included in the Parent company annual accounts and filed with the Chamber of Commerce.
The table below provides additional information on principal subsidiaries, the nature of the main activities and employees by country.
Country/Name of principal subsidiaries | Main activity | Total revenues1 | Revenues2 | Result before tax | Income tax paid | Income tax accrued | Accumulated earnings | Average number of employees3 |
|---|---|---|---|---|---|---|---|---|
Nationale-Nederlanden Levensverzekering Maatschappij N.V. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Bank N.V. | Banking | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Schadeverzekering Maatschappij N.V. | General insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
REI Investment I B.V. | Real estate | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
NN Re (Netherlands) N.V. | Reinsurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
The Netherlands (NL) | \u00a0 | 13,449 | 13,167 | 828 | -195 | 191 | 18,657 | 9,141 |
Nationale-Nederlanden Towarzystwo Ubezpiecze\u0144 na \u017bycie S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. | Pensions | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Poland (PL)4 | \u00a0 | 941 | 605 | 172 | 12 | 14 | 772 | 1,060 |
NN Life Insurance Company, Ltd. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Japan (JP) | \u00a0 | 821 | 669 | 111 | 9 | 21 | 863 | 1,023 |
NN Hellenic Life Insurance Co. S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Greece (GR) | \u00a0 | 819 | 507 | 84 | 14 | 18 | 144 | 587 |
NN Insurance Belgium nv | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Belgium (BE) | \u00a0 | 728 | 686 | 12 | 2 | \u00a0 | 989 | 649 |
Nationale Nederlanden Vida, Compania de Seguros y Reaseguros. S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale Nederlanden Generales, Compania de Seguros y Reaseguros, S.A. | General insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Spain (ES) | \u00a0 | 595 | 454 | 98 | 5 | 6 | 567 | 651 |
NN Asigurari de Viata S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Romania (RO)5 | \u00a0 | 380 | 241 | 63 | 8 | 9 | 222 | 544 |
NN \u017divotn\u00ed poji\u0161\u0165ovna N.V. (pobo\u010dka pro \u010ceskou republiku) | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Czech Republic (CZ) | \u00a0 | 286 | 166 | 32 | 9 | 11 | 54 | 726 |
NN \u017divotn\u00e1 poist'ovna, a.s. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Slovak Republic (SK) | \u00a0 | 205 | 171 | 57 | 30 | 33 | 325 | 410 |
NN Biztos\u00edt\u00f3 Z\u00e1rtk\u00f6r\u00fben M\u00fbk\u00f6d\u00f5 R\u00e9szv\u00e9nyt\u00e1rsas\u00e1g | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hungary (HU) | \u00a0 | 178 | 135 | 20 | 3 | 4 | 131 | 537 |
Italy (IT) | \u00a0 | 14 | 14 | 14 | 2 | 3 | -46 | \u00a0 |
France (FR) | \u00a0 | 11 | 12 | 8 | \u00a0 | 7 | 170 | \u00a0 |
Denmark (DK) | \u00a0 | 6 | 5 | 5 | \u00a0 | \u00a0 | 12 | \u00a0 |
Germany (DE) | \u00a0 | 4 | 6 | 4 | 1 | 1 | 71 | \u00a0 |
United Kingdom (UK) | \u00a0 | 1 | 1 | 2 | \u00a0 | 3 | -74 | \u00a0 |
Turkey (TR) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 81 |
Argentina (AR) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -1 | \u00a0 |
Mexico (MX) | \u00a0 | \u00a0 | \u00a0 | -1 | \u00a0 | \u00a0 | -2 | 1 |
Total | \u00a0 | 18,438 | 16,839 | 1,509 | -100 | 321 | 22,854 | 15,410 |
The 2024 real estate numbers are changed due to pillar II alignment, as also enacted on the 2025 real estate numbers.
Country/Name of principal subsidiaries | Main activity | Total revenues1 | Revenues2 | Result before tax | Income tax paid | Income tax accrued | Accumulated earnings | Average number of employees3 |
|---|---|---|---|---|---|---|---|---|
Nationale-Nederlanden Levensverzekering Maatschappij N.V. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Bank N.V. | Banking | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Schadeverzekering Maatschappij N.V. | General insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
REI Investment I B.V. | Real estate | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
NN Re (Netherlands) N.V. | Reinsurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
The Netherlands (NL) | \u00a0 | 15,988 | 12,674 | 1,145 | 273 | 60 | 21,227 | 9,215 |
NN Life Insurance Company, Ltd. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Japan (JP) | \u00a0 | 840 | 686 | 131 | -16 | 10 | 1,003 | 1,005 |
NN Insurance Belgium nv | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Belgium (BE) | \u00a0 | 764 | 670 | 132 | 1 | 8 | 949 | 641 |
Nationale Nederlanden Vida, Compania de Seguros y Reaseguros. S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale Nederlanden Generales, Compania de Seguros y Reaseguros, S.A. | General insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Spain (ES) | \u00a0 | 669 | 423 | 88 | 2 | 3 | 518 | 594 |
Nationale-Nederlanden Towarzystwo Ubezpiecze\u0144 na \u017bycie S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. | Pensions | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Poland (PL)4 | \u00a0 | 655 | 565 | 152 | 13 | 7 | 754 | 1,100 |
NN Hellenic Life Insurance Co. S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Greece (GR) | \u00a0 | 639 | 463 | 86 | \u00a0 | \u00a0 | 139 | 567 |
NN Biztos\u00edt\u00f3 Z\u00e1rtk\u00f6r\u00fben M\u00fbk\u00f6d\u00f5 R\u00e9szv\u00e9nyt\u00e1rsas\u00e1g | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hungary (HU) | \u00a0 | 302 | 121 | 15 | 2 | 3 | 107 | 515 |
NN Asigurari de Viata S.A. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Romania (RO)5 | \u00a0 | 254 | 211 | 43 | 7 | 7 | 203 | 546 |
NN \u017divotn\u00ed poji\u0161\u0165ovna N.V. (pobo\u010dka pro \u010ceskou republiku) | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Czech Republic (CZ)5 | \u00a0 | 233 | 154 | 29 | -10 | 9 | 58 | 710 |
NN \u017divotn\u00e1 poist'ovna, a.s. | Life insurance | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Slovak Republic (SK) | \u00a0 | 208 | 157 | 49 | 27 | 30 | 302 | 402 |
Turkey (TR) | \u00a0 | 28 | 28 | \u00a0 | \u00a0 | \u00a0 | -8 | 182 |
France (FR) | \u00a0 | 22 | 14 | 15 | -1 | 1 | 232 | \u00a0 |
Denmark (DK) | \u00a0 | 20 | 9 | 18 | 2 | \u00a0 | 40 | \u00a0 |
Germany (DE) | \u00a0 | 13 | 6 | 19 | \u00a0 | \u00a0 | 68 | \u00a0 |
Italy (IT) | \u00a0 | 12 | 13 | 12 | 2 | 2 | -52 | \u00a0 |
United Kingdom (UK) | \u00a0 | 1 | 1 | 2 | \u00a0 | \u00a0 | -62 | \u00a0 |
Mexico (MX) | \u00a0 | 1 | \u00a0 | \u00a0 | 2 | \u00a0 | -3 | 1 |
Total | \u00a0 | 20,649 | 16,195 | 1,936 | 304 | 140 | 25,475 | 15,478 |
Information on guarantees issued by NN to subsidiaries under article 403 of Book 2 of the Dutch Civil Code is included in the Parent company annual accounts and filed with the Chamber of Commerce.
Income tax on the result for the year comprises current and deferred tax. Income tax is generally recognised in the profit and loss account but is recognised directly in equity if the tax relates to items that are recognised directly in equity.
The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.
Deferred tax is provided in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying values in the balance sheet. Deferred tax is determined using tax rates (and laws) applicable in the jurisdictions in which NN is liable to taxation, that have been enacted or substantively enacted at the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets and liabilities are not discounted.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses carried forward where it is probable that future taxable profits will be available against which the temporary differences can be used. Unrecognised deferred tax assets are reassessed periodically and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is provided on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by NN and it is probable that the difference will not reverse in the foreseeable future. The tax effects of income tax losses available for carry forward are recognised as an asset where it is probable that future taxable profits will be available against which these losses can be used.
Offsetting deferred tax assets with deferred tax liabilities is allowed as long as there is a legally enforceable right to offset current tax assets against current tax liabilities together with the intention to do so and the deferred taxes relate to income taxes levied by the same taxation authority on the same entity or on the same fiscal unity.
NN is subject to the requirements of the International Tax Reform \u2013 Pillar Two Model Rules and assessed the potential impact of the Pillar Two minimum taxation requirements. In 2025, there was no significant impact in any of the jurisdictions in which it operates and no impact on the NN effective tax rate. NN applied the temporary mandatory relief in IFRS for the potential deferred tax impact of Pillar Two top-up tax.
| \u00a0 | Net liability 2024 | Changes through equity | Changes through net result | Changes in the composition of the group and other changes | Foreign currency exchange differences | Net liability 2025 |
|---|---|---|---|---|---|---|
Investments | -2,006 | -760 | -22 | 107 | 41 | -2,640 |
Investments in real estate | 1,046 | \u00a0 | 70 | -16 | \u00a0 | 1,100 |
Insurance contracts | 645 | 1,241 | 146 | 66 | -61 | 2,037 |
Cash flow hedges | 1,006 | -703 | -5 | \u00a0 | 1 | 299 |
Fiscal reserves | 2 | \u00a0 | \u00a0 | -2 | \u00a0 | 0 |
Unused tax losses carried forward | -123 | \u00a0 | -202 | -1 | \u00a0 | -326 |
Other | 100 | 9 | 4 | -169 | 1 | -55 |
Deferred tax | 670 | -213 | -9 | -15 | -18 | 415 |
\u2013 closing balance presented as assets | 764 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 616 |
\u2013 closing balance presented as liabilities | 94 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 201 |
Deferred tax | 670 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 415 |
| \u00a0 | Net liability 2023 | Changes through equity | Changes through net result | Changes in the composition of the group and other changes | Foreign currency exchange differences | Net liability 2024 |
|---|---|---|---|---|---|---|
Investments | -2,152 | 151 | -7 | \u00a0 | 2 | -2,006 |
Investments in real estate | 1,013 | \u00a0 | 51 | -18 | \u00a0 | 1,046 |
Insurance contracts | 594 | -129 | 188 | \u00a0 | -8 | 645 |
Cash flow hedges | 990 | 16 | \u00a0 | \u00a0 | \u00a0 | 1,006 |
Fiscal reserves | 36 | \u00a0 | -34 | \u00a0 | \u00a0 | 2 |
Unused tax losses carried forward | -134 | \u00a0 | 11 | \u00a0 | \u00a0 | -123 |
Other | 66 | 4 | -15 | 43 | 2 | 100 |
Deferred tax | 413 | 42 | 194 | 25 | -4 | 670 |
\u2013 closing balance presented as assets | 559 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 764 |
\u2013 closing balance presented as liabilities | 146 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 94 |
Deferred tax | 413 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 670 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Total unused tax losses carried forward | 1,155 | 741 |
Unused tax losses carried forward not recognised as a deferred tax asset | -122 | -217 |
Unused tax losses carried forward recognised as a deferred tax asset | 1,033 | 524 |
Average tax rate | 31.6% | 23.4% |
Deferred tax asset | 326 | 123 |
| \u00a0 | No deferred tax asset recognised | Deferred tax asset recognised | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Within 1 year | \u00a0 | 9 | \u00a0 | 7 |
More than 1 year but less than 5 years | 2 | 6 | 366 | 135 |
More than 5 years but less than 10 years | 3 | \u00a0 | \u00a0 | \u00a0 |
Unlimited | 117 | 202 | 667 | 382 |
Total unused tax losses carried forward | 122 | 217 | 1,033 | 524 |
Deferred tax assets are recognised for temporary deductible differences, for tax losses carried forward and unused tax credits only to the extent that realisation of the related tax benefit is probable.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Current tax | 321 | 140 |
Deferred tax | -9 | 194 |
Taxation on result | 312 | 334 |
NN, together with certain of its subsidiaries, is a part of a fiscal unity for Dutch income tax purposes. The members of the fiscal unity are jointly and severally liable for any income taxes payable by the Dutch fiscal unity.
Reference is made to Note 30 Principal subsidiaries and geographical information for more information on the taxation per country.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Result before tax | 1,509 | 1,936 |
Weighted average statutory tax rate | 24.1% | 24.6% |
Weighted average statutory tax amount | 364 | 477 |
Participation exemption | -42 | -126 |
Other income not subject to tax and other | -2 | -18 |
Expenses not deductible for tax purposes | 17 | 8 |
Impact on deferred tax from change in tax rates | 5 | 2 |
Tax benefit for previously unrecognised amounts | -12 | 6 |
Additional local taxes | 9 | \u00a0 |
Adjustments to prior years | -27 | -15 |
Effective tax amount | 312 | 334 |
Effective tax rate | 20.6% | 17.3% |
In 2025, the effective tax rate of 20,6% was lower than the weighted average statutory tax rate of 24.1%. This was mainly a result of tax exempted income on investments, the tax impact on the sale of the Turkish operations and prior years adjustments.
In 2024, the effective tax rate of 17.3% was lower than the weighted average statutory tax rate of 24.6%. This was mainly a result of tax exempt investment results.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Finance result on (re)insurance contracts recognised in OCI | -1,204 | 118 |
Revaluations on debt securities and loans at fair value through OCI | 760 | 134 |
Realised gains (losses) transferred to the profit and loss account | -88 | -265 |
Changes in cash flow hedge reserve | 703 | -16 |
Remeasurement of the net defined benefit asset/liability | -5 | -3 |
Income tax | 166 | -32 |
Income tax on the result for the year comprises current and deferred tax. Income tax is generally recognised in the profit and loss account but is recognised directly in equity if the tax relates to items that are recognised directly in equity.
The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i15288": { "value": "Deferred tax is provided in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying values in the balance sheet. Deferred tax is determined using tax rates (and laws) applicable in the jurisdictions in which NN is liable to taxation, that have been enacted or substantively enacted at the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets and liabilities are not discounted.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses carried forward where it is probable that future taxable profits will be available against which the temporary differences can be used. Unrecognised deferred tax assets are reassessed periodically and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is provided on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by NN and it is probable that the difference will not reverse in the foreseeable future. The tax effects of income tax losses available for carry forward are recognised as an asset where it is probable that future taxable profits will be available against which these losses can be used.
Offsetting deferred tax assets with deferred tax liabilities is allowed as long as there is a legally enforceable right to offset current tax assets against current tax liabilities together with the intention to do so and the deferred taxes relate to income taxes levied by the same taxation authority on the same entity or on the same fiscal unity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i15289": { "value": "Deferred tax is provided in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying values in the balance sheet. Deferred tax is determined using tax rates (and laws) applicable in the jurisdictions in which NN is liable to taxation, that have been enacted or substantively enacted at the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets and liabilities are not discounted.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses carried forward where it is probable that future taxable profits will be available against which the temporary differences can be used. Unrecognised deferred tax assets are reassessed periodically and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is provided on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by NN and it is probable that the difference will not reverse in the foreseeable future. The tax effects of income tax losses available for carry forward are recognised as an asset where it is probable that future taxable profits will be available against which these losses can be used.
Offsetting deferred tax assets with deferred tax liabilities is allowed as long as there is a legally enforceable right to offset current tax assets against current tax liabilities together with the intention to do so and the deferred taxes relate to income taxes levied by the same taxation authority on the same entity or on the same fiscal unity.
| \u00a0 | Net liability 2024 | Changes through equity | Changes through net result | Changes in the composition of the group and other changes | Foreign currency exchange differences | Net liability 2025 |
|---|---|---|---|---|---|---|
Investments | -2,006 | -760 | -22 | 107 | 41 | -2,640 |
Investments in real estate | 1,046 | \u00a0 | 70 | -16 | \u00a0 | 1,100 |
Insurance contracts | 645 | 1,241 | 146 | 66 | -61 | 2,037 |
Cash flow hedges | 1,006 | -703 | -5 | \u00a0 | 1 | 299 |
Fiscal reserves | 2 | \u00a0 | \u00a0 | -2 | \u00a0 | 0 |
Unused tax losses carried forward | -123 | \u00a0 | -202 | -1 | \u00a0 | -326 |
Other | 100 | 9 | 4 | -169 | 1 | -55 |
Deferred tax | 670 | -213 | -9 | -15 | -18 | 415 |
\u2013 closing balance presented as assets | 764 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 616 |
\u2013 closing balance presented as liabilities | 94 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 201 |
Deferred tax | 670 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 415 |
| \u00a0 | Net liability 2023 | Changes through equity | Changes through net result | Changes in the composition of the group and other changes | Foreign currency exchange differences | Net liability 2024 |
|---|---|---|---|---|---|---|
Investments | -2,152 | 151 | -7 | \u00a0 | 2 | -2,006 |
Investments in real estate | 1,013 | \u00a0 | 51 | -18 | \u00a0 | 1,046 |
Insurance contracts | 594 | -129 | 188 | \u00a0 | -8 | 645 |
Cash flow hedges | 990 | 16 | \u00a0 | \u00a0 | \u00a0 | 1,006 |
Fiscal reserves | 36 | \u00a0 | -34 | \u00a0 | \u00a0 | 2 |
Unused tax losses carried forward | -134 | \u00a0 | 11 | \u00a0 | \u00a0 | -123 |
Other | 66 | 4 | -15 | 43 | 2 | 100 |
Deferred tax | 413 | 42 | 194 | 25 | -4 | 670 |
\u2013 closing balance presented as assets | 559 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 764 |
\u2013 closing balance presented as liabilities | 146 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 94 |
Deferred tax | 413 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 670 |
The following table presents the estimated fair value of NN\u2019s financial assets and liabilities. Certain balance sheet items are not included in the table, as they do not meet the definition of a financial asset or liability or are (re)insurance contracts. The aggregation of the fair value presented below does not represent and should not be construed as representing the underlying value of NN.
| \u00a0 | Estimated fair value | Balance sheet value | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 6,404 | 6,929 | 6,404 | 6,929 |
Investments at fair value through Other Comprehensive Income | 99,469 | 106,050 | 99,469 | 106,050 |
Investments at cost | 22,151 | 21,780 | 22,374 | 22,234 |
Investments at fair value through profit or loss | 56,570 | 54,968 | 56,570 | 54,968 |
Derivatives | 1,330 | 2,684 | 1,330 | 2,684 |
Financial assets | 185,924 | 192,411 | 186,147 | 192,865 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment contracts for risk of company | 1,099 | 1,176 | 1,116 | 1,201 |
Investment contracts for risk of policyholders | 2,873 | 2,658 | 2,873 | 2,658 |
Investment contracts | 3,972 | 3,834 | 3,989 | 3,859 |
Debt instruments issued | 1,123 | 1,109 | 1,197 | 1,196 |
Subordinated debt | 2,545 | 2,560 | 2,348 | 2,346 |
Other borrowed funds | 9,564 | 7,630 | 9,875 | 7,987 |
Customer deposits | 17,473 | 17,198 | 17,915 | 17,474 |
Derivatives | 4,360 | 3,671 | 4,360 | 3,671 |
Financial liabilities | 39,037 | 36,002 | 39,684 | 36,533 |
The estimated fair value represents the price at which an orderly transaction to sell the financial asset or to transfer the financial liability would take place between market participants at the balance sheet date (exit price).
The fair value of financial assets and liabilities is based on unadjusted quoted market prices at the balance sheet date where available. Such quoted market prices are primarily obtained from exchange prices for listed instruments. Where an exchange price is not available, market prices may be obtained from external market vendors, brokers or market makers. In general, positions are valued taking the bid price for a long position and the offer price for a short position and financial liabilities. In some cases, positions are marked at mid-market prices. When markets are less liquid there may be a range of prices for the same security from different price sources; selecting the most appropriate price requires judgement and could result in different estimates of the fair value.
For certain financial assets and liabilities quoted market prices are not available, for example for financial instruments that are not traded in an active market. An active market for the financial instrument is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Assessing whether a market is active requires judgement, considering factors specific to the financial instrument.
For these financial assets and liabilities, fair value is determined using valuation techniques, based on market conditions existing at each balance sheet date. These valuation techniques range from discounting of cash flows to valuation models, where relevant pricing factors including the market price of the underlying reference instruments, market parameters (volatilities, correlations and credit ratings) and customer behaviour are taken into account.
Valuation techniques are subjective in nature and significant judgement is involved in establishing the fair value for certain financial assets and liabilities. Valuation techniques involve various assumptions regarding pricing factors. The use of different valuation techniques and assumptions could produce significantly different estimates of the fair value.
The following methods and assumptions were used by NN to estimate the fair value of the financial instruments:
Cash and cash equivalents are recognised at their nominal value which approximates the fair value.
Derivative contracts can either be exchange-traded or over the counter (OTC). The fair value of exchange traded derivatives is determined using quoted market prices in an active market and those derivatives are classified in Level 1 of the fair value hierarchy. For those instruments that are not actively traded, the fair value is estimated based on valuation techniques. OTC derivatives and derivatives trading in an inactive market are valued using valuation techniques because quoted market prices in an active market are not available for such instruments. The valuation techniques and inputs depend on the type of derivative and the nature of the underlying instruments. The principal techniques used to value these instruments are based on discounted cash flows, Black-Scholes option models and Monte Carlo simulation. These valuation models calculate the present value of expected future cash flows, based on \u2018no arbitrage\u2019 principles. These models are commonly used in the financial industry. Inputs to valuation models are determined from observable market data where possible. Certain inputs may not be observable in the market directly but can be determined from observable prices via valuation model calibration procedures. The inputs used include prices available from exchanges, dealers, brokers or providers of pricing, yield curves, credit spreads, default rates, recovery rates, dividend rates, volatility of underlying interest rates, equity prices and foreign currency exchange rates. These inputs are determined with reference to quoted prices, recently executed trades, independent market quotes and consensus data, where available.
The fair value of publicly traded equity securities is determined using quoted market prices when available.
Where no quoted market prices are available, fair value is determined based on quoted prices for similar instruments or other valuation techniques. The fair value of private equity is based on quoted market prices, if available. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and revenue multiples and by reference to market valuations for similar entities quoted in an active market.
The fair value for debt securities is based on quoted market prices, where available. Quoted market prices may be obtained from an exchange, dealer, broker, industry group, pricing service or regulatory service. If quoted prices in an active market are not available, fair value is based on an analysis of available market inputs, which may include values obtained from one or more pricing services or by a valuation technique that discounts expected future cash flows using market interest rate curves, referenced credit spreads, maturity of the investment and estimated prepayment rates where applicable.
For loans and advances that are repriced frequently and have had no significant changes in credit risk, carrying values represent a reasonable estimate of fair value. The fair value of other loans is estimated by discounting expected future cash flows using a discount rate that reflects credit risk, liquidity and other current market conditions.
The fair value of mortgage loans is estimated by discounting the cash flows on a loan part-by-loan part basis taking into account the characteristics of the loans by applying a market discount rate. The valuation method takes into account the type of mortgage, remaining period until interest reset date, credit quality (NHG, LTV buckets), prepayment and product-specific characteristics.
Loans with similar characteristics are aggregated for calculation purposes.
For investment contracts for risk of the company the fair value has been estimated using a discounted cash flow approach based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. For investment contracts for risk of policyholders the fair value generally equals the fair value of the underlying assets.
The fair value of subordinated debt and debt instruments issued is estimated using discounted cash flows based on interest rates and credit spreads that apply to similar instruments.
The fair value of other borrowed funds is generally based on quoted market prices or, if not available, on estimated prices by discounting expected future cash flows using a current market interest rate and credit spreads applicable to the yield, credit quality and maturity.
The carrying values of customer deposits with no stated maturity approximate their fair value. The fair values of deposits with stated maturities have been estimated based on discounting future cash flows using a discount rate that reflects credit risk, liquidity and other current market conditions.
The fair value of the financial instruments carried at fair value was determined as follows:
2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivatives | 12 | 1,318 | \u00a0 | 1,330 |
Investments at fair value through OCI | 48,618 | 15,645 | 35,206 | 99,469 |
Investments at fair value through profit or loss | 47,601 | 1,061 | 7,908 | 56,570 |
Financial assets | 96,231 | 18,024 | 43,114 | 157,369 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment contracts (for contracts at fair value) | 2,872 | 1 | \u00a0 | 2,873 |
Derivatives | 19 | 4,319 | 22 | 4,360 |
Financial liabilities | 2,891 | 4,320 | 22 | 7,233 |
2024 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivatives | 65 | 2,619 | \u00a0 | 2,684 |
Investments at fair value through OCI | 48,451 | 20,639 | 36,960 | 106,050 |
Investments at fair value through profit or loss | 45,035 | 1,708 | 8,225 | 54,968 |
Financial assets | 93,551 | 24,966 | 45,185 | 163,702 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment contracts (for contracts at fair value) | 2,658 | \u00a0 | \u00a0 | 2,658 |
Derivatives | 3 | 3,644 | 24 | 3,671 |
Financial liabilities | 2,661 | 3,644 | 24 | 6,329 |
NN has categorised its financial instruments that are either measured in the balance sheet at fair value or for which the fair value is disclosed, into a three level hierarchy based on the priority of the inputs to the valuation. The fair value hierarchy gives the highest priority to (unadjusted) quoted prices in active markets for identical assets or liabilities and the lowest priority to valuation techniques supported by unobservable inputs. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide reliable pricing information on an ongoing basis.
The fair value hierarchy consists of three levels, depending on whether the fair value is determined based on (unadjusted) quoted prices in an active market (Level 1), valuation techniques with observable inputs (Level 2) or valuation techniques that incorporate inputs which are unobservable and which have a more than insignificant impact on the fair value of the instrument (Level 3). Financial assets in Level 3 include, for example, illiquid debt instruments, complex OTC and credit derivatives, certain complex loans (for which current market information about similar assets to use as observable, corroborated data for all significant inputs into a valuation model is not available), mortgage loans and consumer lending, private equity securities and investments in real estate funds.
Observable inputs reflect market data obtained from independent sources. Unobservable inputs are inputs which are based on NN\u2019s own assumptions about the factors that market participants would use in pricing an asset or liability, developed based on the best information available in the circumstances.
Unobservable inputs may include volatility, correlation, spreads to discount rates, default rates and recovery rates, prepayment rates and certain credit spreads. Transfers into and transfers out of levels in the fair value hierarchy are recognised on the date of the event or change of circumstances that caused the transfer.
This category includes financial instruments whose fair value is determined directly by reference to published quotes in an active market that NN can access. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions with sufficient frequency and volume to provide reliable pricing information on an ongoing basis.
This category includes financial instruments whose fair value is determined using a valuation technique (e.g. a model), where inputs in the model are taken from an active market or are observable. If certain inputs in the model are unobservable the instrument is still classified in this category, provided that the impact of those unobservable inputs elements on the overall valuation is insignificant. Included in this category are items whose value is derived from quoted prices of similar instruments, but for which the prices are modified based on other market observable external data and items whose value is derived from quoted prices but for which there was insufficient evidence of an active market.
This category includes financial instruments whose fair value is determined using a valuation technique (e.g. a model) for which more than an insignificant part of the inputs in terms of the overall valuation are not market observable. This category also includes financial assets and liabilities whose fair value is determined by reference to price quotes but for which the market is considered inactive. An instrument is classified in its entirety as Level 3 if a significant portion of the instrument\u2019s fair value is driven by unobservable inputs.
Unobservable in this context means that there is little or no current market data available from which the price at which an orderly transaction would likely occur can be derived.
2025 | Investments at fair value through Other Comprehensive Income | Investments at fair value through profit or loss | Total |
|---|---|---|---|
Level 3 Financial assets \u2013 opening balance | 36,960 | 8,225 | 45,185 |
Amounts recognised in the profit and loss account | -176 | -62 | -238 |
Revaluations recognised in Other Comprehensive Income (equity) | -213 | \u00a0 | -213 |
Purchase | 2,444 | 409 | 2,853 |
Sale | -659 | -554 | -1,213 |
Maturity/settlement | -3,111 | -24 | -3,135 |
Transfers out of Level 3 | -12 | \u00a0 | -12 |
Transfers into Level 3 | \u00a0 | 27 | 27 |
Foreign currency exchange differences | -27 | -113 | -140 |
Level 3 Financial assets \u2013 closing balance | 35,206 | 7,908 | 43,114 |
2024 | Investments at fair value through Other Comprehensive Income | Investments at fair value through profit or loss | Total |
|---|---|---|---|
Level 3 Financial assets \u2013 opening balance | 39,479 | 7,547 | 47,026 |
Amounts recognised in the profit and loss account | -545 | 148 | -397 |
Revaluations recognised in Other Comprehensive Income (equity) | 1,700 | \u00a0 | 1,700 |
Purchase | 2,086 | 1,079 | 3,165 |
Sale | -101 | -534 | -635 |
Maturity/settlement | -5,385 | -24 | -5,409 |
Other transfers and reclassifications | \u00a0 | -48 | -48 |
Transfers out of Level 3 | -334 | \u00a0 | -334 |
Transfers into Level 3 | 16 | \u00a0 | 16 |
Changes in the composition of the group and other changes | 25 | \u00a0 | 25 |
Foreign currency exchange differences | 19 | 57 | 76 |
Level 3 Financial assets \u2013 closing balance | 36,960 | 8,225 | 45,185 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Level 3 Financial liabilities \u2013 opening balance | 24 | 20 |
Amounts recognised in the profit and loss account | -2 | 4 |
Level 3 Financial liabilities \u2013 closing balance | 22 | 24 |
2025 | Held at balance sheet date | Derecognised during the year | Total |
|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 |
Investments at fair value through Other Comprehensive Income | -101 | -75 | -176 |
Investments at fair value through profit or loss | -64 | 2 | -62 |
Financial assets | -165 | -73 | -238 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 |
Derivatives | -2 | \u00a0 | -2 |
Financial liabilities | -2 | 0 | -2 |
2024 | Held at balance sheet date | Derecognised during the year | Total |
|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 |
Investments at fair value through Other Comprehensive Income | -80 | -465 | -545 |
Investments at fair value through profit or loss | 147 | 1 | 148 |
Financial assets | 67 | -464 | -397 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 |
Derivatives | 4 | \u00a0 | 4 |
Financial liabilities | 4 | 0 | 4 |
Financial assets measured at fair value in the balance sheet as at 31 December 2025 of EUR 157,369 million (2024: EUR 163,702 million) include an amount of EUR 43,114 million ( 27 %) that is classified as Level 3 (2024: EUR 45,185 million ( 28 %)). Changes in Level 3 are disclosed above in the table \u2018Level 3 Financial assets\u2019.
Financial assets in Level 3 include both assets for which the fair value was determined using valuation techniques that incorporate unobservable inputs and assets for which the fair value was determined using quoted prices, but for which the market was not actively trading at or around the balance sheet date.
Unobservable inputs are inputs which are based on NN\u2019s own assumptions about the factors that market participants would use in pricing an asset, developed based on the best information available in the circumstances. Unobservable inputs may include volatility, correlation, spreads to discount rates, default rates and recovery rates, prepayment rates and certain credit spreads. Fair values that are determined using valuation techniques using unobservable inputs are sensitive to the inputs used. Fair values that are determined using quoted prices are not sensitive to unobservable inputs, as the valuation is based on unadjusted external price quotes. These are classified in Level 3 as a result of the illiquidity in the relevant market but are not significantly sensitive to NN\u2019s own unobservable inputs.
Unrealised gains and losses that relate to \u2018Level 3 Financial assets\u2019 are included in the profit and loss account as follows:
Those relating to Investments for risk of policyholders and other investments at fair value through profit or loss are included in \u2018Gains (losses) on Investments at fair value through profit or loss\u2019.
Those relating to derivatives are included in \u2018Result on derivatives and hedging\u2019.
The investments at fair value through Other Comprehensive Income classified as \u2018Level 3 Financial assets\u2019 amounted EUR 35,206 million as at 31 December 2025 (2024: EUR 36,960 million). Of these investments, EUR 413 million (2024: EUR 415 million) relates to investments in debt instruments and shares in funds of which the fair value is determined using (unadjusted) quoted prices or prices obtained from external asset managers, but for which there is no active market. EUR 34,793 million (2024: EUR 36,545 million) relates to investments in (mortgage) loans of which the fair value is determined using a discounted cash flow method; the most important drivers of the valuation (interest rate and valuation spread) are derived from observable market inputs; however, certain inputs, such as the prepayment and default assumptions, are not directly observable. A 10% change in valuation of these investments would increase or reduce shareholders\u2019 equity by EUR 3,521 million (2024: EUR 3,696 million), being approximately 18% (before tax) (2024: 19% (before tax)), of shareholders\u2019 equity.
Investments for risk of policyholders classified as \u2018Level 3 Financial assets\u2019 amounted EUR 2,216 million as at 31 December 2025 (2024: EUR 2,279 million). Net result is unaffected when reasonable possible alternative assumptions would have been used in measuring these investments.
The total amount of financial liabilities classified as Level 3 at 31 December 2025 of EUR 22 million (2024: EUR 24 million) relates to derivative positions. EUR 21 million (2024: EUR 23 million) relates to longevity hedges closed by NN. It is estimated that a 5% increase in mortality assumptions for these longevity hedges reduces result and equity before tax by EUR 3 million (2024: EUR 4million) and a 5% decrease in mortality assumptions increases result and equity before tax by EUR 9 million (2024: EUR 10million).
Financial assets and liabilities at cost The fair value of the financial instruments carried at cost in the balance sheet (where fair value is disclosed) was determined as follows:
2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 6,404 | \u00a0 | \u00a0 | 6,404 |
Investments at cost | \u00a0 | 7 | 22,144 | 22,151 |
Financial assets | 6,404 | 7 | 22,144 | 28,555 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Subordinated debt | 2,545 | \u00a0 | \u00a0 | 2,545 |
Debt instruments issued | 1,123 | \u00a0 | \u00a0 | 1,123 |
Other borrowed funds | 5,530 | 4,033 | 1 | 9,564 |
Investment contracts for risk of company | 317 | \u00a0 | 782 | 1,099 |
Customer deposits | 8,655 | 8,818 | \u00a0 | 17,473 |
Financial liabilities | 18,170 | 12,851 | 783 | 31,804 |
2024 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 6,929 | \u00a0 | \u00a0 | 6,929 |
Investments at cost | \u00a0 | \u00a0 | 21,780 | 21,780 |
Financial assets | 6,929 | 0 | 21,780 | 28,709 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Subordinated debt | 2,560 | \u00a0 | \u00a0 | 2,560 |
Debt instruments issued | 1,109 | \u00a0 | \u00a0 | 1,109 |
Other borrowed funds | 5,751 | 1,879 | \u00a0 | 7,630 |
Investment contracts for risk of company | 307 | \u00a0 | 869 | 1,176 |
Customer deposits | 9,091 | 8,107 | \u00a0 | 17,198 |
Financial liabilities | 18,818 | 9,986 | 869 | 29,673 |
The following table presents the estimated fair value of NN\u2019s non-financial assets that are measured at fair value in the balance sheet. Reference is made to Note 1 Accounting policies in the sections \u2018Real estate investments\u2019 and \u2018Property and equipment\u2019 for the methods and assumptions used by NN to estimate the fair value of the non-financial assets.
| \u00a0 | Estimated fair value | Balance sheet value | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Investments in real estate | 2,234 | 2,512 | 2,234 | 2,512 |
Property in own use | 70 | 91 | 70 | 91 |
Fair value of non-financial assets | 2,304 | 2,603 | 2,304 | 2,603 |
The fair value of the non-financial assets were determined as follows:
2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Investments in real estate | \u00a0 | \u00a0 | 2,234 | 2,234 |
Property in own use | \u00a0 | \u00a0 | 70 | 70 |
Non-financial assets | 0 | 0 | 2,304 | 2,304 |
2024 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Investments in real estate | \u00a0 | \u00a0 | 2,512 | 2,512 |
Property in own use | \u00a0 | \u00a0 | 91 | 91 |
Non-financial assets | 0 | 0 | 2,603 | 2,603 |
2025 | Real estate | Property | Total |
|---|---|---|---|
Level 3 non-financial assets \u2013 opening balance | 2,512 | 91 | 2,603 |
Amounts recognised in the profit and loss account during the year | 17 | -10 | 7 |
Purchase | 70 | 3 | 73 |
Revaluation recognised in equity during the year | \u00a0 | 9 | 9 |
Sale | -372 | -19 | -391 |
Changes in the composition of the group and other changes | 7 | -4 | 3 |
Level 3 non-financial assets \u2013 closing balance | 2,234 | 70 | 2,304 |
2024 | Real estate | Property | Total |
|---|---|---|---|
Level 3 non-financial assets \u2013 opening balance | 2,620 | 92 | 2,712 |
Amounts recognised in the profit and loss account during the year | -13 | \u00a0 | -13 |
Purchase | 114 | 3 | 117 |
Sale | -206 | -6 | -212 |
Changes in the composition of the group and other changes | -3 | 2 | -1 |
Level 3 non-financial assets \u2013 closing balance | 2,512 | 91 | 2,603 |
2025 | Held at balance sheet date | Derecognised during the year | Total |
|---|---|---|---|
Investments in real estate | 15 | 2 | 17 |
Property in own use | -8 | -2 | -10 |
Level 3 Amounts recognised in the profit and loss account during the year on non-financial assets | 7 | 0 | 7 |
2024 | Held at balance sheet date | Derecognised during the year | Total |
|---|---|---|---|
Investments in real estate | -11 | -2 | -13 |
Property in own use | -1 | 1 | 0 |
Level 3 Amounts recognised in the profit and loss account during the year on non-financial assets | -12 | -1 | -13 |
Key assumptions in the valuation of real estate include the estimated current rental value per square metre, the estimated future rental value per square metre (ERV), the net initial yield and the vacancy rate. These assumptions were in the following ranges:
2025 | \u00a0 | Fair value | Valuation | Current | ERV/m2 | Net initial | Vacancy % | Average lease term in years |
|---|---|---|---|---|---|---|---|---|
The Netherlands | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | Retail | 13 | DCF | 250 | 240 | 7.98 | \u00a0 | 11.00 |
| \u00a0 | Industrial | 208 | DCF | 59-213 | 77-221 | 3.94-4.98 | \u00a0 | 4.69 |
| \u00a0 | Office | 113 | DCF | 398 | 444 | 5.09 | 0.70 | 5.09 |
| \u00a0 | Residential | 271 | DCF | 261-326 | 286-355 | 3.55-4.05 | 3.98 | 11.00 |
| \u00a0 | Other | 3 | Residual Value | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Germany | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | Retail | 145 | DCF | 21-31 | 19-26 | 6.47-7.35 | 10.67 | 4.33 |
| \u00a0 | Industrial | 223 | DCF | 83-107 | 94-109 | 3.99-4.73 | 2.46 | 6.93 |
France | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | Industrial | 218 | DCF | 0-81 | 52-75 | 0-5.96 | 11.68 | 3.60 |
| \u00a0 | Residential | 38 | DCF | 347 | 347 | 5.28 | \u00a0 | 6.60 |
Spain | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | Retail | 271 | DCF | 234-288 | 234-273 | 6.27-8.00 | 5.39 | 4.02 |
Italy | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | Retail | 216 | DCF | 9-596 | 150-735 | 2.02-7.55 | 8.25 | 8.60 |
| \u00a0 | Industrial | 38 | DCF | 34 | 68 | N.A. | \u00a0 | 15.00 |
Belgium | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | Retail | 89 | DCF | 18-338 | 153-326 | 5.44-7.60 | \u00a0 | 5.70 |
| \u00a0 | Office | 14 | DCF | 134 | 220 | 4.32 | 36.52 | 6.30 |
| \u00a0 | Residential | 20 | DCF | 194 | 195 | 5.24 | \u00a0 | 23.30 |
Denmark | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | Industrial | 73 | DCF | 179-187 | 185-193 | 5.72-6.62 | \u00a0 | 7.60 |
Poland | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | Retail | 82 | Income approach | 172 | 178 | 9.05 | 3.30 | 2.40 |
Real estate under construction and other | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | The Netherlands, Ground positions | 2 | Residual approach | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | The Netherlands, IPUC | 109 | Residual approach | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total real estate | \u00a0 | 2,146 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Significant increases (decreases) in the estimated rental value and rent growth in isolation would result in a significantly higher (lower) fair value of the real estate investments. Significant increases (decreases) in the long-term vacancy rate and discount rate in isolation would result in a significantly lower (higher) fair value of the real estate investments.
During 2025, the number of transactions in relevant real estate markets has increased, resulting in lower uncertainties around the inputs to the valuations and, therefore, lower uncertainty in the fair value of real estate investments.
The following table presents the estimated fair value of NN\u2019s financial assets and liabilities. Certain balance sheet items are not included in the table, as they do not meet the definition of a financial asset or liability or are (re)insurance contracts. The aggregation of the fair value presented below does not represent and should not be construed as representing the underlying value of NN.
| \u00a0 | Estimated fair value | Balance sheet value | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 6,404 | 6,929 | 6,404 | 6,929 |
Investments at fair value through Other Comprehensive Income | 99,469 | 106,050 | 99,469 | 106,050 |
Investments at cost | 22,151 | 21,780 | 22,374 | 22,234 |
Investments at fair value through profit or loss | 56,570 | 54,968 | 56,570 | 54,968 |
Derivatives | 1,330 | 2,684 | 1,330 | 2,684 |
Financial assets | 185,924 | 192,411 | 186,147 | 192,865 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment contracts for risk of company | 1,099 | 1,176 | 1,116 | 1,201 |
Investment contracts for risk of policyholders | 2,873 | 2,658 | 2,873 | 2,658 |
Investment contracts | 3,972 | 3,834 | 3,989 | 3,859 |
Debt instruments issued | 1,123 | 1,109 | 1,197 | 1,196 |
Subordinated debt | 2,545 | 2,560 | 2,348 | 2,346 |
Other borrowed funds | 9,564 | 7,630 | 9,875 | 7,987 |
Customer deposits | 17,473 | 17,198 | 17,915 | 17,474 |
Derivatives | 4,360 | 3,671 | 4,360 | 3,671 |
Financial liabilities | 39,037 | 36,002 | 39,684 | 36,533 |
The estimated fair value represents the price at which an orderly transaction to sell the financial asset or to transfer the financial liability would take place between market participants at the balance sheet date (exit price).
The fair value of financial assets and liabilities is based on unadjusted quoted market prices at the balance sheet date where available. Such quoted market prices are primarily obtained from exchange prices for listed instruments. Where an exchange price is not available, market prices may be obtained from external market vendors, brokers or market makers. In general, positions are valued taking the bid price for a long position and the offer price for a short position and financial liabilities. In some cases, positions are marked at mid-market prices. When markets are less liquid there may be a range of prices for the same security from different price sources; selecting the most appropriate price requires judgement and could result in different estimates of the fair value.
For certain financial assets and liabilities quoted market prices are not available, for example for financial instruments that are not traded in an active market. An active market for the financial instrument is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Assessing whether a market is active requires judgement, considering factors specific to the financial instrument.
For these financial assets and liabilities, fair value is determined using valuation techniques, based on market conditions existing at each balance sheet date. These valuation techniques range from discounting of cash flows to valuation models, where relevant pricing factors including the market price of the underlying reference instruments, market parameters (volatilities, correlations and credit ratings) and customer behaviour are taken into account.
Valuation techniques are subjective in nature and significant judgement is involved in establishing the fair value for certain financial assets and liabilities. Valuation techniques involve various assumptions regarding pricing factors. The use of different valuation techniques and assumptions could produce significantly different estimates of the fair value.
The following methods and assumptions were used by NN to estimate the fair value of the financial instruments:
Cash and cash equivalents are recognised at their nominal value which approximates the fair value.
Derivative contracts can either be exchange-traded or over the counter (OTC). The fair value of exchange traded derivatives is determined using quoted market prices in an active market and those derivatives are classified in Level 1 of the fair value hierarchy. For those instruments that are not actively traded, the fair value is estimated based on valuation techniques. OTC derivatives and derivatives trading in an inactive market are valued using valuation techniques because quoted market prices in an active market are not available for such instruments. The valuation techniques and inputs depend on the type of derivative and the nature of the underlying instruments. The principal techniques used to value these instruments are based on discounted cash flows, Black-Scholes option models and Monte Carlo simulation. These valuation models calculate the present value of expected future cash flows, based on \u2018no arbitrage\u2019 principles. These models are commonly used in the financial industry. Inputs to valuation models are determined from observable market data where possible. Certain inputs may not be observable in the market directly but can be determined from observable prices via valuation model calibration procedures. The inputs used include prices available from exchanges, dealers, brokers or providers of pricing, yield curves, credit spreads, default rates, recovery rates, dividend rates, volatility of underlying interest rates, equity prices and foreign currency exchange rates. These inputs are determined with reference to quoted prices, recently executed trades, independent market quotes and consensus data, where available.
The fair value of publicly traded equity securities is determined using quoted market prices when available.
Where no quoted market prices are available, fair value is determined based on quoted prices for similar instruments or other valuation techniques. The fair value of private equity is based on quoted market prices, if available. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and revenue multiples and by reference to market valuations for similar entities quoted in an active market.
The fair value for debt securities is based on quoted market prices, where available. Quoted market prices may be obtained from an exchange, dealer, broker, industry group, pricing service or regulatory service. If quoted prices in an active market are not available, fair value is based on an analysis of available market inputs, which may include values obtained from one or more pricing services or by a valuation technique that discounts expected future cash flows using market interest rate curves, referenced credit spreads, maturity of the investment and estimated prepayment rates where applicable.
For loans and advances that are repriced frequently and have had no significant changes in credit risk, carrying values represent a reasonable estimate of fair value. The fair value of other loans is estimated by discounting expected future cash flows using a discount rate that reflects credit risk, liquidity and other current market conditions.
The fair value of mortgage loans is estimated by discounting the cash flows on a loan part-by-loan part basis taking into account the characteristics of the loans by applying a market discount rate. The valuation method takes into account the type of mortgage, remaining period until interest reset date, credit quality (NHG, LTV buckets), prepayment and product-specific characteristics.
Loans with similar characteristics are aggregated for calculation purposes.
For investment contracts for risk of the company the fair value has been estimated using a discounted cash flow approach based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. For investment contracts for risk of policyholders the fair value generally equals the fair value of the underlying assets.
The fair value of subordinated debt and debt instruments issued is estimated using discounted cash flows based on interest rates and credit spreads that apply to similar instruments.
The fair value of other borrowed funds is generally based on quoted market prices or, if not available, on estimated prices by discounting expected future cash flows using a current market interest rate and credit spreads applicable to the yield, credit quality and maturity.
The carrying values of customer deposits with no stated maturity approximate their fair value. The fair values of deposits with stated maturities have been estimated based on discounting future cash flows using a discount rate that reflects credit risk, liquidity and other current market conditions.
The fair value of the financial instruments carried at fair value was determined as follows:
2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivatives | 12 | 1,318 | \u00a0 | 1,330 |
Investments at fair value through OCI | 48,618 | 15,645 | 35,206 | 99,469 |
Investments at fair value through profit or loss | 47,601 | 1,061 | 7,908 | 56,570 |
Financial assets | 96,231 | 18,024 | 43,114 | 157,369 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment contracts (for contracts at fair value) | 2,872 | 1 | \u00a0 | 2,873 |
Derivatives | 19 | 4,319 | 22 | 4,360 |
Financial liabilities | 2,891 | 4,320 | 22 | 7,233 |
2024 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivatives | 65 | 2,619 | \u00a0 | 2,684 |
Investments at fair value through OCI | 48,451 | 20,639 | 36,960 | 106,050 |
Investments at fair value through profit or loss | 45,035 | 1,708 | 8,225 | 54,968 |
Financial assets | 93,551 | 24,966 | 45,185 | 163,702 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment contracts (for contracts at fair value) | 2,658 | \u00a0 | \u00a0 | 2,658 |
Derivatives | 3 | 3,644 | 24 | 3,671 |
Financial liabilities | 2,661 | 3,644 | 24 | 6,329 |
NN has categorised its financial instruments that are either measured in the balance sheet at fair value or for which the fair value is disclosed, into a three level hierarchy based on the priority of the inputs to the valuation. The fair value hierarchy gives the highest priority to (unadjusted) quoted prices in active markets for identical assets or liabilities and the lowest priority to valuation techniques supported by unobservable inputs. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide reliable pricing information on an ongoing basis.
The fair value hierarchy consists of three levels, depending on whether the fair value is determined based on (unadjusted) quoted prices in an active market (Level 1), valuation techniques with observable inputs (Level 2) or valuation techniques that incorporate inputs which are unobservable and which have a more than insignificant impact on the fair value of the instrument (Level 3). Financial assets in Level 3 include, for example, illiquid debt instruments, complex OTC and credit derivatives, certain complex loans (for which current market information about similar assets to use as observable, corroborated data for all significant inputs into a valuation model is not available), mortgage loans and consumer lending, private equity securities and investments in real estate funds.
Observable inputs reflect market data obtained from independent sources. Unobservable inputs are inputs which are based on NN\u2019s own assumptions about the factors that market participants would use in pricing an asset or liability, developed based on the best information available in the circumstances.
Unobservable inputs may include volatility, correlation, spreads to discount rates, default rates and recovery rates, prepayment rates and certain credit spreads. Transfers into and transfers out of levels in the fair value hierarchy are recognised on the date of the event or change of circumstances that caused the transfer.
This category includes financial instruments whose fair value is determined directly by reference to published quotes in an active market that NN can access. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions with sufficient frequency and volume to provide reliable pricing information on an ongoing basis.
This category includes financial instruments whose fair value is determined using a valuation technique (e.g. a model), where inputs in the model are taken from an active market or are observable. If certain inputs in the model are unobservable the instrument is still classified in this category, provided that the impact of those unobservable inputs elements on the overall valuation is insignificant. Included in this category are items whose value is derived from quoted prices of similar instruments, but for which the prices are modified based on other market observable external data and items whose value is derived from quoted prices but for which there was insufficient evidence of an active market.
This category includes financial instruments whose fair value is determined using a valuation technique (e.g. a model) for which more than an insignificant part of the inputs in terms of the overall valuation are not market observable. This category also includes financial assets and liabilities whose fair value is determined by reference to price quotes but for which the market is considered inactive. An instrument is classified in its entirety as Level 3 if a significant portion of the instrument\u2019s fair value is driven by unobservable inputs.
Unobservable in this context means that there is little or no current market data available from which the price at which an orderly transaction would likely occur can be derived.
2025 | Investments at fair value through Other Comprehensive Income | Investments at fair value through profit or loss | Total |
|---|---|---|---|
Level 3 Financial assets \u2013 opening balance | 36,960 | 8,225 | 45,185 |
Amounts recognised in the profit and loss account | -176 | -62 | -238 |
Revaluations recognised in Other Comprehensive Income (equity) | -213 | \u00a0 | -213 |
Purchase | 2,444 | 409 | 2,853 |
Sale | -659 | -554 | -1,213 |
Maturity/settlement | -3,111 | -24 | -3,135 |
Transfers out of Level 3 | -12 | \u00a0 | -12 |
Transfers into Level 3 | \u00a0 | 27 | 27 |
Foreign currency exchange differences | -27 | -113 | -140 |
Level 3 Financial assets \u2013 closing balance | 35,206 | 7,908 | 43,114 |
2024 | Investments at fair value through Other Comprehensive Income | Investments at fair value through profit or loss | Total |
|---|---|---|---|
Level 3 Financial assets \u2013 opening balance | 39,479 | 7,547 | 47,026 |
Amounts recognised in the profit and loss account | -545 | 148 | -397 |
Revaluations recognised in Other Comprehensive Income (equity) | 1,700 | \u00a0 | 1,700 |
Purchase | 2,086 | 1,079 | 3,165 |
Sale | -101 | -534 | -635 |
Maturity/settlement | -5,385 | -24 | -5,409 |
Other transfers and reclassifications | \u00a0 | -48 | -48 |
Transfers out of Level 3 | -334 | \u00a0 | -334 |
Transfers into Level 3 | 16 | \u00a0 | 16 |
Changes in the composition of the group and other changes | 25 | \u00a0 | 25 |
Foreign currency exchange differences | 19 | 57 | 76 |
Level 3 Financial assets \u2013 closing balance | 36,960 | 8,225 | 45,185 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Level 3 Financial liabilities \u2013 opening balance | 24 | 20 |
Amounts recognised in the profit and loss account | -2 | 4 |
Level 3 Financial liabilities \u2013 closing balance | 22 | 24 |
2025 | Held at balance sheet date | Derecognised during the year | Total |
|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 |
Investments at fair value through Other Comprehensive Income | -101 | -75 | -176 |
Investments at fair value through profit or loss | -64 | 2 | -62 |
Financial assets | -165 | -73 | -238 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 |
Derivatives | -2 | \u00a0 | -2 |
Financial liabilities | -2 | 0 | -2 |
2024 | Held at balance sheet date | Derecognised during the year | Total |
|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 |
Investments at fair value through Other Comprehensive Income | -80 | -465 | -545 |
Investments at fair value through profit or loss | 147 | 1 | 148 |
Financial assets | 67 | -464 | -397 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 |
Derivatives | 4 | \u00a0 | 4 |
Financial liabilities | 4 | 0 | 4 |
Financial assets measured at fair value in the balance sheet as at 31 December 2025 of EUR 157,369 million (2024: EUR 163,702 million) include an amount of EUR 43,114 million ( 27 %) that is classified as Level 3 (2024: EUR 45,185 million ( 28 %)). Changes in Level 3 are disclosed above in the table \u2018Level 3 Financial assets\u2019.
Financial assets in Level 3 include both assets for which the fair value was determined using valuation techniques that incorporate unobservable inputs and assets for which the fair value was determined using quoted prices, but for which the market was not actively trading at or around the balance sheet date.
Unobservable inputs are inputs which are based on NN\u2019s own assumptions about the factors that market participants would use in pricing an asset, developed based on the best information available in the circumstances. Unobservable inputs may include volatility, correlation, spreads to discount rates, default rates and recovery rates, prepayment rates and certain credit spreads. Fair values that are determined using valuation techniques using unobservable inputs are sensitive to the inputs used. Fair values that are determined using quoted prices are not sensitive to unobservable inputs, as the valuation is based on unadjusted external price quotes. These are classified in Level 3 as a result of the illiquidity in the relevant market but are not significantly sensitive to NN\u2019s own unobservable inputs.
Unrealised gains and losses that relate to \u2018Level 3 Financial assets\u2019 are included in the profit and loss account as follows:
Those relating to Investments for risk of policyholders and other investments at fair value through profit or loss are included in \u2018Gains (losses) on Investments at fair value through profit or loss\u2019.
Those relating to derivatives are included in \u2018Result on derivatives and hedging\u2019.
The investments at fair value through Other Comprehensive Income classified as \u2018Level 3 Financial assets\u2019 amounted EUR 35,206 million as at 31 December 2025 (2024: EUR 36,960 million). Of these investments, EUR 413 million (2024: EUR 415 million) relates to investments in debt instruments and shares in funds of which the fair value is determined using (unadjusted) quoted prices or prices obtained from external asset managers, but for which there is no active market. EUR 34,793 million (2024: EUR 36,545 million) relates to investments in (mortgage) loans of which the fair value is determined using a discounted cash flow method; the most important drivers of the valuation (interest rate and valuation spread) are derived from observable market inputs; however, certain inputs, such as the prepayment and default assumptions, are not directly observable. A 10% change in valuation of these investments would increase or reduce shareholders\u2019 equity by EUR 3,521 million (2024: EUR 3,696 million), being approximately 18% (before tax) (2024: 19% (before tax)), of shareholders\u2019 equity.
Investments for risk of policyholders classified as \u2018Level 3 Financial assets\u2019 amounted EUR 2,216 million as at 31 December 2025 (2024: EUR 2,279 million). Net result is unaffected when reasonable possible alternative assumptions would have been used in measuring these investments.
The total amount of financial liabilities classified as Level 3 at 31 December 2025 of EUR 22 million (2024: EUR 24 million) relates to derivative positions. EUR 21 million (2024: EUR 23 million) relates to longevity hedges closed by NN. It is estimated that a 5% increase in mortality assumptions for these longevity hedges reduces result and equity before tax by EUR 3 million (2024: EUR 4million) and a 5% decrease in mortality assumptions increases result and equity before tax by EUR 9 million (2024: EUR 10million).
Financial assets and liabilities at cost The fair value of the financial instruments carried at cost in the balance sheet (where fair value is disclosed) was determined as follows:
2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 6,404 | \u00a0 | \u00a0 | 6,404 |
Investments at cost | \u00a0 | 7 | 22,144 | 22,151 |
Financial assets | 6,404 | 7 | 22,144 | 28,555 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Subordinated debt | 2,545 | \u00a0 | \u00a0 | 2,545 |
Debt instruments issued | 1,123 | \u00a0 | \u00a0 | 1,123 |
Other borrowed funds | 5,530 | 4,033 | 1 | 9,564 |
Investment contracts for risk of company | 317 | \u00a0 | 782 | 1,099 |
Customer deposits | 8,655 | 8,818 | \u00a0 | 17,473 |
Financial liabilities | 18,170 | 12,851 | 783 | 31,804 |
2024 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 6,929 | \u00a0 | \u00a0 | 6,929 |
Investments at cost | \u00a0 | \u00a0 | 21,780 | 21,780 |
Financial assets | 6,929 | 0 | 21,780 | 28,709 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Subordinated debt | 2,560 | \u00a0 | \u00a0 | 2,560 |
Debt instruments issued | 1,109 | \u00a0 | \u00a0 | 1,109 |
Other borrowed funds | 5,751 | 1,879 | \u00a0 | 7,630 |
Investment contracts for risk of company | 307 | \u00a0 | 869 | 1,176 |
Customer deposits | 9,091 | 8,107 | \u00a0 | 17,198 |
Financial liabilities | 18,818 | 9,986 | 869 | 29,673 |
The estimated fair value represents the price at which an orderly transaction to sell the financial asset or to transfer the financial liability would take place between market participants at the balance sheet date (exit price).
The fair value of financial assets and liabilities is based on unadjusted quoted market prices at the balance sheet date where available. Such quoted market prices are primarily obtained from exchange prices for listed instruments. Where an exchange price is not available, market prices may be obtained from external market vendors, brokers or market makers. In general, positions are valued taking the bid price for a long position and the offer price for a short position and financial liabilities. In some cases, positions are marked at mid-market prices. When markets are less liquid there may be a range of prices for the same security from different price sources; selecting the most appropriate price requires judgement and could result in different estimates of the fair value.
For certain financial assets and liabilities quoted market prices are not available, for example for financial instruments that are not traded in an active market. An active market for the financial instrument is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Assessing whether a market is active requires judgement, considering factors specific to the financial instrument.
For these financial assets and liabilities, fair value is determined using valuation techniques, based on market conditions existing at each balance sheet date. These valuation techniques range from discounting of cash flows to valuation models, where relevant pricing factors including the market price of the underlying reference instruments, market parameters (volatilities, correlations and credit ratings) and customer behaviour are taken into account.
Valuation techniques are subjective in nature and significant judgement is involved in establishing the fair value for certain financial assets and liabilities. Valuation techniques involve various assumptions regarding pricing factors. The use of different valuation techniques and assumptions could produce significantly different estimates of the fair value.
The following methods and assumptions were used by NN to estimate the fair value of the financial instruments:
Cash and cash equivalents are recognised at their nominal value which approximates the fair value.
Derivative contracts can either be exchange-traded or over the counter (OTC). The fair value of exchange traded derivatives is determined using quoted market prices in an active market and those derivatives are classified in Level 1 of the fair value hierarchy. For those instruments that are not actively traded, the fair value is estimated based on valuation techniques. OTC derivatives and derivatives trading in an inactive market are valued using valuation techniques because quoted market prices in an active market are not available for such instruments. The valuation techniques and inputs depend on the type of derivative and the nature of the underlying instruments. The principal techniques used to value these instruments are based on discounted cash flows, Black-Scholes option models and Monte Carlo simulation. These valuation models calculate the present value of expected future cash flows, based on \u2018no arbitrage\u2019 principles. These models are commonly used in the financial industry. Inputs to valuation models are determined from observable market data where possible. Certain inputs may not be observable in the market directly but can be determined from observable prices via valuation model calibration procedures. The inputs used include prices available from exchanges, dealers, brokers or providers of pricing, yield curves, credit spreads, default rates, recovery rates, dividend rates, volatility of underlying interest rates, equity prices and foreign currency exchange rates. These inputs are determined with reference to quoted prices, recently executed trades, independent market quotes and consensus data, where available.
The fair value of publicly traded equity securities is determined using quoted market prices when available.
Where no quoted market prices are available, fair value is determined based on quoted prices for similar instruments or other valuation techniques. The fair value of private equity is based on quoted market prices, if available. In the absence of quoted prices in an active market, fair value is estimated on the basis of an analysis of the investee\u2019s financial position and results, risk profile, prospects, price, earnings comparisons and revenue multiples and by reference to market valuations for similar entities quoted in an active market.
The fair value for debt securities is based on quoted market prices, where available. Quoted market prices may be obtained from an exchange, dealer, broker, industry group, pricing service or regulatory service. If quoted prices in an active market are not available, fair value is based on an analysis of available market inputs, which may include values obtained from one or more pricing services or by a valuation technique that discounts expected future cash flows using market interest rate curves, referenced credit spreads, maturity of the investment and estimated prepayment rates where applicable.
For loans and advances that are repriced frequently and have had no significant changes in credit risk, carrying values represent a reasonable estimate of fair value. The fair value of other loans is estimated by discounting expected future cash flows using a discount rate that reflects credit risk, liquidity and other current market conditions.
For investment contracts for risk of the company the fair value has been estimated using a discounted cash flow approach based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. For investment contracts for risk of policyholders the fair value generally equals the fair value of the underlying assets.
The fair value of subordinated debt and debt instruments issued is estimated using discounted cash flows based on interest rates and credit spreads that apply to similar instruments.
The fair value of other borrowed funds is generally based on quoted market prices or, if not available, on estimated prices by discounting expected future cash flows using a current market interest rate and credit spreads applicable to the yield, credit quality and maturity.
The carrying values of customer deposits with no stated maturity approximate their fair value. The fair values of deposits with stated maturities have been estimated based on discounting future cash flows using a discount rate that reflects credit risk, liquidity and other current market conditions.
NN has categorised its financial instruments that are either measured in the balance sheet at fair value or for which the fair value is disclosed, into a three level hierarchy based on the priority of the inputs to the valuation. The fair value hierarchy gives the highest priority to (unadjusted) quoted prices in active markets for identical assets or liabilities and the lowest priority to valuation techniques supported by unobservable inputs. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide reliable pricing information on an ongoing basis.
The fair value hierarchy consists of three levels, depending on whether the fair value is determined based on (unadjusted) quoted prices in an active market (Level 1), valuation techniques with observable inputs (Level 2) or valuation techniques that incorporate inputs which are unobservable and which have a more than insignificant impact on the fair value of the instrument (Level 3). Financial assets in Level 3 include, for example, illiquid debt instruments, complex OTC and credit derivatives, certain complex loans (for which current market information about similar assets to use as observable, corroborated data for all significant inputs into a valuation model is not available), mortgage loans and consumer lending, private equity securities and investments in real estate funds.
Observable inputs reflect market data obtained from independent sources. Unobservable inputs are inputs which are based on NN\u2019s own assumptions about the factors that market participants would use in pricing an asset or liability, developed based on the best information available in the circumstances.
Unobservable inputs may include volatility, correlation, spreads to discount rates, default rates and recovery rates, prepayment rates and certain credit spreads. Transfers into and transfers out of levels in the fair value hierarchy are recognised on the date of the event or change of circumstances that caused the transfer.
This category includes financial instruments whose fair value is determined directly by reference to published quotes in an active market that NN can access. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions with sufficient frequency and volume to provide reliable pricing information on an ongoing basis.
This category includes financial instruments whose fair value is determined using a valuation technique (e.g. a model), where inputs in the model are taken from an active market or are observable. If certain inputs in the model are unobservable the instrument is still classified in this category, provided that the impact of those unobservable inputs elements on the overall valuation is insignificant. Included in this category are items whose value is derived from quoted prices of similar instruments, but for which the prices are modified based on other market observable external data and items whose value is derived from quoted prices but for which there was insufficient evidence of an active market.
This category includes financial instruments whose fair value is determined using a valuation technique (e.g. a model) for which more than an insignificant part of the inputs in terms of the overall valuation are not market observable. This category also includes financial assets and liabilities whose fair value is determined by reference to price quotes but for which the market is considered inactive. An instrument is classified in its entirety as Level 3 if a significant portion of the instrument\u2019s fair value is driven by unobservable inputs.
Unobservable in this context means that there is little or no current market data available from which the price at which an orderly transaction would likely occur can be derived.
NN uses derivatives for effective portfolio management and the management of its asset and liability portfolios. The objective of economic hedging is to enter into positions with an opposite risk profile to an identified exposure to reduce that exposure.
For hedge accounting NN continues to apply the IAS 39 hedge accounting requirements. The accounting treatment of hedge transactions varies according to the nature of the instrument hedged and whether the hedge qualifies under the IFRS-EU hedge accounting rules. Derivatives that qualify for hedge accounting under IFRS-EU are classified and reported in accordance with the nature of the hedged item hedged and the type of IFRS-EU hedge model that is applicable. The three models applicable under IFRS-EU are: cash flow hedge accounting, fair value hedge accounting and net investment hedge accounting.
To qualify for hedge accounting under IFRS-EU, strict criteria must be met. Certain hedges that are economically effective from a risk management perspective do not qualify for hedge accounting under IFRS-EU. The fair value changes of derivatives relating to such non-qualifying hedges are taken to the profit and loss account. However, in certain cases, NN mitigates the profit or loss volatility by designating hedged assets and liabilities at fair value through profit or loss. If hedge accounting is applied under IFRSEU, it is possible that during the hedge a hedge relationship no longer qualifies for hedge accounting and hedge accounting cannot be continued, even if the hedge remains economically effective. As a result, the volatility arising from undertaking economic hedging in the profit and loss account may be higher than would be expected from an economic point of view.
At the inception of the hedge transaction NN documents the relationship between hedging instruments and hedged items, its risk management objectives, together with the methods selected to assess hedge effectiveness. In addition, NN documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flows of the hedged items.
With respect to exchange rate and interest rate derivative contracts, the notional or contractual amount of these instruments is indicative of the nominal value of transactions outstanding at the balance sheet date; however they do not represent amounts at risk.
In 2017, NN entered into a longevity hedge, based on a general index of Dutch mortality. The maximum pay-out of the hedge amounts to EUR 100 million, payable after twenty years. The hedge is financed by annual premium payments to the counterparty. The longevity hedge is accounted for as derivative. The hedge reduces the impact of longevity trend scenarios implying more improvement in life expectancy. The regulator gave approval to include the effects of this specific hedge on the SCR. The purpose of the hedge is to reduce the longevity risk.
NN\u2019s hedge accounting consists mainly of cash flow hedge accounting. NN\u2019s cash flow hedges principally consist of (forward) interest rate swaps and cross-currency interest rate swaps that are used to protect against its exposure to variability in future interest cash flows on assets and liabilities that bear interest at variable rates or are expected to be refunded or reinvested in the future. The amounts and timing of future cash flows, representing both principal and interest flows, are projected for each portfolio of financial assets and liabilities, based on contractual terms and other relevant factors including estimates of prepayments and defaults.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised in Other Comprehensive Income (equity) in \u2018Cash flow hedge reserve\u2019. Interest income and expenses on these derivatives are recognised in the profit and loss account consistent with the manner in which the forecast cash flows affect Net result. The gain or loss relating to the ineffective portion is recognised immediately in the profit and loss account. Amounts accumulated in equity are recycled to the profit and loss account in the periods in which the hedged item affects Net result. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the profit and loss account. When a forecast transaction is no longer expected to occur, the cumulative gain or loss previously reported in equity is transferred immediately to the profit and loss account.
For the year ended 31 December 2025, NN recognised EUR -2,040 million (2024: EUR 44 million) in equity as effective fair value changes on derivatives under cash flow hedge accounting. The balance of the cash flow hedge reserve in equity as at 31 December 2025 is EUR 1,150 million (2024: EUR 3,893 million) gross and EUR 846 million (2024: EUR 2,886 million) after deferred tax. This cash flow hedge reserve will fluctuate with the fair value of the underlying derivatives and will be reflected in the profit and loss account under Interest income/expenses over the remaining term of the underlying hedged items. The cash flow hedge reserve relates to a large number of derivatives and hedged items with varying maturities up to 45 years with the largest concentrations in the range 1 year to 3 years. Accounting ineffectiveness on derivatives designated under cash flow hedge accounting resulted in EUR -2 million gain/loss (2024: EUR1 million gain) which was recognised in the profit and loss account.
As at 31 December 2025, the fair value of outstanding derivatives designated under cash flow hedge accounting was EUR -2,470 million (2024: EUR -832 million), presented in the balance sheet as EUR 94 million (2024: EUR 631 million) positive fair value under assets and EUR 2,564 million (2024: EUR 1,463 million) negative fair value under liabilities. The notional or contractual amount of these instruments amount to EUR 18,558 million.
As at 31 December 2025, there were nil (2024: nil), non-derivatives designated as hedging instruments for cash flow hedge accounting purposes. Included in \u2018Interest income and Interest expenses on non-trading derivatives\u2019 is EUR 119 million (2024: EUR 129 million) and EUR 147 million (2024: EUR 181 million), respectively, relating to derivatives used in cash flow hedges.
NN\u2019s fair value hedges principally consist of interest rate swaps and cross-currency interest rate swaps that are used to protect against changes in the fair value of fixed-rate instruments due to movements in market interest rates.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the profit and loss account, together with the effective portion of the fair value adjustments to the hedged item attributable to the hedged risk. As a result, only the net accounting ineffectiveness has an impact on the net result. If the hedge relationship no longer meets the criteria for hedge accounting, the cumulative adjustment of the hedged item is, in the case of interest-bearing instruments, amortised through the profit and loss account over the remaining term of the original hedge or recognised directly when the hedged item is derecognised. For non-interest-bearing instruments, the cumulative adjustment of the hedged item is recognised in the profit and loss account only when the hedged item is derecognised.
For the year ended 31 December 2025, NN recognised EUR 272 million (2024: EUR-115 million) of fair value changes on derivatives designated under fair value hedge accounting in the profit and loss account. This amount was offset by EUR -282 million (2024: EUR 82 million) fair value changes recognised on hedged items. This resulted in EUR -10 million gain/loss (2024: EUR -33 million loss) net accounting ineffectiveness recognised in the profit and loss account.
As at 31 December 2025, the fair value of outstanding derivatives designated under fair value hedge accounting was EUR 6 million (2024: EUR 3 million), presented in the balance sheet as EUR 6 million (2024: EUR 4 million) positive fair value under assets and EUR 0 million (2023: EUR 1 million) negative fair value under liabilities. The notional or contractual amount of these instruments amount to EUR 7,550 million.
NN applies fair value hedge accounting for portfolio hedges of interest rate risk (macro hedging) under the EU \u2018carve out\u2019 of IFRS-EU. The EU \u2018carve-out\u2019 for macro hedging enables a group of derivatives (or proportions) to be viewed in combination and jointly designated as the hedging instrument and removes some of the limitations in fair value hedge accounting relating to hedging core deposits and under hedging strategies. Under the IFRS-EU \u2018carve-out\u2019, hedge accounting may be applied to core deposits and ineffectiveness only arises when the revised estimate of the amount of cash flows in scheduled time buckets falls below the designated amount of that bucket. NN applies the IFRS-EU \u2018carve-out\u2019 to hedge the interest rate risk of mortgage loans. The hedging activities are designated under a portfolio fair value hedge on the mortgages, under IFRS-EU.
Hedges of net investments in foreign operations are accounted for in a similar way to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in Other Comprehensive Income (equity) and the gain or loss relating to the ineffective portion is recognised immediately in the profit and loss account. Gains and losses in equity are included in the profit and loss account when the foreign operation is disposed.
Amounts presented in these tables by contractual maturity are the amounts as presented in the balance sheet.
2025 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Adjustment | Total |
|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | 6,404 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 6,404 |
Investments at fair value through OCI | 7,237 | 4,501 | 4,237 | 5,013 | 4,133 | 15,200 | 56,814 | 2,334 | \u00a0 | 99,469 |
Investments at cost | 579 | 277 | 448 | 498 | 487 | 2,921 | 17,164 | \u00a0 | \u00a0 | 22,374 |
Investments at fair value through profit or loss1 | 863 | 80 | 105 | 54 | 54 | 74 | 51 | 55,289 | \u00a0 | 56,570 |
Investments in real estate | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,234 | \u00a0 | 2,234 |
Investments in associates and joint ventures | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 8,074 | \u00a0 | 8,074 |
Derivatives | 77 | 12 | 21 | 32 | 15 | 122 | 1,051 | \u00a0 | \u00a0 | 1,330 |
Insurance contracts | 82 | 67 | 55 | 45 | 38 | 140 | 140 | \u00a0 | -87 | 480 |
Reinsurance contracts | 13 | 102 | 119 | 76 | 95 | 90 | -316 | \u00a0 | 373 | 552 |
Property and equipment | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 313 | \u00a0 | 313 |
Intangible assets | 56 | 47 | 49 | 25 | 34 | 85 | 12 | 881 | \u00a0 | 1,189 |
Deferred tax assets | 8 | 101 | 19 | 6 | 4 | 9 | 32 | 22 | \u00a0 | 201 |
Other assets | 5,346 | -192 | 32 | 38 | 28 | 304 | 148 | 18 | \u00a0 | 5,722 |
Total assets | 20,665 | 4,995 | 5,085 | 5,787 | 4,888 | 18,945 | 75,096 | 69,165 | 286 | 204,912 |
2024 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Adjustment | Total |
|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | 6,929 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 6,929 |
Investments at fair value through OCI | 6,610 | 5,015 | 4,436 | 4,874 | 5,001 | 15,239 | 62,082 | 2,793 | \u00a0 | 106,050 |
Investments at cost | 447 | 294 | 401 | 425 | 469 | 3,113 | 17,085 | \u00a0 | \u00a0 | 22,234 |
Investments at fair value through profit or loss1 | 868 | 66 | 69 | 80 | 24 | 81 | 62 | 53,718 | \u00a0 | 54,968 |
Investments in real estate | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2,512 | \u00a0 | 2,512 |
Investments in associates and joint ventures | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 7,036 | \u00a0 | 7,036 |
Derivatives | 138 | 14 | 38 | 21 | 12 | 90 | 2,371 | \u00a0 | \u00a0 | 2,684 |
Insurance contracts | 36 | 66 | 58 | 49 | 22 | 104 | 207 | \u00a0 | -133 | 409 |
Reinsurance contracts | 66 | 67 | 78 | 116 | 62 | 92 | 16 | \u00a0 | 183 | 680 |
Property and equipment | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 302 | \u00a0 | 302 |
Intangible assets | 61 | 51 | 43 | 38 | 39 | 90 | 23 | 884 | \u00a0 | 1,229 |
Deferred tax assets | 5 | 5 | 5 | 5 | 9 | 21 | 18 | 26 | \u00a0 | 94 |
Other assets | 4,533 | 93 | 25 | 28 | 37 | 328 | 180 | 24 | \u00a0 | 5,248 |
Total assets | 19,693 | 5,671 | 5,153 | 5,636 | 5,675 | 19,158 | 82,044 | 67,295 | 50 | 210,375 |
The tables below include all liabilities by maturity based on contractual, undiscounted cash flows.
Furthermore, the undiscounted future coupon interest on financial liabilities payable is included in a separate line and in the relevant maturity bucket. Derivative liabilities are included on a net basis if cash flows are settled net. For other derivative liabilities the contractual gross cash flow payable is included.
Reference is made to the Liquidity Risk paragraph in Note 48 Risk management for a description on how liquidity risk is managed.
2025 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Adjustment1 | Total |
|---|---|---|---|---|---|---|---|---|---|---|
Insurance contracts | 11,802 | 10,401 | 10,507 | 10,123 | 9,595 | 41,417 | 106,654 | \u00a0 | -59,559 | 140,940 |
Investment contracts | 62 | 66 | 64 | 62 | 59 | 276 | 211 | 3,189 | \u00a0 | 3,989 |
Reinsurance contracts | 4 | 2 | 2 | 3 | 3 | 18 | 132 | \u00a0 | -95 | 69 |
Debt instruments issued | \u00a0 | 600 | \u00a0 | \u00a0 | \u00a0 | 600 | \u00a0 | \u00a0 | -3 | 1,197 |
Subordinated debt2 | \u00a0 | \u00a0 | 850 | \u00a0 | \u00a0 | 1,500 | \u00a0 | \u00a0 | -2 | 2,348 |
Other borrowed funds | 4,729 | 801 | 1,005 | 499 | 456 | 1,664 | 721 | \u00a0 | \u00a0 | 9,875 |
Customer deposits | 11,054 | 1,333 | 832 | 743 | 655 | 2,045 | 1,253 | \u00a0 | \u00a0 | 17,915 |
Derivatives | 271 | 241 | 348 | 382 | 558 | 1,911 | 7,018 | \u00a0 | -6,369 | 4,360 |
Deferred tax liabilities | 119 | -21 | 62 | 8 | 53 | -15 | -757 | 1,167 | \u00a0 | 616 |
Other liabilities | 2,106 | -112 | 88 | 41 | 17 | 109 | 97 | 102 | \u00a0 | 2,448 |
Total liabilities | 30,147 | 13,311 | 13,758 | 11,861 | 11,396 | 49,525 | 115,329 | 4,458 | -66,028 | 183,757 |
Coupon interest due on financial liabilities | 339 | 403 | 342 | 314 | 293 | 1,065 | 1,297 | \u00a0 | \u00a0 | 4,053 |
2024 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Adjustment1 | Total |
|---|---|---|---|---|---|---|---|---|---|---|
Insurance contracts | 11,676 | 11,553 | 9,877 | 11,163 | 8,852 | 35,885 | 129,233 | \u00a0 | -70,698 | 147,541 |
Investment contracts | 77 | 69 | 67 | 64 | 63 | 292 | 263 | 2,964 | \u00a0 | 3,859 |
Reinsurance contracts | 10 | 4 | 3 | 3 | 4 | 19 | 115 | \u00a0 | -46 | 112 |
Debt instruments issued | \u00a0 | \u00a0 | 600 | \u00a0 | \u00a0 | 600 | \u00a0 | \u00a0 | -4 | 1,196 |
Subordinated debt2 | \u00a0 | \u00a0 | \u00a0 | 850 | \u00a0 | 1,500 | \u00a0 | \u00a0 | -4 | 2,346 |
Other borrowed funds | 2,799 | 790 | 798 | 987 | 493 | 940 | 1,180 | \u00a0 | \u00a0 | 7,987 |
Customer deposits | 11,010 | 1,214 | 863 | 603 | 562 | 1,921 | 1,301 | \u00a0 | \u00a0 | 17,474 |
Derivatives | 527 | 461 | 584 | 625 | 727 | 2,302 | 7,228 | \u00a0 | -8,783 | 3,671 |
Deferred tax liabilities | 191 | 11 | 24 | 39 | 20 | 41 | -648 | 1,086 | \u00a0 | 764 |
Other liabilities | 2,973 | 466 | 52 | 36 | 29 | 92 | 60 | 65 | \u00a0 | 3,773 |
Total liabilities | 29,263 | 14,568 | 12,868 | 14,370 | 10,750 | 43,592 | 138,732 | 4,115 | -79,535 | 188,723 |
Coupon interest due on financial liabilities | 211 | 356 | 337 | 286 | 260 | 1,037 | 1,433 | \u00a0 | \u00a0 | 3,920 |
The table below provides the expected maturity of the cash flows, risk adjustment and Contractual Service Margin remaining at the end of the reporting period. The maturity is based on contractual, undiscounted cash flows.
2025 | Estimates of the present value of future cash flows | Risk adjustment | Contractual service margin | Total General Model and Variable Fee Approach | Total Premium Allocation Approach | Total Insurance assets | Total Insurance liabilities |
|---|---|---|---|---|---|---|---|
Less than 1 year | 9,561 | 134 | 893 | 10,588 | 1,132 | 82 | 11,802 |
1-2 years | 9,037 | 115 | 760 | 9,912 | 422 | 67 | 10,401 |
2-3 years | 9,348 | 106 | 681 | 10,135 | 317 | 55 | 10,507 |
3-4 years | 9,121 | 99 | 619 | 9,839 | 239 | 45 | 10,123 |
4-5 years | 8,720 | 93 | 561 | 9,374 | 183 | 38 | 9,595 |
5-10 years | 38,452 | 381 | 2,023 | 40,856 | 421 | 140 | 41,417 |
Over 10 years | 102,320 | 692 | 3,311 | 106,323 | 191 | 140 | 106,654 |
Adjustments1 | -58,848 | -415 | \u00a0 | -59,263 | -209 | -87 | -59,559 |
Total | 127,711 | 1,205 | 8,848 | 137,764 | 2,696 | 480 | 140,940 |
2024 | Estimates of the present value of future cash flows | Risk adjustment | Contractual service margin | Total General Model and Variable Fee Approach | Total Premium Allocation Approach | Total Insurance assets | Total Insurance liabilities |
|---|---|---|---|---|---|---|---|
Less than 1 year | 9,660 | 174 | 687 | 10,521 | 1,119 | 36 | 11,676 |
1-2 years | 10,334 | 140 | 590 | 11,064 | 423 | 66 | 11,553 |
2-3 years | 8,864 | 110 | 529 | 9,503 | 316 | 58 | 9,877 |
3-4 years | 10,280 | 118 | 479 | 10,877 | 237 | 49 | 11,163 |
4-5 years | 8,085 | 124 | 440 | 8,649 | 181 | 22 | 8,852 |
5-10 years | 33,289 | 458 | 1,627 | 35,374 | 407 | 104 | 35,885 |
Over 10 years | 124,382 | 857 | 3,598 | 128,837 | 189 | 207 | 129,233 |
Adjustments1 | -69,563 | -692 | \u00a0 | -70,255 | -310 | -133 | -70,698 |
Total | 135,331 | 1,289 | 7,950 | 144,570 | 2,562 | 409 | 147,541 |
Amounts payable on demand were EUR 53,871 million as at 31 December 2025 (EUR 56,328 million as at 31 December 2024).
The assets not freely disposable of EUR 83 million (2024: EUR 77 million) relates to the mandatory reserve deposit at De Nederlandsche Bank and cash balances held at BNG Bank.
Assets relating to instruments lending are disclosed in Note 38 Transferred but not derecognised financial assets. Assets in securitisation programmes originated by NN Bank are disclosed in Note 43 Structured entities.
The majority of NN\u2019s financial assets that have been transferred, but do not qualify for derecognition, are debt instruments used in securities lending. NN retains substantially all risks and rewards of those transferred assets. The assets are transferred in return for cash collateral or other financial assets. Non-cash collateral is not recognised in the balance sheet. Cash collateral is recognised as an asset and an offsetting liability is established for the same amount as NN is obligated to return this amount upon termination of the lending arrangement.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Investments at fair value through Other Comprehensive Income | 8,836 | 8,720 |
Investments at fair value through profit or loss | 2 | \u00a0 |
The table above does not include assets transferred to consolidated securitisation entities, as these related assets are not transferred from a consolidated perspective. Reference is made to Note 43 Structured entities.
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when NN has a current legally enforceable right to set off the recognised amounts and intends to either settle on a net basis or to realise the asset and settle the liability at the same time.
The following tables include information about rights to offset and the related arrangements. The amounts included consist of all recognised financial instruments that are presented net in the balance sheet under the IFRS-EU offsetting requirements (legal right to offset and intention to settle on a net basis) and amounts presented gross in the balance sheet but subject to enforceable master netting arrangements or similar arrangement.
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Related amounts not offset in the balance sheet | \u00a0 | |
|---|---|---|---|---|---|---|---|
Balance sheet line item, 2025 | Financial instrument | Gross financial assets | Gross financial liabilities offset in the balance sheet | Net financial assets in the balance sheet | Financial instruments | Cash and financial instruments collateral | Net amount |
Derivatives | Derivatives | 1,330 | \u00a0 | 1,330 | -1,133 | -197 | 0 |
Other items where offsetting is applied in the balance sheet | Other assets | 303 | \u00a0 | 303 | -163 | -140 | 0 |
Total financial assets | \u00a0 | 1,633 | 0 | 1,633 | -1,296 | -337 | 0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Related amounts not offset in the balance sheet | \u00a0 | |
|---|---|---|---|---|---|---|---|
Balance sheet line item, 2024 | Financial instrument | Gross financial assets | Gross financial liabilities offset in the balance sheet | Net financial assets in the balance sheet | Financial instruments | Cash and financial instruments collateral | Net amount |
Derivatives | Derivatives | 2,684 | \u00a0 | 2,684 | -1,257 | -1,386 | 41 |
Other items where offsetting is applied in the balance sheet | Other assets | 439 | \u00a0 | 439 | -349 | -86 | 4 |
Total financial assets | \u00a0 | 3,123 | 0 | 3,123 | -1,606 | -1,472 | 45 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Related amounts not offset in the balance sheet | \u00a0 | |
|---|---|---|---|---|---|---|---|
Balance sheet line item, 2025 | Financial instrument | Gross financial liabilities | Gross financial assets offset in the balance sheet | Net financial liabilities in the balance sheet | Financial instruments | Cash and financial instruments collateral | Net amount |
Derivatives | Derivatives | 4,214 | \u00a0 | 4,214 | -1,133 | -3,073 | 8 |
Repo's and Other items where offsetting is applied in the balance sheet | \u00a0 | 3,483 | \u00a0 | 3,483 | -163 | -3,317 | 3 |
Total financial liabilities | \u00a0 | 7,697 | 0 | 7,697 | -1,296 | -6,390 | 11 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | Related amounts not offset in the balance sheet | \u00a0 | |
|---|---|---|---|---|---|---|---|
Balance sheet line item, 2024 | Financial instrument | Gross financial liabilities | Gross financial assets offset in the balance sheet | Net financial liabilities in the balance sheet | Financial instruments | Cash and financial instruments collateral | Net amount |
Derivatives | Derivatives | 3,518 | \u00a0 | 3,518 | -1,257 | -2,211 | 50 |
Repo's and Other items where offsetting is applied in the balance sheet | \u00a0 | 1,686 | \u00a0 | 1,686 | -349 | -1,336 | 1 |
Total financial liabilities | \u00a0 | 5,204 | 0 | 5,204 | -1,606 | -3,547 | 51 |
This note explains details with regard to the risk profile of NN.
Topics described in this section include:
Partial Internal Model (PIM) (including assumptions and limitations).
Solvency Capital Requirement (SCR) of NN.
Risk profile, risk mitigation and risk measurement of the main types of risks: Market risk, Counterparty default risk, Liquidity risk and Non-market risk.
The Solvency Capital Requirement (SCR) is calculated based on the actual risk exposure of NN. Under Solvency II, SCR is the capital required to ensure that the (re)insurance company will be able to meet its obligations over the next 12 months with a probability of at least 99.5%. The risk-based framework for calculating Solvency Capital Requirements at NN is a combination of an Internal Model (IM) and Standard Formula (SF) components, the so-called Partial Internal Model (PIM). The major Dutch insurance entities use an internal model for modelling SCR for Market, Counterparty default and Non-market risks. The determined SCR is used for both, local reporting and group consolidation purposes. For the EU-based international insurance businesses and smaller insurance undertakings in the Netherlands, NN uses the Solvency II Standard Formula to calculate the SCR for local reporting and for Group consolidation. The capital requirement for Operational risk is based on the Standard Formula approach across the Group.
The non-insurance businesses (e.g. Pension Funds, NN Bank) and international insurance undertakings not based in the EU (e.g. Japan) are consolidated in the Group SCR based on the local applicable (sectoral) capital requirements. The Solvency II concept of (provisional) Equivalence is granted to capital frameworks that are deemed to have similarity with the Solvency II framework and/or principles and as such can be relied upon to assess capital requirements. At NN, the (provisional) Equivalence applies to Japan. The total Group SCR is obtained from the IM and SF capital requirements using EIOPA\u2019s integration technique 3 and the capital requirements for non-insurance businesses and international insurance undertakings not based in the EU.
The choice for a PIM is based on the conviction that an internal model in general better reflects the risk profile of the major Dutch (re)insurance entities and has additional benefits for risk management purposes, whilst the Standard Formula adequately captures the risk profile of the international businesses and smaller Dutch entities:
An Internal Model approach can better reflect the specific assets and therefore the Market risk in the portfolio of Dutch businesses e.g., sovereign and other credit spread risks.
The approach used for most significant Non-market risks within the Life businesses such as longevity (trend uncertainty) and within the Non-life business can be better tailored to NN\u2019s specific portfolio characteristics. Diversifications effects inherent to the business model can be captured in a more adequate manner.
The granularity of the PIM and close alignment of the modelling techniques and parameters to NN\u2019s risk management approach also means that it can be used for a wide range of business decisions.
The assumptions used to determine the risk-free curve are important, as this curve is used for discounting future cash flows and to calculate market value of liabilities. For determining valuation of liabilities on Solvency II balance sheet, NN uses the methodology prescribed by EIOPA for the risk-free rate including the Credit Risk Adjustment (CRA) and the Ultimate Forward Rate (UFR). Where appropriate, the risk-free rate is adjusted with the Volatility Adjustment (VOLA) for the calculation of Own Funds.
For SCR calculations, NN uses replicating portfolio techniques to represent the insurance product related cash flows, options and guarantees by means of standard financial instruments. The replications are used to determine and revalue insurance liabilities under a large number of simulated market scenarios.
As for any integrated financial services provider offering a variety of products across different business segments and geographic regions, and investing in a wide range of assets, diversification is key to NN\u2019s business model. The resulting diversification reflects the fact that all potential worst-case losses are highly unlikely to materialise at the same time. The Internal Model takes diversification effects into account when aggregating required capitals for different risk types as well as at Group level. Diversification benefits result from diversification across regions, business units and risk categories.
Where possible, correlation parameters are derived through statistical analysis based on historical data. In case historical data or other portfolio-specific observations are insufficient or not available, correlations are set by expert judgement via an established, well-defined and controlled process. Similar to other risk models, correlations and expert judgements are also monitored for appropriateness given availability of more recent data, and are subject to regular development, validation and regulatory oversight.
NN\u2019s PIM set-up resulted from managing a balance between (1) an easy to communicate methodology and (2) efficient calculations with appropriate accuracy and granularity to reflect the underlying risks. Despite several limitations stemming from this, the PIM is considered to be adequate to assess NN\u2019s risk profile, to determine SCR and to be used in key decision making processes (use test).
As a result of the granular modelling approach and the wide variety of NN\u2019s assets and liabilities, the PIM is more complex than the Standard Formula.
Inherent model limitations of the PIM are related to the calibration of a 1-in-200-year stress event for a full spectrum of Market and Non-market risks, which is based on sometimes limited historical data. Limitations also relate to the overall aim of determining forward-looking distributions of risk factors under stress based on historical data as well as the use of modelling assumptions and expert judgements.
The components of NN\u2019s PIM for Market and Counterparty default risk and the models for risk aggregation and replication have been developed and are run centrally and thus carry an inherent risk that the developed models include aspects which might be less appropriate for individual entities. On a regular basis the business units perform \u2018Fit For Local Use\u2019 assessments. Models also undergo regular reviews and monitoring, under agreed governance, and in addition, model validations are performed by an independent model validation function. Such reviews can result in additional monitoring and/or locally calculated and further centrally processed adjustments.
The Risk Management function informs the Management Board and Supervisory Board on an annual basis on the performance of the PIM.
After a long period of negotiations between the European Commission, the European Council and the European Parliament, a revised Solvency II directive (Level I) was published in the Official Journal of 8 January 2025. The amended regulation will be effective as of 30 January 2027, which means that reporting after this date will reflect the changes from the Solvency II 2020 review. A public consultation on the delegated acts (Level II) was held in the summer of 2025. This process has been finalised in February 2026 with the approval of the proposed texts from the European Commission by the European Parliament and European Council. Some aspects in the agreement are not detailed out in the Solvency II directive and delegated acts but will be clarified later in the process. The revised Solvency II directive and delegated acts form the basis for the revision of the Level III regulation as well as some of the Level II regulation, which can lead to further changes. Given current market conditions it is expected that for NN Group the total impact on the Solvency II ratio will be broadly neutral after taking into account management actions. If, however, markets or specification of regulations change, this could potentially change the assumed impact.
The following table shows the NN Solvency II ratio as at 31 December 2025 and 31 December 2024, respectively.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Eligible Own Funds | 19,271 | 17,026 |
Solvency Capital Requirement | 8,758 | 8,786 |
NN Group Solvency II ratio (Eligible Own Funds/SCR) | 220% | 194% |
The SCR is based on NN\u2019s PIM. This comprises Internal Model calculations for all risks, except for Operational risk, for NN Life, NN Non-life, NN Re and the main holding companies owned by NN and SF calculations for ABN AMRO Non-life and the international insurance entities of NN in Europe. SCR for Operational risk is calculated using the Standard Formula for all Solvency II entities. The capital requirements of non-Solvency II entities, in particular NN Life Japan, Pension Funds in Europe, and NN Bank are calculated using local sectoral rules.
The following table shows the NN SCR as at 31 December 2025 and 31 December 2024, respectively.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Market risk | 7,023 | 6,555 |
Counterparty default risk | 115 | 112 |
Non-market risk | 4,796 | 4,966 |
Total BSCR (before diversification) | 11,934 | 11,633 |
Diversification | -3,123 | -3,085 |
Total BSCR (after diversification) | 8,811 | 8,548 |
Operational risk | 535 | 567 |
LACFP | -138 | \u00a0 |
LACDT | -1,759 | -1,757 |
Other | 2 | 5 |
Solvency II entities SCR | 7,451 | 7,363 |
Non Solvency II entities | 1,307 | 1,423 |
Total SCR | 8,758 | 8,786 |
The Solvency II total Basic Solvency Capital Requirement (total BSCR after diversification) includes both the PIM businesses\u2019 BSCR and the Standard Formula businesses\u2019 BSCR. This figure also reflects the diversification benefits between the business units using IM and SF.
The general developments of the Basic SCR (BSCR):
Higher Market risk SCR, mainly due to model refinements partially offset by market movements and portfolio development.
Stable Counterparty default risk SCR.
Lower Non-market risk SCR, mainly driven by higher interest rates and the impact of longevity reinsurance at NN Life.
More details on the Market and Non-market risk SCR, as well as explanation on the most important changes in the risk profile, are presented in the next sections.
SCR for Operational risk is broadly stable. The loss-absorbing capacity of future profits (LACFP) refers to the loss absorbing capacity of future profits from renewals and new business to be written in the next 12 months and was introduced in 2025. The offsetting effect of Loss Absorbing Capacity of Deferred Taxes (LACDT) increased mainly due to a higher tax base. In the above table, \u2018Other\u2019 includes loss-absorbing capacity of technical provisions (LACTP) and capital requirements for non-modelled Solvency II entities.
Along with the SCR, NN regularly calculates the sensitivities of the Solvency II ratio under various scenarios, by assessing the changes for both Eligible Own Funds and SCR. The Solvency II ratio sensitivities are primarily designed to support the NN Management Board and the Risk Management functions in having a forward-looking view on the risks to solvency of the company, and to analyse the impacts of market or other events. Additionally, Solvency II ratio sensitivities are used for external communication to enable investors to assess the potential volatility of the company\u2019s solvency ratio. The sensitivities are selected to reflect plausible, realistic scenarios that could materialise within the foreseeable future and are not calibrated on a pre-defined confidence interval or time horizon.
The effect on the Solvency II ratio is calculated based on applying an instantaneous stress on the balance sheet, and on ceteris paribus basis. For all Solvency II insurance entities, NN Life Japan and NN Bank, the after stress Own Funds are calculated for each of the sensitivity scenarios; the impacts on SCR are recalculated for the BSCR and Operational risk SCR components. LACDT is recalculated keeping the LACDT percentage fixed. \u2018Other\u2019 SCR components including the LACTP and LACFP are kept constant.
The Solvency II sensitivities are disclosed for the main Market risks in the sections below.
In the next sections the main risks associated with NN\u2019s business are discussed. Each risk type is analysed through the risk profile, risk mitigation and risk measurement. For Market and Non-market risks more detailed quantification of risk exposures are provided.
Market risk comprises the risks related to the impact of changes in various financial market indicators on NN\u2019s balance sheet. Market risks are taken in pursuit of returns for the benefit of customers and shareholders. Accordingly, risk and return consideration and optimisation are paramount for both policyholder and shareholder. In general, Market risks are managed through a well-diversified portfolio under a number of relevant policies within clearly defined and monitored limits. NN reduces downside risk through various hedging programme, in particular risks for which NN has no or only a limited appetite, such as Interest rate, Inflation, and Foreign exchange risks.
In managing our assets, we apply the prudent person principle, which means that we only invest in assets and instruments whose risks NN can properly identify, measure, monitor, manage, control and report and take into account in the assessment of our overall solvency needs. For new asset classes or asset classes of growing importance, NN continuously improves the relevant processes.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Interest rate risk | 1,480 | 1,163 |
Equity risk | 2,106 | 2,186 |
Credit spread risk | 4,065 | 3,659 |
Real estate risk | 1,909 | 1,907 |
Foreign exchange risk | 483 | 519 |
Inflation risk | 221 | 231 |
Basis risk | 49 | 56 |
Diversification market risk | -3,290 | -3,166 |
Market risk | 7,023 | 6,555 |
In 2025, the Market risk SCR increased from EUR 6,555 million to EUR 7,023 million, mainly driven by model refinements, partially offset by market movements and portfolio developments.
The table below sets out NN\u2019s market value of assets for each asset class as at the end of 2025 and 2024. The values in the table below may differ from those included in the consolidated IFRS balance sheet as derivatives are excluded from this overview and furthermore due to classification and valuation differences to reflect a risk management view.
| \u00a0 | Market value | % of total | Market value | % of total |
|---|---|---|---|---|
| \u00a0 | 2025 | 2025 | 2024 | 2024 |
Fixed income | 127,619 | 82% | 132,556 | 82% |
Government bonds and loans | 37,021 | 24% | 39,492 | 24% |
Financial bonds and loans | 7,810 | 5% | 7,918 | 5% |
Corporate bonds and loans | 22,222 | 14% | 23,325 | 14% |
Asset-backed securities | 2,165 | 1% | 2,423 | 2% |
Mortgages1 | 57,362 | 37% | 58,265 | 36% |
Other retail loans | 1,039 | 1% | 1,133 | 1% |
Non-fixed income | 18,928 | 12% | 20,335 | 13% |
Common & preferred stock2 | 2,236 | 1% | 2,770 | 2% |
Private equity | 97 | \u00a0 | 106 | \u00a0 |
Real estate3 | 11,790 | 8% | 11,932 | 8% |
Mutual funds (money market funds excluded)4 | 4,805 | 3% | 5,527 | 3% |
Money market instruments (money market funds included)5 | 8,954 | 6% | 8,471 | 5% |
Total investments | 155,501 | 100% | 161,362 | 100% |
The total investment assets have decreased from EUR 161.4 billion at the end of 2024 to EUR 155.5 billion at the end of 2025, a decrease of EUR 5.9 billion. This decrease is mainly attributed to the revaluation of the government bond portfolio (EUR -2.2 billion) as a result of increased long term interest rates, the disposal and redemptions of corporate bonds (EUR -1.6 billion), the disposal of non-fixed income assets (EUR -1 billion), and the decrease in the mortgage portfolio (EUR 0.9 billion). The main developments in NN's risk profile in 2025 reflect the company's strategy to maintain a relatively conservative investment portfolio to ensure a resilient balance sheet.
Interest rate risk is defined as the possibility of decrease in the Solvency II Own Funds due to adverse changes in the level or shape of the risk-free interest rate curve used for valuation of assets and liability cash flows. Exposure to Interest rate risk arises from asset or liability positions that are sensitive to changes in this risk-free interest rate curve.
The Interest rate risk SCR of NN increased to EUR 1,480 million at the end of 2025 from EUR 1,163 million at the end of 2024.
The increase is mainly driven by model refinements and market movements, partially offset by portfolio developments.
The Interest rate SCR indicates to what extent interest rate sensitivities of assets and liabilities are matched on a Solvency II basis. The majority of NN liability cash flows are predictable and stable, since exposure to policyholder behaviour and profit-sharing mechanisms is very limited. Therefore, the Interest rate risk management focuses on matching asset and liability cash flows for the durations for which the markets for fixed income instruments are sufficiently deep and liquid. NN manages its interest rate position by investing in long-term bonds and interest rate swaps. While staying overall duration matched, NN has reduced its exposure to normalisation (i.e. rising) of the interest rate curve after the last liquid point according to Solvency II regulation.
NN has implemented limits and tolerances for Interest rate risk exposures at NN Group level as well as for relevant business units to limit Interest rate risk.
Mitigating solutions for new business and products, such as a shift to defined contribution pension products in the Netherlands and a shift towards protection products in general, will reduce interest rate risk resulting from future premium inflows.
For the valuation of EUR-denominated asset cash flows, NN uses market swap curves. For the asset cash flows denominated in other currencies, the relevant swap or government curve is used for that specific currency.
For the purpose of valuation of the EUR-denominated liability cash flows NN uses a swap curve less Credit Risk Adjustment (CRA) plus VOLA in line with definitions under Solvency II. For the liability cash flows denominated in other currencies, the relevant swap or government curve is used where this curve is also lowered by the Credit Risk Adjustment and adding the VOLA specific for each currency. In line with Solvency II regulations, NN extrapolates the EUR swap curve starting from the Last Liquid Point (LLP) onwards to the Ultimate Forward Rate for each relevant currency in its portfolio. The LLP used for EUR is 20 years. As such, the SCR for Interest rate risk primarily depends on the level of cash flow matching between assets and liabilities up to the 20-year point, and the difference between the swap curve and the curve extrapolated to the UFR for longer cash flows.
The sensitivity of the Solvency II ratio to changes in interest rates is monitored on a quarterly basis. The table below presents the Eligible Own Funds, SCR, and Solvency II ratio sensitivities to various changes in interest rates.
Solvency II ratio sensitivities for interest rate comprise the following set of shocks, each of them is calculated independently as a standalone scenario: a parallel up and a parallel down shifts of the discount curve, and a steepening scenario for the interest rates used to discount asset cash flows after the LLP.
2025 | Own Funds impact | SCR impact | Solvency II ratio impact |
|---|---|---|---|
Interest rate: Parallel shock +50 bps | -289 | -237 | 3% |
Interest rate: Parallel shock -50 bps | 238 | 175 | -2% |
Interest rate: 10 bps steepening between 20y-30y | -104 | -11 | -1% |
2024 | Own Funds impact | SCR impact | Solvency II ratio impact |
|---|---|---|---|
Interest rate: Parallel shock +50 bps | -407 | -226 | 0% |
Interest rate: Parallel shock -50 bps | 451 | 247 | -0% |
Interest rate: 10 bps steepening between 20y-30y | -129 | -8 | -1% |
Solvency II ratio sensitivities to interest rates increased as the Eligible Own Funds are more sensitive due to the release of the 15% SCR cap on Tier 3 capital.
Under the parallel shock scenarios, the base risk-free interest rate curves for each currency are shocked by +/-50 bps for all tenors up until the LLP. The other components of the basic risk-free interest rate curve \u2013 namely UFR, Credit Risk Adjustment, VOLA and extrapolation technique towards UFR remain unchanged. The asset interest rate curves are shocked with the parallel shocks for all tenors.
In the interest rate steepening scenario, the EUR asset valuation curve is shocked after the LLP (the LLP for EUR is set at 20 years under Solvency II). The steepening is applied for interest rate curve tenors between 20 and 30 years (a linear increase from 0 to 10 bps of 1bp per tenor). After the 30 years point, the shift in the interest rate curve remains constant at 10bps. As the EIOPA risk-free curve is extrapolated after the LLP, the steepening sensitivity only affects the asset discount curve.
Equity risk is defined as the possibility of a decrease in Solvency II Own Funds due to adverse changes in the level of equity market prices. Exposure to Equity risk arises from direct or indirect asset or liability positions, including equity derivatives such as futures and options, that are sensitive to equity prices.
The table below sets out the market value of NN\u2019s equity assets as at the 31 December 2025 and 2024, respectively.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Common & preferred stock | 2,236 | 2,770 |
Private equity | 97 | 106 |
Mutual funds (money market funds are excluded, fixed income mutual funds are included) | 4,805 | 5,527 |
Total | 7,138 | 8,403 |
NN is mainly exposed to public listed equity and equity exposures through mutual funds, and to a lesser extent to direct private equity. The direct equity exposure is spread mainly across the Netherlands (27% at the end of 2025 compared with 28% at the end of 2024) and remaining exposure in other countries, predominantly in core EU countries (44% at the end of 2025 compared with 49% at the end of 2024, including the Netherlands). Note that mutual funds are classified as equity in the table above but include also fixed income funds. Fixed income mutual funds represent 32% of the total mutual fund market value. The three main mutual fund investments are in private equities (EUR 1.5 billion), infrastructure equities (EUR 1.5 billion) and emerging market debt (EUR 1.0 billion).
As shown in the \u2018Market risk capital requirements\u2019 table, the Equity risk SCR of NN decreased from EUR 2,186 million at the end of 2024 to EUR 2,106 million at the end of 2025 mainly driven by portfolio developments and market movements.
Exposure to equities provides additional diversification and upside return potential in the asset portfolio of an insurance company with long-term illiquid liabilities. The Concentration risk on individual issuers is mitigated by having issuer risk limits in place in investment mandates as well as at NN Group level. There is no natural hedge for Equity risk on the liability side of the balance sheet. NN has the possibility to protect the downside risk of the equity portfolio by selling equity or buying appropriate derivatives.
The sensitivity of the Solvency II ratio to changes in the value of equity is monitored on a quarterly basis.
This scenario estimates the impact of an instantaneous shock of -25% applied to the value of direct equity and private equity mutual funds. Derivatives like equity options or equity forwards which have equity as underlying are also revalued using the same shock applied to the underlying equities or equity indices.
The table below presents the Eligible Own Funds, SCR and Solvency II ratio sensitivity to a downward shock in equity prices at 31 December 2025 and 2024, respectively.
2025 | Own Funds impact | SCR impact | Solvency II ratio impact |
|---|---|---|---|
Equity Downward shock -25% | -917 | -186 | -6% |
2024 | Own Funds impact | SCR impact | Solvency II ratio impact |
|---|---|---|---|
Equity Downward shock -25% | -1,081 | -160 | -9% |
The Solvency II ratio sensitivity to Equity risk has decreased mainly due to the release of the 15% SCR cap on Tier 3 capital.
Credit spread risk is defined as the possibility of a decrease in Solvency II Own Funds due to adverse movements in the credit spreads of fixed income assets. The credit spread widening (or narrowing) reflects market supply and demand, rating migration of the issuer and changes in expectation of default. Changes in liquidity and other risk premia that are relevant to specific assets can play a role in the value changes as well.
In the calculation of the SCR for the PIM entities, NN assumes no change to the VOLA on the liability side of the balance sheet after a shock-event, but instead reflects the illiquidity of liabilities in the asset shocks to ensure an appropriate SCR. This approach ensures appropriate risk incentives and is approved by DNB. NN also shocks all government bonds and its mortgage portfolio in the calculation of Credit spread risk capital requirements for the PIM entities.
The main asset classes in scope of the Credit spread risk module for PIM entities are government and corporate bonds, mortgages and loans.
For the calculation of the SCR for Credit spread risk of the Standard Formula insurance entities, the main asset classes in scope are corporate bonds and loans.
As shown in the \u2018Market risk capital requirements\u2019 table, the Credit spread risk SCR of NN increased from EUR 3,659 million at the end of 2024 to EUR 4,065 million at the end of 2025, driven by model refinements, partially offset by portfolio developments and market movements.
The table below sets out the market value of NN\u2019s bonds and loans subject to Credit spread risk SCR by type of issuer as at 31 December 2025 and 31 December 2025, respectively.
| \u00a0 | Market value | Percentage | ||
|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 |
Sovereign | 37,021 | 39,492 | 54% | 54% |
Finance and Insurance | 7,810 | 7,918 | 11% | 11% |
Manufacturing | 6,778 | 7,089 | 10% | 10% |
Utilities | 2,327 | 2,504 | 3% | 3% |
Asset-backed securities | 2,165 | 2,423 | 3% | 3% |
Transportation and Warehousing | 1,757 | 1,885 | 3% | 3% |
Information | 1,672 | 1,697 | 2% | 2% |
Real Estate and Rental and Leasing | 1,551 | 1,589 | 2% | 2% |
Other | 8,136 | 8,561 | 12% | 12% |
Total | 69,217 | 73,158 | 100% | 100% |
The tables below set out the market value of NN\u2019s government bonds and loans subject to Credit spread risk SCR by country and maturity as at 31 December 2025 and 31 December 2024, respectively.
| \u00a0 | \u00a0 | \u00a0 | Market value of government bond and loans in 2025 by number of years to maturity1 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
2025 | Rating2 | Domestic exposure3 | 0-1 | 1-2 | 2-3 | 3-5 | 5-10 | 10-20 | 20-30 | 30+ | Total 2025 |
Japan | A+ | 100% | 260 | 279 | 268 | 527 | 1,072 | 1,284 | 882 | 379 | 4,951 |
Netherlands (the) | AAA | 99% | 4 | 6 | 156 | 62 | 277 | 1,982 | 788 | 303 | 3,578 |
France | A+ | 0% | 9 | 38 | 9 | 119 | 392 | 1,014 | 987 | 987 | 3,555 |
Belgium | AA- | 25% | 61 | 0 | 311 | 18 | 809 | 1,225 | 665 | 430 | 3,519 |
European Union | AAA | 0% | 24 | 1 | 6 | 22 | 154 | 535 | 2,552 | 0 | 3,294 |
Germany | AAA | 0% | 100 | 51 | 336 | 96 | 711 | 814 | 815 | 277 | 3,200 |
Spain | A | 28% | 41 | 27 | 50 | 247 | 189 | 1,524 | 154 | 74 | 2,306 |
Austria | AA+ | 0% | 153 | 257 | 3 | 26 | 75 | 507 | 311 | 908 | 2,240 |
Italy | BBB+ | 0% | 3 | 100 | 28 | 170 | 219 | 170 | 359 | 47 | 1,096 |
United States of America (the) | AA+ | 0% | 0 | 0 | 0 | 0 | 2 | 0 | 1,063 | 0 | 1,065 |
Poland | A | 75% | 54 | 85 | 36 | 344 | 306 | 42 | 122 | 0 | 989 |
Other5 - Above Investment Grade4 | \u202f | \u202f | 246 | 235 | 270 | 572 | 1,240 | 2,425 | 1,088 | 63 | 6,139 |
Other5\u202f- Below Investment Grade4 | \u202f | \u202f | 1 | 39 | 33 | 219 | 668 | 89 | 40 | 0 | 1,089 |
Total | \u00a0 | \u00a0 | 956 | 1,118 | 1,506 | 2,422 | 6,114 | 11,611 | 9,826 | 3,468 | 37,021 |
| \u00a0 | \u00a0 | \u00a0 | Market value of government bond and loans in 2024 by number of years to maturity1 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | Rating2 | Domestic exposure3 | 0-1 | 1-2 | 2-3 | 3-5 | 5-10 | 10-20 | 20-30 | 30+ | Total 2024 |
Japan | A+ | 100% | 394 | 284 | 321 | 652 | 1,391 | 1,692 | 1,314 | 519 | 6,567 |
France | AA- | 0% | 73 | 80 | 43 | 100 | 204 | 1,355 | 347 | 2,063 | 4,265 |
Belgium | AA- | 27% | 7 | 58 | \u00a0 | 329 | 327 | 1,578 | 936 | 618 | 3,853 |
Netherlands (the) | AAA | 99% | 51 | 9 | 13 | 250 | 320 | 2,699 | 267 | 9 | 3,618 |
Germany | AAA | 0% | 30 | 99 | 53 | 353 | 926 | 1,228 | 413 | 210 | 3,312 |
Spain | A- | 30% | 114 | 43 | 24 | 262 | 190 | 1,591 | 125 | 79 | 2,428 |
European Union | AAA | 0% | 5 | 24 | 3 | 3 | 213 | 791 | 1,305 | \u00a0 | 2,344 |
Austria | AA+ | 0% | \u00a0 | 157 | 233 | 7 | 38 | 512 | 257 | 1,098 | 2,302 |
USA | AA+ | 0% | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 205 | 1,369 | \u00a0 | 1,574 |
Finland | AA+ | 0% | 162 | 3 | 1 | 68 | 1 | 722 | 48 | 54 | 1,059 |
Italy | BBB | 0% | 9 | 4 | 103 | 174 | 317 | 111 | 270 | 35 | 1,023 |
Other - Above Investment Grade4 | \u202f | \u202f | 263 | 317 | 245 | 738 | 1,385 | 1,552 | 1,606 | 82 | 6,188 |
Other - Below Investment Grade4 | \u202f | \u202f | \u00a0 | 4 | 61 | 106 | 644 | 106 | 38 | \u00a0 | 959 |
Total | \u00a0 | \u00a0 | 1,108 | 1,082 | 1,100 | 3,042 | 5,956 | 14,142 | 8,295 | 4,767 | 39,492 |
Out of NN\u2019s total sovereign debt exposure, 48% (or EUR 17.8 billion) is invested in AAA and AA rated eurozone countries and in bonds issued by the European Commission, at the end of 2025 as compared to 55% at the end of 2024. The drop is mainly due to France being downgraded out of the AA category. Of the EUR 17.8 billion core eurozone government bonds and loans held by NN, 77% will mature after year 10 and 42% after year 20 in 2025 while those for 2024 were EUR 22 billion, 80% and 37% respectively. With regard to Central and Eastern Europe, the government bond exposures are mainly domestically held. In the PIM, all government bonds contribute to Credit spread risk, including those rated AAA.
The tables below show the market value of non-government fixed-income securities (excluding mortgages and derivatives) by rating and maturity.
| \u00a0 | Market value of non-government bond securities and loans in 2025 by number of years to maturity | ||||||||
|---|---|---|---|---|---|---|---|---|---|
2025 | 0-1 | 1-2 | 2-3 | 3-5 | 5-10 | 10-20 | 20-30 | 30+ | Total 2025 |
AAA | 279 | 170 | 35 | 100 | 737 | 578 | 794 | 771 | 3,464 |
AA | 212 | 328 | 223 | 380 | 612 | 318 | 70 | 78 | 2,221 |
A | 1,249 | 1,146 | 1,296 | 2,814 | 3,398 | 1,496 | 711 | 138 | 12,248 |
BBB | 1,179 | 1,075 | 885 | 2,350 | 2,722 | 1,072 | 510 | 55 | 9,848 |
BB | 62 | 301 | 456 | 565 | 519 | 106 | 5 | 0 | 2,014 |
B and below | 166 | 128 | 449 | 515 | 493 | 72 | 11 | 0 | 1,834 |
No rating available | 219 | 25 | 45 | 99 | 180 | 0 | 0 | 0 | 568 |
Total | 3,366 | 3,173 | 3,389 | 6,823 | 8,661 | 3,642 | 2,101 | 1,042 | 32,197 |
| \u00a0 | Market value of non-government bond securities and loans in 2024 by number of years to maturity | ||||||||
|---|---|---|---|---|---|---|---|---|---|
2024 | 0-1 | 1-2 | 2-3 | 3-5 | 5-10 | 10-20 | 20-30 | 30+ | Total 2024 |
AAA | 344 | 212 | 196 | 88 | 572 | 783 | 888 | 962 | 4,045 |
AA | 213 | 277 | 330 | 494 | 589 | 405 | 80 | 84 | 2,472 |
A | 1,022 | 1,424 | 1,191 | 2,281 | 3,920 | 1,420 | 847 | 142 | 12,247 |
BBB | 1,044 | 1,529 | 1,140 | 1,808 | 3,031 | 1,518 | 560 | 66 | 10,696 |
BB | 362 | 190 | 378 | 799 | 509 | 70 | \u00a0 | 13 | 2,321 |
B and below | 173 | 186 | 115 | 713 | 292 | 54 | 11 | \u00a0 | 1,544 |
No rating available | 143 | 84 | 18 | 70 | 25 | \u00a0 | \u00a0 | \u00a0 | 340 |
Total | 3,301 | 3,902 | 3,368 | 6,253 | 8,938 | 4,250 | 2,386 | 1,267 | 33,665 |
The table below shows NN\u2019s holdings of loans and other debt securities as at 31 December 2025 and 31 December 2024, respectively.
| \u00a0 | 2025 | 2024 |
|---|---|---|
AAA | 14,035 | 13,754 |
AA | 12,169 | 17,535 |
A | 24,814 | 23,296 |
BBB | 12,672 | 13,250 |
BB | 2,798 | 3,193 |
B and below | 2,138 | 1,765 |
No rating available | 484 | 263 |
Mortgages1 | 57,362 | 58,265 |
Other Retail Loans | 1,146 | 1,235 |
Total | 127,618 | 132,556 |
The valuation of mortgages is based on the market interest rate (swap rate) as well as the prevailing mortgage rates for new mortgages, which are adjusted for the delay in their response to changes in swap rates. Valuation changes related to changes in the swap rates are reflected as interest rate risk, while the remaining value movements are assumed to be related to credit (spread) risk.
The required capital for mortgages within entities under the PIM is calculated in the credit spread risk module while the required capital for mortgages within entities under Standard Formula is calculated in the counterparty default risk module. The credit spread risk module within the PIM captures the behaviour of Own Funds when the valuation of mortgages changes with market mortgage rates, while the counterparty default risk module within Standard Formula captures the behaviour of Own Funds as a result of unexpected loss or default of mortgages.
The Loan-to-Value (LTV) for residential mortgages (which is based on the net average loan to property indexed value) at NN Life, the Banking business, NN Non-life and NN Belgium stood at 50%, 53%, 54% and 50% respectively at the end of December 2025 while those were 53%, 54%, 57% and 52% respectively at the end of December 2024. The portfolio remains well-collateralised with an average LTV for NN Group of 52% at the end of 2025 (54% at the end of 2024). The LTV slightly decreased from 2024 due to the house price increase of 7.8% in the Netherlands between Q3 2024 and Q3 20251.
The inherent credit risk of mortgages is backed primarily by means of the underlying property, but also through the inclusion of mortgages guaranteed by the Nationale Hypotheek Garantie (NHG) and other secondary covers like savings, investments and life insurance policies. Mortgages with NHG accounted for 20%, 34%, 17% and 27% at NN Life, the Banking business, NN Non-life, and NN Belgium respectively at the end of 2025 and 23%, 34%, 17% and 26% at NN Life, the Banking business, NN Non-life and NN Belgium respectively at the end of 2024. On portfolio level the NHG coverage showed no significant changes.
| \u00a0 | 2025 | 2024 |
|---|---|---|
NHG | 26% | 27% |
LtV <= 80% | 70% | 68% |
LtV 80% - 90% | 3% | 4% |
LtV 90% - 100% | 1% | 1% |
LtV > 100% | 0% | 0% |
Total NN Group | 100% | 100% |
The mortgage portfolio is under regular review to ensure troubled assets are identified early and managed properly. The loan is categorised as a non-performing loan (NPL) if the loan is 90 days past due, or the client was in default the previous month, and the minimum holding period (MHP) is active or the loan is classified as Unlikely To Pay (UTP) by the problem loans department.
The main criterion for lifting the default status are no current arrears and no active unlikely-to-pay indicators during the Minimum Holding Period (MHP). For defaulted clients that are classified as \u2018distressed restructuring\u2019, the MHP is 12 months. For all other defaulted clients, the MHP is 3 months.
The provision slightly increased by EUR 0.2 million to EUR 4 million due to a management overlay related to interest-only loans from NN Bank.
\u2018Remaining exposure at risk\u2019 refers to exposures that are not covered by any form of guarantee or collateral. This amount increased slightly in 2025, due to the inflow of second mortgages for which NN Group does not hold the first lien and therefore has no collateral. Despite this increase, the level of remaining exposure at risk remains low, supported by rising house prices in 2025. The NHG guarantee value declined primarily due to an outgoing transfer from NN Life of EUR 681 million in outstanding exposure, which largely consisted of NHG loans. In addition, enhancements to the methodology used to calculate the NHG guarantee value further contributed to the decrease.
| \u00a0 | Life business | Banking | Other1 | Total | ||||
|---|---|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Performing mortgage loans that are not past due | 24,376 | 25,610 | 23,437 | 22,491 | 4,266 | 4,807 | 52,079 | 52,908 |
Performing mortgage loans that are past due | 74 | 105 | 103 | 136 | 12 | 23 | 189 | 264 |
Non-performing mortgage loans2 | 67 | 75 | 101 | 113 | 20 | 15 | 188 | 203 |
Total | 24,517 | 25,790 | 23,641 | 22,740 | 4,298 | 4,845 | 52,456 | 53,375 |
Provisions for performing mortgage loans | 1 | 1 | 1 | 1 | 0 | 0 | 2 | 2 |
Provisions for non-performing mortgage loans2 | 1 | 1 | 1 | 1 | 0 | 0 | 2 | 2 |
Total | 2 | 2 | 2 | 2 | 0 | 0 | 4 | 4 |
| \u00a0 | Life business | Banking | Other1 | Total | ||||
|---|---|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Carrying value | 24,517 | 25,790 | 23,641 | 22,740 | 4,298 | 4,845 | 52,456 | 53,375 |
Indexed collateral value of real estate | 56,697 | 55,761 | 54,131 | 49,913 | 9,478 | 10,179 | 120,306 | 115,853 |
Savings held2 | 1,200 | 1,146 | 1,591 | 1,563 | 78 | 80 | 2,869 | 2,789 |
NHG guarantee value3 | 3,695 | 4,998 | 6,402 | 6,081 | 792 | 966 | 10,889 | 12,045 |
Total cover value + including NHG guarantee capped at carrying value | 24,511 | 25,784 | 23,634 | 22,739 | 4,298 | 4,845 | 52,443 | 53,368 |
Remaining exposure at risk | 6 | 6 | 7 | 1 | 0 | 0 | 13 | 7 |
NN has Concentration risk limits for individual issuers which depend on the credit quality of the issuer; for individual asset classes; and country limits which depend on the country\u2019s credit rating and GDP, and whether the country is a member of the European Union. These limits ensure that large risk concentrations are avoided. NN has ensured a high level of diversification in its fixed income portfolio by investing in a high number of issuers, across a broad range of countries, sectors and asset classes. In addition, NN\u2019s mortgages are subject to strict underwriting criteria and are well collateralised.
The sensitivity of the Solvency II ratio to changes in credit spreads is monitored on a quarterly basis. The tables below present the Eligible Own Funds, SCR and Solvency II ratio sensitivities to various changes in credit spreads.
2025 | Own Funds impact | SCR impact | Solvency II ratio impact |
|---|---|---|---|
Credit spread: Parallel shock for AAA-rated government bonds +50 bps | -423 | -5 | -5% |
Credit spread: Parallel shock for AA and lower-rated government bonds +50 bps | -499 | -53 | -4% |
Credit spread: Parallel shock spreads corporates +50 bps | 209 | -88 | 5% |
Credit spread: Parallel shock spreads mortgages +25 bps | -362 | -19 | -4% |
2024 | Own Funds impact | SCR impact | Solvency II ratio impact |
|---|---|---|---|
Credit spread: Parallel shock for AAA-rated government bonds +50 bps | -501 | -9 | -6% |
Credit spread: Parallel shock for AA and lower-rated government bonds +50 bps | -759 | -45 | -8% |
Credit spread: Parallel shock spreads corporates +50 bps | 391 | -72 | 6% |
Credit spread: Parallel shock spreads mortgages +25 bps | -551 | -18 | -6% |
Solvency II ratio sensitivities to credit spread decreased as the Eligible Own Funds\u00a0are less sensitive due to the release of the 15% SCR cap on Tier 3 capital.
NN has exposure to government, corporate and financial debt and is exposed to spread changes for these instruments. Furthermore, the VOLA in the valuation of liabilities introduces an offset to the valuation changes on the asset side (except for mortgages).
The Solvency II sensitivities for spread changes cover four possible scenarios \u2013 spread widening for AAA rated government bonds, spread widening for non-AAA rated government bonds, spread widening for corporates and spread widening for mortgages. For three scenarios, a parallel widening of the respective spread curves of +50bps is assumed, while for mortgages it is +25 bps. There is a corresponding translation of the spread widening on asset valuations on the VOLA according to EIOPA\u2019s reference portfolio in each of the scenarios.
Government bond shocks are applied to the following asset classes: government bonds and loans, government-linked instruments (sub- sovereigns and supranational). Corporate spread shocks are applied to the following asset classes: corporate bonds (financials and non-financials), covered bonds, subordinated bonds, asset-backed securities and loans. Mortgages are subject to spread shocks in a separate scenario.
NN\u2019s sensitivity to credit spread changes is mainly driven by the difference between NN\u2019s investment portfolio and the EIOPA reference portfolio. The reference portfolio represents the weights of an average European insurers\u2019 portfolio to different fixed income assets and is used to determine the level of the VOLA to be applied for the valuation of liabilities. Asset spread changes impact the level of the VOLA and therefore also the valuation of liabilities and thus provide an offset to asset valuation changes. NN is exposed to widening in government bond spreads as the VOLA provides only a partial offset of the losses on the asset side. At the same time, the exposure to widening of credit spreads on corporate bonds has a positive impact on the ratio due to a lower exposure of NN to these asset classes compared with the reference portfolio. Mortgages spread widening has a negative impact on the Solvency II ratio, as mortgages are not part of the reference portfolio.
Real estate risk is defined as the possibility of decrease in Solvency II Own Funds due to adverse changes in the value of real estate. Exposure to Real estate risk arises mainly from holding direct real estate properties or positions in real estate mutual funds. With the long-term nature of the liabilities of NN, illiquid assets such as real estate play an important role in the asset allocation.
NN\u2019s real estate exposure (excluding forward commitments) remained stable at EUR 11,790 million, from EUR 11,932 at the end of 2024. The real estate exposure is mainly present in the portfolios of NN Life, NN Non-life and NN Belgium Life.
NN has various categories of real estate: investments in real estate funds and joint-ventures, real estate directly owned and investments in buildings occupied by NN. Several of the real estate funds, in which NN participates, include leverage and therefore the actual real estate exposure (as reflected in the EUR 11,790 million) is larger than NN\u2019s value of participation in real estate funds. The real estate portfolio is held for the long-term and is illiquid. Furthermore, there are no hedge instruments available in the market to effectively reduce the impact of market volatility.
Rental income is largely in line with inflation and occupancy rates in 2025 are high at around 95%. Real estate is valued by external independent appraisers. On average, European real estate markets showed modest growth in 2025, which is expected to continue in 2026.
The table below sets out NN\u2019s real estate exposure per region as at 31 December 2025 and 2024, respectively.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Western Europe | 57% | 56% |
Southern Europe | 20% | 18% |
Nordics | 9% | 10% |
Central and Eastern Europe | 5% | 5% |
UK and Ireland | 9% | 11% |
Total | 100% | 100% |
The real estate portfolio is well-diversified across sectors and geographies throughout Europe. Real estate exposure is mainly from Western European countries. Main underlying types are residential real estate (43%) and industrial real estate (26%). Retail and office real estate represents respectively 17% and 6% of NN's total real estate exposure.
As shown in the \u2018Market risk capital requirements\u2019 table, the Real estate risk SCR of NN was stable at EUR 1,907 million at the end of 2024 to EUR 1,909 million at the end of 2025.
Exposure to real estate provides for additional diversification for the asset portfolio. The Concentration risk on individual assets is limited under the relevant investment mandates. Real estate portfolio is also well diversified across European countries and sectors.
The sensitivity of the Solvency II ratio to changes in the value of real estate is monitored on a quarterly basis. This scenario estimates the impact of an instantaneous shock of -10% to the value of direct real estate exposures and real estate within mutual funds, including mutual funds for infrastructure equity.
The table below presents the Eligible Own Funds, SCR and Solvency II ratio sensitivity to a downward shock in the value of real estate at 31 December 2025 and 2024.
| \u00a0 | Own Funds impact | SCR impact | Solvency II ratio impact | |||
|---|---|---|---|---|---|---|
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Real estate Downward shock -10% | -1,010 | -1,334 | -69 | -90 | -10% | -13% |
The Solvency II ratio sensitivity to Real estate risk has decreased as the Eligible Own Funds are less sensitive due to the release of the15% SCR cap on Tier 3 capital.
Foreign exchange (FX) risk measures the negative impact on Solvency II Own Funds related to changes in currency exchange rates.
FX transaction risk can occur on a local entity level, while FX translation risk can occur when non-Euro entities are consolidated at the level of NN and show a risk in regard to NN\u2019s reporting currency, the Euro.
The SCR for Foreign exchange risk decreased from EUR 519 million at the end of 2024 to EUR 483 million at the end of 2025. This is mainly due to portfolio developments and to model refinements.
The FX risk at the local entity level is mitigated by limiting investment to the non-local currency assets or by hedging with FX forwards and cross currency swaps.
Inflation risk is defined as the risk of adverse changes in inflation that result in a decrease in Solvency II Own Funds. Inflation risk is calculated for the Dutch entities applying the PIM for the SCR calculation.
The SCR for Inflation risk remained stable at EUR 221 million at the end of 2025 and EUR 231 million at the end of 2024. Inflation risk results from the sensitivity of some liabilities towards inflation rates.
The Inflation risk is managed through the use of inflation-linked swaps and investments in inflation-linked bonds. The exposure to inflation-linked liabilities is limited.
The SCR Basis risk is defined as a risk that the underlying asset or liability behaves differently than the underlying hedge instrument, which results in the loss in the Solvency II balance sheet.
The SCR for Basis risk is stable at EUR 49 million.
Basis risk is mitigated by selecting appropriate hedging instruments for the underlying assets and liabilities.
For the Standard Formula entities there is an additional SCR for Concentration risk calculated under Standard Formula, which is defined as the risk of loss in the Basic Own Funds as a result of the default of an issuer in which NN has a concentrated investment position. Under the internal model, there are no charges for concentration risk, as NN's limit framework ensures that there are no large concentrations to issuers outside NN's risk appetite.
The SCR for Concentration risk remained at nil in 2025.
This Concentration risk is mitigated by Concentration risk limits, which ensures that there are no large concentrations to issuers outside NN's risk appetite.
The separate account businesses are those in which the policyholder bears the majority of the Market and Credit risk. NN\u2019s earnings from the separate account businesses are primarily driven by fee income.
However, in the case of variable annuities (VA), constant proportion portfolio insurance (CPPI) policies and the guaranteed separate account pension business in the Netherlands, NN retains risk associated with the guarantees provided to its policyholders. Businesses in this separate account category are (i) the group pension business in the Netherlands for which guarantees are provided and (ii) other separate account business, primarily the unit-linked business, the CPPI business and the VA business.
In the Dutch separate account guaranteed group pension portfolio, investments are held in separate accounts on behalf of the sponsor employer who concluded their contract with NN Life.
Regardless of actual returns on these investments, pension benefits for the beneficiaries are guaranteed under the contract. The value of the provided guarantee is sensitive to interest rates, movements in the underlying funds and the volatility of those funds.
The Assets under management for NN Life\u2019s portfolio has remained at EUR 2.3 billion at 31 December 2025 compared to EUR 2.3 billion at 31 December 2024. In general, the materiality of the separate account business within NN Life has reduced in the past few years due to the run-off of the portfolio.
Businesses in the separate account category are the group pension business for which certain guarantees are provided, and other separate account business, primarily the unit-linked business. Some unit-linked policies include a guarantee on the performance of specific underlying funds. The value of this guarantee is sensitive to interest rates, movements in the underlying funds and the volatility of those funds.
NN Leven currently hedges the value of the guarantees it provided under group pension contracts. For the purpose of hedging, the exposure under such guarantees is discounted at the swap curve without the extrapolation to the UFR. The hedge programme includes interest rate swaps, equity index options and equity futures. Upon contract renewal, NN Leven offers policyholders defined contribution products with investments in portfolios that NN Life can more easily hedge, thus reducing the risk to NN Life.
The other separate account business primarily consists of unit-linked insurance policies, CPPI policies, variable annuities (VA) and unit-linked corporate-owned term life insurance (ULT). Unit-linked insurance policies provide policyholders with selected fund returns combined with an insurance cover. The Investment risk is borne by the policyholder, although there are some unit-linked products where NN has provided guarantees on the performance of specific underlying funds. Unit-linked products without guarantees do not expose NN to Market risk, except to the extent that the present value of future fees is affected by market movements of the underlying policyholder funds.
Variable annuities in the VA Japan and VA Europe business consist of guaranteed minimum accumulation benefit products, guaranteed minimum death benefit products and guaranteed minimum withdrawal benefit products. The CPPI products sold in Spain and Greece are guaranteed minimum accumulation products. ULT policies are sold by NN Life Japan and contain guaranteed minimum death benefits.
The Market risks of the unit-linked and other separate account business are managed by product design.
Currently, NN does not hedge the Market risks related to the present value of future fee income derived from this business (except for the Japanese VA business). For the VA business and the UL-COLI business, NN has hedging programmes in place for the guaranteed benefits targeting Equity, Interest rate, Credit spread, and FX risk as well as Volatility risk. For the CPPI business, NN transfers a small share of the Market risk to external counterparties via bespoke derivatives.
NN determines Eligible Own Funds for the Market and Credit risks of the separate account business through modelling the risks in the fee income and the guarantees including the mitigating effects of the hedge programmes.
Counterparty default risk is the risk of loss due to default or deterioration in the credit standing of the counterparties and debtors (including reinsurers) of NN. The SCR for Counterparty default risk is primarily based on the issuer\u2019s probability of default (PD) and the loss-given- default (LGD) of each individual position taking into account diversification across these positions.
The Counterparty default risk module also covers any Credit risk exposures which are not covered in the Credit spread risk sub-module.
As shown in the \u2018Solvency Capital Requirements\u2019 table, the Counterparty default risk SCR of NN remained stable at EUR 112 million at the end of 2024 and EUR 115 million at the end of 2025. In the PIM the mortgages do not get capital charge under the Counterparty default risk and are under Credit spread risk SCR sub-module for these business units.
NN uses different Credit risk mitigation techniques. For over the counter derivatives, the exchange of collateral under the International Swaps and Derivatives Associations contracts accompanied with Credit Support Annexes is an important example of risk mitigation. Other forms of Credit risk mitigation include reinsurance collateral exchange. For cash and money market funds, limits per counterparty are put in place.
The Counterparty default risk (CDR) module comprises two sub-modules:
CDR Type I: applicable to exposures which might not be diversified and where the counterparty is likely to be (externally) rated, e.g., reinsurance contracts, derivatives and money market exposures. The underlying model is the Ter Berg model (which was also the basis for Standard Formula calibration under Solvency II).
CDR Type II: applicable to exposures that are usually (well) diversified and where the counterparty is likely to be unrated, like retail loans, but also other forms of term lending not covered in Type I.
The capital charges for CDR Type I and CDR Type II exposures are calculated separately and subsequently aggregated.
As of 1 January 2023, NN implemented IFRS 17 \u2018Insurance Contracts\u2019. IFRS 17 introduces, among others, additional disclosures related to risk management. Whereas most of these are covered in the relevant sections of this Annual Report, the tables below outline Counterparty default risk arising from insurance and reinsurance contracts. For more information regarding IFRS 17 see section Our performance and Note 12 Insurance contracts.
The exposures in the tables below are the maximum exposure given on Solvency II Standard Formula basis. Standard Formula basis is used due to the fact that Standard Formula rating is more conservative. Intercompany exposure is excluded.
20251 | Insurance contracts2 | Reinsurance held as Assets3 | Reinsurance held as Liabilities3 | Reinsurance Total3 |
|---|---|---|---|---|
AA | \u00a0 | 591 | -1,137 | -546 |
A | 61 | 156 | -71 | 85 |
BBB | \u00a0 | 10 | 0 | 10 |
No rating available | 1,075 | 27 | -16 | 11 |
20241 | Insurance contracts2 | Reinsurance held as Assets3 | Reinsurance held as Liabilities3 | Reinsurance Total3 |
|---|---|---|---|---|
AA | \u00a0 | 653 | -894 | -241 |
A | 53 | 183 | -67 | 116 |
BBB | \u00a0 | 14 | \u00a0 | 14 |
No rating available | 1,134 | 32 | -15 | 18 |
Liquidity risk is the risk that one of NN\u2019s entities does not have sufficient liquid assets to meet its financial obligations when they become due and payable, at reasonable cost and in a timely manner. Liquidity in this context is the availability of funds, or certainty that funds will be available without significant losses, to honour all commitments when due. NN manages Liquidity risk via a Liquidity risk framework, ensuring that \u2013 even after shock \u2013 NN\u2019s businesses can meet immediate obligations. Liquidity stress events can be caused by a market-wide event or an idiosyncratic NN specific event. These events can be short-term or long-term and can both occur on a local, regional or global scale, both through cash flows related to assets and liabilities.
Subsidiaries that trade derivatives are responsible for maintaining sufficient liquidity levels to meet their collateral requirements. For this purpose, liquidity buffers are set to ensure sufficient liquidity is available in an adverse scenario and to ensure the liquidity thresholds are being met.
Liquidity risk covers three areas of attention. Operational liquidity risk is the risk that liquid funds are unavailable to meet financial obligations when due. Market liquidity risk, is the risk that an asset cannot be sold on short-term without significant losses. Funding risk is the risk related to not being able to refinance maturing debt instruments and may lead to higher funding costs. The connection between Market and Funding liquidity risk stems from the fact that when payments are due and not enough cash is available, investment positions need to be converted into cash. If market liquidity is low or an adverse market movement took place in this situation, this could lead to a loss.
In 2025, Liquidity risk remains relevant to consider given the volatility in interest rates. In case of a significant increase of interest rates, NN is exposed to the risk of having to sell assets which contribute to capital generation or to the hedging of liability cash flows. NN has a robust liquidity risk management framework in place to manage this risk. A minimum buffer of immediately available liquidity (cash and committed facilities) is maintained. Repurchase agreements (repos), Group cash capital and the revolving credit Facility at Group can further support the liquidity position if needed.
A liquidity event on the liability side, resulting from e.g. payments related to increased lapses or claims, leads to a liquidity outflow which may affect the overall liquidity position of NN. This outflow typically occurs over a period of time. NN\u2019s liquidity metrics demonstrate that NN has sufficient cash and unencumbered liquid assets which can be liquidated to fulfill stressed liquidity needs from liabilities in a combined market and liability stress scenario. Selling liquid assets in the case of a lapse event is considered to be a logical consequence since the balance sheet decreases.
NN aims to match day-to-day cash in- and outflows and at the same time wants to be able to have sufficient cash in case of a liquidity stress event. NN holds a minimum buffer of cash which is immediately available in order to be able to meet collateral calls from derivatives exposures in the case of significant market movements, as well as outflows from liabilities in a stress situation. Furthermore, NN has a wide range of options to generate additional liquidity, if necessary, amongst which committed repo facilities which are available at all times and a revolving credit facility.
NN Liquidity Management Principles defines three levels of Liquidity Management:
Short-term liquidity (including operational liquidity) management covers the day-to-day cash requirements under normal business conditions.
Long-term liquidity management considers business conditions, in which Market liquidity risk materialises.
Stress liquidity management looks at the company\u2019s ability to respond to a potential crisis situation.
NN measures Liquidity risk as the ratio of available over required liquidity in a stress event at one-year horizon. Liquidity risk is not a separate risk category in NN\u2019s PIM.
Within the SCR PIM a differentiation is made for the classification of Non-market risks for different NN entities depending on the model applied.
For the business units applying PIM, Non-market risks are split between:
Insurance risk: is the risk related to the events insured by NN and comprise Actuarial and Underwriting risks such as Mortality risk (including Longevity), Morbidity risk, and Property & Casualty risk which result from the pricing and acceptance of insurance contracts.
Business risk: is the risk related to the management and development of the insurance portfolio but exclude risks directly connected to insured events. Business risk includes Expense risk, Persistency risk, and Premium re-rating risk. Business risks can occur because of internal, industry, regulatory/political or wider market factors. Persistency risk is the risk that policyholders use options available in the insurance contracts in a way that is different from that expected by NN. Depending on the terms and conditions of the insurance policy, and the laws and regulations applicable to the policy, policyholders could have the option to surrender, change premiums, change investment fund selections, extend their contracts, take out policy loans, and make choices about how to continue their annuity and pension savings contracts after the accumulation phase, or even change contract details. Policyholder behaviour therefore affects the profitability of the insurance contracts. Changes in tax laws and regulations can affect policyholder behaviour, particularly when the tax treatment of their products affects the attractiveness of these products for customers.
For the business units applying Standard Formula, Non-market risks are split between:
Life risk: the life portfolio is mainly attributed to the individual and group business in the international entities of NN (mainly Belgium, Spain, Poland). This risk comprises the Mortality, Longevity, Disability/morbidity, Expense, Lapse, and Life catastrophe risks.
Health risk: this covers the Similar to Life Techniques (SLT) Health portfolio risk (comprising Mortality, Longevity, Disability/morbidity, Expense and Lapse risks), the Non-SLT (NSLT) Health portfolio risk (comprising Premium and Reserve risk and Lapse risk), and the Health catastrophe risk. Within NN, the Health risk stems from morbidity riders in Belgium, Poland, Slovakia, Romania, from the yearly renewable health insurance portfolio of Greece and Hungary.
Non-life risk: this covers Non-life portfolio mainly contributed by ABN AMRO Non-life. This risk covers the Premium and Reserve risk, Non-life catastrophe risk, and Lapse risk.
We assess natural catastrophe risks such as windstorm, flood and hail (depended on the business unit's exposure to these risks) in our current SCR models considering losses over the next one-year horizon under a 1-in-200 year event. Furthermore, we regularly conduct assessments into the financial materiality of sustainability risks on our balance sheet. NN has concluded that the calculation of SCR does not require any adjustments at this point due to risks related to sustainability, as these risks are either covered by the SCR or are expected to be limited over this time horizon.
The table below presents the Non-market risk SCR composition at the end of 2025 and at the end of 2024, respectively.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Insurance risk (IM entities) | 2,300 | 2,641 |
Business risk (IM entities) | 1,757 | 1,729 |
Life risk (SF entities) | 1,424 | 1,286 |
Health risk (SF entities) | 353 | 325 |
Non-life risk (SF entities) | 155 | 100 |
Diversification non-market risk | -1,193 | -1,115 |
Non-market risk | 4,796 | 4,966 |
The Non-market risk SCR decreased from EUR 4,966 million at the end of 2024 to EUR 4,796 million at the end of 2025.
The decrease is predominantly driven by higher interest rates and the impact of longevity insurance at NN Life, partially offset by model changes.
Appropriate pricing, underwriting, claims management and diversification are the main risk mitigating actions for Insurance risks.
NN Insurance risks are mainly managed on business unit level. Insurance liabilities cover multiple geographies, product benefits, lengths of contract and both Life and Non-life risk. NN reduces the likelihood that a single risk event will have a material impact on NN\u2019s financial condition. Risks not sufficiently mitigated by diversification are managed through concentration and exposure limits and through reinsurance: retention limits for Non-life insurance risks are set by line of business for catastrophic events and individual risk.
Furthermore, Insurance risks are managed through terms and conditions of the insurance policies to ensure that NN underwriting is correctly aligned with the intended policyholder benefits to mitigate the risk that unintended benefits are covered. This is achieved through NN\u2019s underwriting standards, product design requirements, and product approval and review processes.
Insurance risk is the risk that the future insurance claims and other contractual benefits cannot be covered by premiums, policy fees and/or investment income or that insurance liabilities are not sufficient because claims and benefits might differ from the assumptions used in determining the best estimate liability.
The table below presents the PIM Insurance risk SCR for the Dutch NN insurance entities of NN (namely NN Life, NN Non-life and NN Re) as at 31 December 2025 and 31 December 2024, respectively.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Mortality (including longevity) risk | 1,563 | 1,969 |
Morbidity risk | 1,114 | 1,295 |
Property & Casualty risk | 972 | 816 |
Diversification insurance risk | -1,349 | -1,439 |
Insurance risk (IM entities) | 2,300 | 2,641 |
Decrease in the Insurance risk SCR is mostly driven by higher interest rates, as well as the impact of longevity reinsurance at NN Life.
Mortality risk occurs when claims are higher due to higher mortality experience (for instance in relation to term insurance). Longevity risk is the risk that technical provisions to cover insurance obligations will not be sufficient due to higher than expected life expectancies arising from mortality improvements such as better living conditions, improved health care, and medical breakthroughs. While NN is exposed to both Longevity and Mortality risks, these risks do not fully offset one another as the impact of the Longevity risks in the pension business in the Netherlands is significantly larger than the Mortality risk in the other businesses.
Morbidity risk is borne primarily by the health insurance portfolio which pays out a fixed amount benefit, reimburses losses (e.g. in the case of loss of income), or pays for expenses of medical treatment related to certain illness or disability events. The main exposures to Morbidity risks within NN are the disability insurance policies underwritten in Netherlands Non-life.
Non-life portfolio includes Property & Casualty (P&C) products covering risks such as fire damage, car accidents, personal and professional liability, windstorms, hail, and third-party liabilities. The P&C risk is primarily underwritten by Netherlands Non-life and catastrophic losses are partially mitigated to external reinsurers through NN Re.
The additional (physical) impact of climate change on the Insurance risk is not quantified yet but is expected to be limited because of the shorter time horizon of one year used to define the SCR. NN performs qualitative and quantitative risk assessments to assess the physical impact of climate change on various Non-life product lines based on the latest IPCC scenarios and taking into account various time horizons. We refer to the 'Anticipated financial effects' section of the Sustainability Statement of this report.
Insurance risk is mitigated through diversification between NN business units, between Mortality and Longevity risks within NN business units, appropriate pricing, underwriting and claims management policies, and risk transfer via reinsurance, which are used to reduce the Own Funds volatility.
The risks that are not sufficiently mitigated by diversification are managed through concentration and exposure limits and through reinsurance:
Retention limits for Life insurance risks are set per insured life and significant mortality events affecting multiple lives such as pandemics.
Retention is used to manage risk levels (such as Non-life reinsurance and morbidity reinsurance of the Japan Life portfolio).
Retention limits for Non-life insurance risks are set by line of business for catastrophic events and individual risks.
For NN Non-life natural catastrophic events are a major risk. One of the main natural catastrophe threatening the Netherlands is storms causing severe wind damage. NN Non-life has a reinsurance programme in place, offering protection against severe storms and other natural perils. In addition, reinsurance contracts per risk group are in place, covering NN Non-life against large one-off events such as fires.
The reinsurance programmes are in general facilitated by NN Re. In addition, reinsurance creates Credit risk which is managed in line with the Reinsurance Standard of NN.
Business risk include risks related to the management and development of the Insurance risk, Persistency risk, and Expense risks. These risks occur because of internal, industry, regulatory/political, or wider market factors.
The table below presents the PIM Business risk SCR for the Dutch NN insurance entities of NN as at 31 December 2025 and 31 December 2024, respectively.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Persistency risk | 815 | 605 |
Premium risk | 0 | 1 |
Expense risk | 1,427 | 1,529 |
Diversification business risk | -485 | -406 |
Business risk (IM entities) | 1,757 | 1,729 |
The Persistency risk SCR increased from EUR 605 million at the end of 2024 to EUR 815 million at the end of 2025 primarily due to model refinements.
The SCR for Expense risk decreased from EUR 1,529 million at the end of 2024 to EUR 1,427 million at the end of 2025. The decrease is due to increased interest rates. This SCR reflects the risk that future actual expenses exceed the expenses assumed in our best estimate provisions. Expense risk comprises Expense level and Expense inflation risks, materially driven by NN Life.
Persistency and Premium risks are managed through the product development, product approval and review processes and by ensuring that appropriate advice is given to the customer, not only at the point of sale but also during the lifetime of the product. The policyholder behaviour experience of in-force policies is assessed at least annually.
As part of its strategy, NN has put several programmes in place to improve the customer experience. These programmes improve the match between customer needs and the benefits and options provided by NN\u2019s products. Over time, NN\u2019s understanding and anticipation of the choice policyholders are likely to make, will improve, thereby decreasing the risk of a mismatch between actual and assumed policyholder behaviour.
Ongoing initiatives are in place to manage Expense risk throughout NN, especially in the Netherlands where company targets are in place to reduce expenses, thus, lowering Expense risk going forward. These initiatives seek to reduce expenses in line with the number of underlying contracts in place. Besides the already described mitigating actions, proper pricing, underwriting, claims management, and diversification are also risk mitigating actions for Business risk.
Life risk includes risks arising from the underwriting of life insurances of the business units applying Standard Formula and is split into Mortality risk, Longevity risk, Disability/Morbidity risk, Persistency risk, Expense risk, Revision risk, and Catastrophe risk. These risks refer to the adverse deviation from the best estimate liabilities due to the perils covered, policyholder behaviour and the processes used in the conduct of business.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Mortality risk | 109 | 104 |
Longevity risk | 52 | 59 |
Morbidity risk | 19 | 16 |
Expense risk | 355 | 356 |
Lapse risk | 1,140 | 997 |
Catastrophe risk | 128 | 118 |
Diversification life risk | -379 | -364 |
Life risk (SF entities) | 1,424 | 1,286 |
As shown in the table above, the Life risk SCR for the SF business units increased from EUR 1,286 million at the end of 2024 to EUR 1,424 million at the end of 2025 mainly due to modelling refinements and market movements.
The majority of Life risk is comprised of Lapse, Expense and Mortality risks (in Standard Formula entities) mainly from the international NN entities (Belgium, Poland, Spain, Greece).
The NN Standard Formula entities manage the Expense risk through detailed budgeting and monitoring the costs using activity-based costing.
Lapse risk management serves an important purpose for NN Standard Formula entities. When deviations from assumed lapse rates are observed over a prolonged period of time, a product review and further management actions are taken to address the underlying reasons.
Health risk arises from issuing health insurance contracts, which is divided in Similar to Life Techniques (SLT) risk, Non-Similar to Life Techniques (NSLT) risk and Catastrophe risk. SLT risk is associated to health obligations pursued on a similar technical basis to that of life insurance, while NSLT risk applies to health obligations not pursued on a similar technical basis to that of life insurance. These risks refer to the adverse deviation from the best estimate liabilities due to the perils covered, policyholder behaviour and the processes used in the conduct of business.
| \u00a0 | 2025 | 2024 |
|---|---|---|
SLT | 326 | 302 |
NSLT | 29 | 24 |
Catastrophe risk | 37 | 33 |
Diversification health risk | -39 | -34 |
Health risk (SF entities) | 353 | 325 |
As shown in the table above, the Health risk SCR of the business units applying Standard Formula increased from EUR 325 million at the end of 2024 to EUR 353 million at the end of 2025. The increase is mainly explained by portfolio development.
The majority of Health risk originates from international NN entities (Belgium, Poland, Slovakia, Romania, Hungary and Greece). They mitigate the risks by strict acceptance policies and stringent claims-handling procedures. An acceptance policy and internal control processes are developed for each product line maintained by those entities.
Non-life risk involves risks arising from the underwriting of Non-life insurance, which includes Premium and Reserve risk, Persistency risk and Catastrophic risk. These risks refer to the adverse deviation from the best estimate liabilities due to the perils covered, policyholder behaviour and the processes used in the conduct of business.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Premium and reserve risk | 111 | 83 |
Lapse risk | 21 | 19 |
Catastrophe risk | 81 | 35 |
Diversification non-life risk | -58 | -37 |
Non-life risk (SF entities) | 155 | 100 |
As shown in the table above, the Non-life risk SCR of the business units applying Standard Formula increased from EUR 100 million at the end of 2024 to EUR 155 million at the end of 2025 mainly due to portfolio development.
Non-life risk is mitigated through appropriate pricing and underwriting policies and through risk transfer via reinsurance. Most of the Non-life risk comes from ABN AMRO Non-life, and they manage the risk using various reinsurance contracts.
The tables below include all liabilities by maturity based on contractual, undiscounted cash flows.
Furthermore, the undiscounted future coupon interest on financial liabilities payable is included in a separate line and in the relevant maturity bucket. Derivative liabilities are included on a net basis if cash flows are settled net. For other derivative liabilities the contractual gross cash flow payable is included.
Reference is made to the Liquidity Risk paragraph in Note 48 Risk management for a description on how liquidity risk is managed.
2025 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Adjustment1 | Total |
|---|---|---|---|---|---|---|---|---|---|---|
Insurance contracts | 11,802 | 10,401 | 10,507 | 10,123 | 9,595 | 41,417 | 106,654 | \u00a0 | -59,559 | 140,940 |
Investment contracts | 62 | 66 | 64 | 62 | 59 | 276 | 211 | 3,189 | \u00a0 | 3,989 |
Reinsurance contracts | 4 | 2 | 2 | 3 | 3 | 18 | 132 | \u00a0 | -95 | 69 |
Debt instruments issued | \u00a0 | 600 | \u00a0 | \u00a0 | \u00a0 | 600 | \u00a0 | \u00a0 | -3 | 1,197 |
Subordinated debt2 | \u00a0 | \u00a0 | 850 | \u00a0 | \u00a0 | 1,500 | \u00a0 | \u00a0 | -2 | 2,348 |
Other borrowed funds | 4,729 | 801 | 1,005 | 499 | 456 | 1,664 | 721 | \u00a0 | \u00a0 | 9,875 |
Customer deposits | 11,054 | 1,333 | 832 | 743 | 655 | 2,045 | 1,253 | \u00a0 | \u00a0 | 17,915 |
Derivatives | 271 | 241 | 348 | 382 | 558 | 1,911 | 7,018 | \u00a0 | -6,369 | 4,360 |
Deferred tax liabilities | 119 | -21 | 62 | 8 | 53 | -15 | -757 | 1,167 | \u00a0 | 616 |
Other liabilities | 2,106 | -112 | 88 | 41 | 17 | 109 | 97 | 102 | \u00a0 | 2,448 |
Total liabilities | 30,147 | 13,311 | 13,758 | 11,861 | 11,396 | 49,525 | 115,329 | 4,458 | -66,028 | 183,757 |
Coupon interest due on financial liabilities | 339 | 403 | 342 | 314 | 293 | 1,065 | 1,297 | \u00a0 | \u00a0 | 4,053 |
2024 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Adjustment1 | Total |
|---|---|---|---|---|---|---|---|---|---|---|
Insurance contracts | 11,676 | 11,553 | 9,877 | 11,163 | 8,852 | 35,885 | 129,233 | \u00a0 | -70,698 | 147,541 |
Investment contracts | 77 | 69 | 67 | 64 | 63 | 292 | 263 | 2,964 | \u00a0 | 3,859 |
Reinsurance contracts | 10 | 4 | 3 | 3 | 4 | 19 | 115 | \u00a0 | -46 | 112 |
Debt instruments issued | \u00a0 | \u00a0 | 600 | \u00a0 | \u00a0 | 600 | \u00a0 | \u00a0 | -4 | 1,196 |
Subordinated debt2 | \u00a0 | \u00a0 | \u00a0 | 850 | \u00a0 | 1,500 | \u00a0 | \u00a0 | -4 | 2,346 |
Other borrowed funds | 2,799 | 790 | 798 | 987 | 493 | 940 | 1,180 | \u00a0 | \u00a0 | 7,987 |
Customer deposits | 11,010 | 1,214 | 863 | 603 | 562 | 1,921 | 1,301 | \u00a0 | \u00a0 | 17,474 |
Derivatives | 527 | 461 | 584 | 625 | 727 | 2,302 | 7,228 | \u00a0 | -8,783 | 3,671 |
Deferred tax liabilities | 191 | 11 | 24 | 39 | 20 | 41 | -648 | 1,086 | \u00a0 | 764 |
Other liabilities | 2,973 | 466 | 52 | 36 | 29 | 92 | 60 | 65 | \u00a0 | 3,773 |
Total liabilities | 29,263 | 14,568 | 12,868 | 14,370 | 10,750 | 43,592 | 138,732 | 4,115 | -79,535 | 188,723 |
Coupon interest due on financial liabilities | 211 | 356 | 337 | 286 | 260 | 1,037 | 1,433 | \u00a0 | \u00a0 | 3,920 |
The table below provides the expected maturity of the cash flows, risk adjustment and Contractual Service Margin remaining at the end of the reporting period. The maturity is based on contractual, undiscounted cash flows.
2025 | Estimates of the present value of future cash flows | Risk adjustment | Contractual service margin | Total General Model and Variable Fee Approach | Total Premium Allocation Approach | Total Insurance assets | Total Insurance liabilities |
|---|---|---|---|---|---|---|---|
Less than 1 year | 9,561 | 134 | 893 | 10,588 | 1,132 | 82 | 11,802 |
1-2 years | 9,037 | 115 | 760 | 9,912 | 422 | 67 | 10,401 |
2-3 years | 9,348 | 106 | 681 | 10,135 | 317 | 55 | 10,507 |
3-4 years | 9,121 | 99 | 619 | 9,839 | 239 | 45 | 10,123 |
4-5 years | 8,720 | 93 | 561 | 9,374 | 183 | 38 | 9,595 |
5-10 years | 38,452 | 381 | 2,023 | 40,856 | 421 | 140 | 41,417 |
Over 10 years | 102,320 | 692 | 3,311 | 106,323 | 191 | 140 | 106,654 |
Adjustments1 | -58,848 | -415 | \u00a0 | -59,263 | -209 | -87 | -59,559 |
Total | 127,711 | 1,205 | 8,848 | 137,764 | 2,696 | 480 | 140,940 |
2024 | Estimates of the present value of future cash flows | Risk adjustment | Contractual service margin | Total General Model and Variable Fee Approach | Total Premium Allocation Approach | Total Insurance assets | Total Insurance liabilities |
|---|---|---|---|---|---|---|---|
Less than 1 year | 9,660 | 174 | 687 | 10,521 | 1,119 | 36 | 11,676 |
1-2 years | 10,334 | 140 | 590 | 11,064 | 423 | 66 | 11,553 |
2-3 years | 8,864 | 110 | 529 | 9,503 | 316 | 58 | 9,877 |
3-4 years | 10,280 | 118 | 479 | 10,877 | 237 | 49 | 11,163 |
4-5 years | 8,085 | 124 | 440 | 8,649 | 181 | 22 | 8,852 |
5-10 years | 33,289 | 458 | 1,627 | 35,374 | 407 | 104 | 35,885 |
Over 10 years | 124,382 | 857 | 3,598 | 128,837 | 189 | 207 | 129,233 |
Adjustments1 | -69,563 | -692 | \u00a0 | -70,255 | -310 | -133 | -70,698 |
Total | 135,331 | 1,289 | 7,950 | 144,570 | 2,562 | 409 | 147,541 |
Amounts payable on demand were EUR 53,871 million as at 31 December 2025 (EUR 56,328 million as at 31 December 2024).
The assets not freely disposable of EUR 83 million (2024: EUR 77 million) relates to the mandatory reserve deposit at De Nederlandsche Bank and cash balances held at BNG Bank.
Assets relating to instruments lending are disclosed in Note 38 Transferred but not derecognised financial assets. Assets in securitisation programmes originated by NN Bank are disclosed in Note 43 Structured entities.
The assets not freely disposable of EUR 83 million (2024: EUR 77 million) relates to the mandatory reserve deposit at De Nederlandsche Bank and cash balances held at BNG Bank.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndBankBalancesAtCentralBanksExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i17833": { "value": "The majority of NN\u2019s financial assets that have been transferred, but do not qualify for derecognition, are debt instruments used in securities lending. NN retains substantially all risks and rewards of those transferred assets. The assets are transferred in return for cash collateral or other financial assets. Non-cash collateral is not recognised in the balance sheet. Cash collateral is recognised as an asset and an offsetting liability is established for the same amount as NN is obligated to return this amount upon termination of the lending arrangement.
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when NN has a current legally enforceable right to set off the recognised amounts and intends to either settle on a net basis or to realise the asset and settle the liability at the same time.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i18064": { "value": "In the normal course of business (excluding investment commitments) NN is party to activities whose risks are not reflected in whole or in part in the Consolidated annual accounts. In response to the needs of its customers, NN offers financial products related to loans. These products include traditional off-balance sheet credit-related financial instruments.
2025 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Total |
|---|---|---|---|---|---|---|---|---|---|
Commitments | 1,481 | 225 | 1 | \u00a0 | \u00a0 | \u00a0 | 16 | \u00a0 | 1,723 |
Guarantees | 18 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 18 |
Contingent liabilities and commitments | 1,499 | 225 | 1 | 0 | 0 | 0 | 16 | 0 | 1,741 |
2024 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Total |
|---|---|---|---|---|---|---|---|---|---|
Commitments | 1,281 | 92 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 22 | \u00a0 | 1,395 |
Guarantees | 18 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 18 |
Contingent liabilities and commitments | 1,299 | 92 | 0 | 0 | 0 | 0 | 22 | 0 | 1,413 |
Additionally, NN has committed amounts to investments of EUR 6,826 million (2024: EUR 5,649 million) where it is uncertain when those amounts will be invested.
NN has issued certain guarantees, other than those included in \u2018Insurance contracts\u2019, which are expected to expire without being drawn on and therefore does not necessarily represent future net cash outflows. In addition to the items included in \u2018Contingent liabilities\u2019, NN has issued guarantees as a participant in collective arrangements of national industry bodies and as a participant in government required collective guarantee schemes which apply in different countries.
During 2016, ING Group, NN\u2019s former parent company, sold its remaining stake in NN.
Therefore, ING Group has ceased to be a related party of NN in the course of 2016. The following agreements with ING Group are still relevant:
In 2012, ING Groep N.V., Voya Financial Inc. (formerly ING U.S., Inc.) and ING Insurance Eurasia N.V. entered into a master claim agreement to (a) allocate existing claims between these three parties and (b) agree on criteria for how to allocate future claims between the three parties. The master claim agreement contains further details on claim handling, conduct of litigation and dispute resolution.
ING Groep N.V. and NN Group N.V. have entered into an indemnification and allocation agreement, in which ING Group has agreed to indemnify NN for certain liabilities that relate to the business of or control over certain (former) U.S. and Latin American subsidiaries of NN in the period until 30 September 2013 or, if the relevant subsidiary was divested by NN after 30 September 2013, such later date of divestment. These liabilities mainly include contingent liabilities that may arise as a result of the initial public offering of ING U.S. (such as prospectus liability), the sales of the Latin American businesses (such as claims under warranties and other buyer protection clauses) and the liabilities for the claims concerning the performance of certain interest-sensitive products that were sold by a former subsidiary of NN in Mexico.
In the normal course of business (excluding investment commitments) NN is party to activities whose risks are not reflected in whole or in part in the Consolidated annual accounts. In response to the needs of its customers, NN offers financial products related to loans. These products include traditional off-balance sheet credit-related financial instruments.
2025 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Total |
|---|---|---|---|---|---|---|---|---|---|
Commitments | 1,481 | 225 | 1 | \u00a0 | \u00a0 | \u00a0 | 16 | \u00a0 | 1,723 |
Guarantees | 18 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 18 |
Contingent liabilities and commitments | 1,499 | 225 | 1 | 0 | 0 | 0 | 16 | 0 | 1,741 |
2024 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Total |
|---|---|---|---|---|---|---|---|---|---|
Commitments | 1,281 | 92 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 22 | \u00a0 | 1,395 |
Guarantees | 18 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 18 |
Contingent liabilities and commitments | 1,299 | 92 | 0 | 0 | 0 | 0 | 22 | 0 | 1,413 |
Additionally, NN has committed amounts to investments of EUR 6,826 million (2024: EUR 5,649 million) where it is uncertain when those amounts will be invested.
NN has issued certain guarantees, other than those included in \u2018Insurance contracts\u2019, which are expected to expire without being drawn on and therefore does not necessarily represent future net cash outflows. In addition to the items included in \u2018Contingent liabilities\u2019, NN has issued guarantees as a participant in collective arrangements of national industry bodies and as a participant in government required collective guarantee schemes which apply in different countries.
During 2016, ING Group, NN\u2019s former parent company, sold its remaining stake in NN.
Therefore, ING Group has ceased to be a related party of NN in the course of 2016. The following agreements with ING Group are still relevant:
In 2012, ING Groep N.V., Voya Financial Inc. (formerly ING U.S., Inc.) and ING Insurance Eurasia N.V. entered into a master claim agreement to (a) allocate existing claims between these three parties and (b) agree on criteria for how to allocate future claims between the three parties. The master claim agreement contains further details on claim handling, conduct of litigation and dispute resolution.
ING Groep N.V. and NN Group N.V. have entered into an indemnification and allocation agreement, in which ING Group has agreed to indemnify NN for certain liabilities that relate to the business of or control over certain (former) U.S. and Latin American subsidiaries of NN in the period until 30 September 2013 or, if the relevant subsidiary was divested by NN after 30 September 2013, such later date of divestment. These liabilities mainly include contingent liabilities that may arise as a result of the initial public offering of ING U.S. (such as prospectus liability), the sales of the Latin American businesses (such as claims under warranties and other buyer protection clauses) and the liabilities for the claims concerning the performance of certain interest-sensitive products that were sold by a former subsidiary of NN in Mexico.
In the normal course of business (excluding investment commitments) NN is party to activities whose risks are not reflected in whole or in part in the Consolidated annual accounts. In response to the needs of its customers, NN offers financial products related to loans. These products include traditional off-balance sheet credit-related financial instruments.
2025 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Total |
|---|---|---|---|---|---|---|---|---|---|
Commitments | 1,481 | 225 | 1 | \u00a0 | \u00a0 | \u00a0 | 16 | \u00a0 | 1,723 |
Guarantees | 18 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 18 |
Contingent liabilities and commitments | 1,499 | 225 | 1 | 0 | 0 | 0 | 16 | 0 | 1,741 |
2024 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Total |
|---|---|---|---|---|---|---|---|---|---|
Commitments | 1,281 | 92 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 22 | \u00a0 | 1,395 |
Guarantees | 18 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 18 |
Contingent liabilities and commitments | 1,299 | 92 | 0 | 0 | 0 | 0 | 22 | 0 | 1,413 |
Additionally, NN has committed amounts to investments of EUR 6,826 million (2024: EUR 5,649 million) where it is uncertain when those amounts will be invested.
NN has issued certain guarantees, other than those included in \u2018Insurance contracts\u2019, which are expected to expire without being drawn on and therefore does not necessarily represent future net cash outflows. In addition to the items included in \u2018Contingent liabilities\u2019, NN has issued guarantees as a participant in collective arrangements of national industry bodies and as a participant in government required collective guarantee schemes which apply in different countries.
During 2016, ING Group, NN\u2019s former parent company, sold its remaining stake in NN.
Therefore, ING Group has ceased to be a related party of NN in the course of 2016. The following agreements with ING Group are still relevant:
In 2012, ING Groep N.V., Voya Financial Inc. (formerly ING U.S., Inc.) and ING Insurance Eurasia N.V. entered into a master claim agreement to (a) allocate existing claims between these three parties and (b) agree on criteria for how to allocate future claims between the three parties. The master claim agreement contains further details on claim handling, conduct of litigation and dispute resolution.
ING Groep N.V. and NN Group N.V. have entered into an indemnification and allocation agreement, in which ING Group has agreed to indemnify NN for certain liabilities that relate to the business of or control over certain (former) U.S. and Latin American subsidiaries of NN in the period until 30 September 2013 or, if the relevant subsidiary was divested by NN after 30 September 2013, such later date of divestment. These liabilities mainly include contingent liabilities that may arise as a result of the initial public offering of ING U.S. (such as prospectus liability), the sales of the Latin American businesses (such as claims under warranties and other buyer protection clauses) and the liabilities for the claims concerning the performance of certain interest-sensitive products that were sold by a former subsidiary of NN in Mexico.
In the normal course of business (excluding investment commitments) NN is party to activities whose risks are not reflected in whole or in part in the Consolidated annual accounts. In response to the needs of its customers, NN offers financial products related to loans. These products include traditional off-balance sheet credit-related financial instruments.
2025 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Total |
|---|---|---|---|---|---|---|---|---|---|
Commitments | 1,481 | 225 | 1 | \u00a0 | \u00a0 | \u00a0 | 16 | \u00a0 | 1,723 |
Guarantees | 18 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 18 |
Contingent liabilities and commitments | 1,499 | 225 | 1 | 0 | 0 | 0 | 16 | 0 | 1,741 |
2024 | Less than 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | Over 10 years | Maturity not applicable | Total |
|---|---|---|---|---|---|---|---|---|---|
Commitments | 1,281 | 92 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 22 | \u00a0 | 1,395 |
Guarantees | 18 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 18 |
Contingent liabilities and commitments | 1,299 | 92 | 0 | 0 | 0 | 0 | 22 | 0 | 1,413 |
Additionally, NN has committed amounts to investments of EUR 6,826 million (2024: EUR 5,649 million) where it is uncertain when those amounts will be invested.
NN has issued certain guarantees, other than those included in \u2018Insurance contracts\u2019, which are expected to expire without being drawn on and therefore does not necessarily represent future net cash outflows. In addition to the items included in \u2018Contingent liabilities\u2019, NN has issued guarantees as a participant in collective arrangements of national industry bodies and as a participant in government required collective guarantee schemes which apply in different countries.
During 2016, ING Group, NN\u2019s former parent company, sold its remaining stake in NN.
Therefore, ING Group has ceased to be a related party of NN in the course of 2016. The following agreements with ING Group are still relevant:
In 2012, ING Groep N.V., Voya Financial Inc. (formerly ING U.S., Inc.) and ING Insurance Eurasia N.V. entered into a master claim agreement to (a) allocate existing claims between these three parties and (b) agree on criteria for how to allocate future claims between the three parties. The master claim agreement contains further details on claim handling, conduct of litigation and dispute resolution.
ING Groep N.V. and NN Group N.V. have entered into an indemnification and allocation agreement, in which ING Group has agreed to indemnify NN for certain liabilities that relate to the business of or control over certain (former) U.S. and Latin American subsidiaries of NN in the period until 30 September 2013 or, if the relevant subsidiary was divested by NN after 30 September 2013, such later date of divestment. These liabilities mainly include contingent liabilities that may arise as a result of the initial public offering of ING U.S. (such as prospectus liability), the sales of the Latin American businesses (such as claims under warranties and other buyer protection clauses) and the liabilities for the claims concerning the performance of certain interest-sensitive products that were sold by a former subsidiary of NN in Mexico.
NN is involved in litigation and arbitration proceedings in the Netherlands and in a number of foreign jurisdictions, involving claims by and against NN which arise in the ordinary course of its business, including in connection with its activities as insurer, lender, seller, broker-dealer, underwriter, issuer of instruments and investor and its position as employer and taxpayer. In certain of such proceedings, very large or indeterminate amounts are sought, including punitive and other damages. While it is not feasible to predict or determine the ultimate outcome of all pending or threatened legal and regulatory proceedings, NN believes that some of the proceedings set out below may have, or have in the recent past had, a significant effect on the financial condition, profitability or reputation of NN.
Because of the geographic spread of its business, NN may be subject to tax audits in numerous jurisdictions at any point in time. Although NN believes that it has adequately provided for its tax positions, the ultimate outcome of these audits may result in liabilities that are different from the amounts recognised.
On 9 January 2024, NN announced that it agreed a settlement with interest groups Consumentenclaim, Woekerpolis.nl, Woekerpolisproces, Wakkerpolis, and Consumentenbond, regarding unit-linked insurance products sold in the Netherlands by Nationale-Nederlanden, including Delta Lloyd and ABN AMRO Levensverzekering. This settlement was subject to a 90% acceptance rate of affiliated policyholders that have received an individual proposal for compensation. On 6 October 2025, NN announced that the settlement with interest groups regarding unit-linked insurance products sold in the Netherlands is final, as 90% of the affiliated policyholders accepted their individual proposal for compensation. All legal proceedings initiated by the aforementioned interest groups will be discontinued upon completion of the execution of the settlement, and no new legal proceedings may be initiated by these interest groups and their affiliated parties. The settlement costs are covered by a provision of approximately EUR 360 million recognised in the fourth quarter of 2023. This includes EUR 60 million for hardship cases and customers unaffiliated with one of the interest groups who have not previously received compensation.
On 10 April 2019, NN filed a claim with the International Centre for Settlement of Investment Disputes (ICSID) under the Bilateral Investment Treaty between Argentina and the Netherlands, in order to resolve a dispute with the Argentine Republic. The dispute relates to the nationalisation of Or\u00edgenes \u2013 NN\u2019s former pension fund manager in Argentina - by the Argentine Government in 2008. These proceedings may last for several years. As the case is still pending, it is unclear at this stage whether and to what extent any compensation will be granted to NN and therefore no compensation has been recognised.
NN has issued certain guarantees, other than those included in \u2018Insurance contracts\u2019, which are expected to expire without being drawn on and therefore does not necessarily represent future net cash outflows. In addition to the items included in \u2018Contingent liabilities\u2019, NN has issued guarantees as a participant in collective arrangements of national industry bodies and as a participant in government required collective guarantee schemes which apply in different countries.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialGuaranteesExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i18180": { "value": "In September 2024, NN announced that it had reached agreement to sell its Turkish operations (NN Hayat ve Emeklilik, included in the segment Insurance Europe) to Zurich T\u00fcrkiye. The sale relates to assets and liabilities with a book value of EUR 43 million and EUR 31 million respectively at 31 December 2024. The transaction was subject to regulatory and antitrust approval and closed in January 2025.
The transaction did not have significant impact on IFRS equity and the solvency ratio. At the moment of closing (i.e. in the first half 2025 results), the unrealised revaluation and foreign currency translation in equity that relate to Turkey are recognised in the profit and loss account as part of the result on divestment; at 31 December 2024 these unrealised reserves in equity amounted to EUR 135 million (loss on divestment).
As of the announcement, NN\u2019s Turkish operations meet the IFRS criteria for \u2018Held for sale\u2019 presentation; based on materiality, NN does not present the above-mentioned assets and liabilities in scope of the transaction separately in the balance sheet as Assets/Liabilities Held for sale. Presentation as held for sale would not have had a significant impact on equity or net result.
NN\u2019s activities involve transactions with structured entities in the normal course of business. A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed through contractual arrangements. NN\u2019s involvement in these entities varies and includes both debt financing and equity financing of these entities as well as other relationships. Based on its accounting policies, as disclosed in Note 1 Accounting policies, NN establishes whether these involvements result in no significant influence, significant influence, joint control or control over the structured entity.
In the normal course of business, NN enters into various transactions with related parties. Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions. Related parties of NN include, among others, associates, joint ventures, key management personnel and the defined benefit and defined contribution plans. Transactions between related parties have taken place on an arm\u2019s length basis and include distribution agreements, sourcing and procurement agreements, human resources-related arrangements, and rendering and receiving of services.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i18216": { "value": "In the normal course of business, NN enters into various transactions with related parties. Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions. Related parties of NN include, among others, associates, joint ventures, key management personnel and the defined benefit and defined contribution plans. Transactions between related parties have taken place on an arm\u2019s length basis and include distribution agreements, sourcing and procurement agreements, human resources-related arrangements, and rendering and receiving of services.
There are no significant provisions for doubtful debts or individually significant bad debt expenses recognised on outstanding balances with related parties.
NN identifies the following (groups of) related party transactions:
Transactions with members of NN\u2019s Executive Board, Management Board and Supervisory Board are considered to be transactions with key management personnel. Reference is made to Note 45 Key management personnel compensation for more information on these transactions.
Entities over which NN can exercise control are considered to be related parties of NN. These entities are consolidated by NN. Transactions with or between entities controlled by NN are eliminated in the Consolidated annual accounts. More information on the NN originated liquidity management securitisation programmes is disclosed in Note 43 Structured entities.
Associates and joint ventures of NN are related parties of NN. The transactions with associates and joint ventures can be summarised as follows:
| \u00a0 | 2025 | 2024 |
|---|---|---|
Assets | 70 | 83 |
Income | 4 | 4 |
Entities administering or executing post-employment benefit plans of the employees of NN are considered to be related parties of NN. This relates to NN\u2019s pensions funds, i.e. the ING Group DB pension fund (joint with ING Bank), the Stichting Pensioensfonds Delta Lloyd, the NN CDC pension fund and BeFrank PPI in the Netherlands. For more information on the post-employment benefit plans, reference is made to Note 26 Non-attributable operating expenses.
Transactions with key management personnel (Executive Board, Management Board and Supervisory Board) are transactions with related parties. These transactions are disclosed in more detail as required by Part 9 Book 2 of the Dutch Civil Code in sections II and III in the remuneration report in the financial report. These sections of the remuneration report are therefore part of the annual accounts.
In EUR thousand | Executive Board | Management Board | Total |
|---|---|---|---|
Fixed compensation: | \u00a0 | \u00a0 | \u00a0 |
\u2013 base salary (cash) | 2,979 | 5,035 | 8,014 |
\u2013 base salary (fixed shares) | 745 | 1,259 | 2,004 |
\u2013 pension costs1 | 57 | 172 | 229 |
\u2013 individual saving allowance1 | 803 | 1,274 | 2,077 |
Variable compensation: | \u00a0 | \u00a0 | \u00a0 |
\u2013 upfront cash | 131 | 212 | 343 |
\u2013 upfront shares | 131 | 212 | 343 |
\u2013 deferred cash | 197 | 318 | 515 |
\u2013 deferred shares | 197 | 318 | 515 |
Fixed and variable compensation | 5,240 | 8,800 | 14,040 |
Other benefits | 165 | 187 | 352 |
Employer cost social security2 | 113 | 237 | 350 |
Total compensation | 5,518 | 9,224 | 14,742 |
In the table above, \u2018Executive Board\u2019 refers to the two members of the Executive Board as at 31 December 2025. The two members of the Executive Board are also members of the Management Board. In the table above, \u2018Management Board\u2019 refers to the six members of the Management Board as at 31 December 2025, i.e. those members that are not member of the Executive Board. In the table above \u2018Total\u2019 refers to all members of the Management Board during 2025.
Remuneration of the members of the Executive Board and the Management Board is recognised in the profit and loss account in \u2018Staff expenses\u2019 as part of \u2018Non-attributable operating expenses\u2019. The total remuneration as disclosed in the table above (for 2025: EUR 14.7 million) includes all variable remuneration related to the performance year 2025. Under IFRS-EU, certain components of variable remuneration are not recognised in the profit and loss account directly but are allocated over the vesting period of the award. The comparable amount recognised in staff expenses in 2025 and therefore included in \u2018Total expenses\u2019 in 2025, relating to the fixed expenses of 2025 and the vesting of variable remuneration of 2024 and earlier performance years, is EUR 14.3 million.
As at 31 December 2025, members of the Executive Board and Management Board held a total of 154,883 NN Group N.V. shares.
In 2025, 15,624 share awards on NN Group N.V. (both deferred and upfront) were granted to the Executive Board and Management Board.
In EUR thousand | Supervisory Board |
|---|---|
Fixed fees | 816 |
Expense allowances | 63 |
Compensation Supervisory Board | 879 |
As at 31 December 2025, members of the Supervisory Board held no NN Group N.V. shares.
In EUR thousand | Amount outstanding 31 December | Average interest rate | Repayments |
|---|---|---|---|
Management Board members | 223 | 1.90% | 126 |
Loans and advances | 223 | \u00a0 | 126 |
As at 31 December 2025, no loans and advances were provided to members of the Executive Board and Supervisory Board.
In EUR thousand | Executive Board | Management Board | Total |
|---|---|---|---|
Fixed compensation: | \u00a0 | \u00a0 | \u00a0 |
\u2013 base salary (cash) | 2,733 | 4,563 | 7,296 |
\u2013 base salary (fixed shares) | 683 | 1,141 | 1,824 |
\u2013 pension costs1 | 58 | 173 | 231 |
\u2013 individual saving allowance1 | 732 | 1,136 | 1,868 |
Variable compensation: | \u00a0 | \u00a0 | \u00a0 |
\u2013 upfront cash | 124 | 167 | 291 |
\u2013 upfront shares | 124 | 167 | 291 |
\u2013 deferred cash | 186 | 250 | 436 |
\u2013 deferred shares | 186 | 250 | 436 |
Fixed and variable compensation | 4,826 | 7,847 | 12,673 |
Other benefits | 149 | 296 | 445 |
Employer cost social security2 | 108 | 215 | 323 |
Total compensation | 5,083 | 8,358 | 13,441 |
In the table above, \u2018Executive Board\u2019 refers to the two members of the Executive Board as at 31 December 2024. The two members of the Executive Board are also members of the Management Board. In the table above, \u2018Management Board\u2019 refers to the six members of the Management Board as at 31 December 2024, i.e. those members that are not member of the Executive Board. In the table above \u2018Total\u2019 refers to all members of the Management Board during 2024.
Remuneration of the members of the Executive Board and the Management Board is recognised in the profit and loss account in \u2018Staff expenses\u2019 as part of \u2018Non-attributable operating expenses\u2019. The total remuneration as disclosed in the table above (for 2024: EUR 13.4 million) includes all variable remuneration related to the performance year 2024. Under IFRS-EU, certain components of variable remuneration are not recognised in the profit and loss account directly but are allocated over the vesting period of the award. The comparable amount recognised in staff expenses in 2024 and therefore included in \u2018Total expenses\u2019 in 2024, relating to the fixed expenses of 2024 and the vesting of variable remuneration of 2023 and earlier performance years, is EUR 13.3 million.
As at 31 December 2024, members of the Executive Board and Management Board held a total of 166,511 NN Group N.V. shares.
In 2024, 18,306 share awards on NN Group N.V. (both deferred and upfront) were granted to the Executive Board and Management Board.
In EUR thousand | Supervisory Board |
|---|---|
Fixed fees | 801 |
Expense allowances | 63 |
Compensation Supervisory Board | 864 |
As at 31 December 2024, members of the Supervisory Board held no NN Group N.V. shares.
In EUR thousand | Amount outstanding 31 December | Average interest rate | Repayments |
|---|---|---|---|
Management Board members | 349 | 2.34% | 3 |
Loans and advances | 349 | \u00a0 | 3 |
As at 31 December 2024, no loans and advances were provided to members of the Executive Board and Supervisory Board.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Audit fees | 23 | 23 |
Audit related fees | 2 | 2 |
Fees of auditors NN Group N.V. | 25 | 25 |
Fees as disclosed above relate to the network of the NN\u2019s auditors and are the amounts related to the respective years, i.e. on an accrual basis (excluding VAT).
Auditor fees are included in \u2018External advisory fees\u2019 as part of the Other operating expense.
On 15 January 2026, the first call date, NN called and redeemed the outstanding EUR 237 million of undated subordinated notes, issued in 2014. NN announced the early redemption on 16 December 2025.
On 12 February 2026, NN announced that it will execute an open market share buyback programme for an amount of EUR 350 million. The programme will be executed within ten months and commenced on 2 March 2026. The share buyback will be deducted in full from Solvency II Own Funds in the first half of 2026 and is estimated to reduce NN\u2019s Solvency II ratio by approximately 4%-points.
The goal of NN\u2019s capital and liquidity management is to adequately capitalise NN and its operating entities at all times to meet the interests of our stakeholders, including our customers and shareholders. The balance sheet is assessed in line with our capital management framework which is based on regulatory, economic and rating agency requirements. NN closely monitors and manages the following metrics: Own Funds/Solvency Capital Requirement (SCR), cash capital at the holding company, financial leverage, fixed cost coverage, capital generation and liquidity.
The NN Capital Management and Corporate Treasury department reports to the NN CFO. Activities of the department are executed on the basis of established policies, guidelines and procedures.
Capital Management is responsible for the sufficient capitalisation of NN entities, which involves the management, planning and allocation of capital within NN. Corporate Treasury is responsible for the management and execution of debt capital market transactions, term (capital) funding, cash management and risk management transactions.
NN manages its capital along a three-pillar framework taking into account the solvency positions at NN and its operating entities, cash capital at holding, and financial and debt metrics:
NN defines a comfort zone between 150%-200% Group Solvency ratio where NN intends to pay a progressive dividend per share and execute an annual share buyback. In the case of a Group Solvency ratio sustainably above 200%, there is an opportunity for incremental increases of the share buyback. NN aims to capitalise its operating entities adequately at all times. Operating entities have to comply with the local statutory capital frameworks that are under supervision of local regulators. To ensure adequate capitalisation, they are managed to commercial capital target levels, which are set in accordance with the risk associated with the business activities, commercial requirements and other relevant factors. The commercial capital target levels are set in local legal entity capital policies and approved by the Management Board of NN. Capital adequacy is ensured through the capital planning process which starts with the annual budgeting process in which a capital plan is prepared for NN and its operating entities with a time horizon of 5 years. NN\u2019s risk appetite statements, as further described in Note 48 Risk management, drive the target setting and are cascaded down to the operating entities in line with NN\u2019s risk management strategy. Other important factors which are considered in the capital plan are efficient capital allocation, the cost of capital and capital generation. Capital positions of operating entities are closely monitored and, if necessary, measures are taken to ensure capital adequacy. At the end of 2025, all operating entities were capitalised above their local regulatory requirements.
In addition, cash capital is held at the holding company to cover capital needs of the entities after a 1-in-20 year stress event and to cover financial leverage costs and holding company expenses for a period of at least 12 months. The free cash flow to the holding is the cash made available to NN and is driven by remittances and capital injections with subsidiaries, financial leverage costs and holding company expenses. This can be distributed to shareholders (reference is made to Note 11 Equity for information on distributable reserves), used to reduce debt or for other corporate purposes. The free cash flow to the holding is closely monitored and forecasted on a regular basis.
NN aims to maintain a financial leverage and fixed-cost coverage ratio consistent with a single \u2018A\u2019 financial strength rating. Financial leverage measures the amount of debt that NN issued to capitalise its businesses. Debt used for funding of operating activities or liquidity needs is not considered financial leverage. The fixed-cost coverage ratio measures the ability of NN to pay its financing expenses and is defined as the earnings before interest and tax (EBIT) divided by interest before tax on financial leverage. Special items, revaluations on derivatives that are non-eligible for hedge accounting, market and other impacts and amortisation of acquisition intangibles are excluded from EBIT.
NN monitors and manages its liquidity risk based on certain severe stress scenarios, assessed by operating entities and aggregated at the group level. Liquidity positions are periodically reported and monitored both on an individual entity and on a consolidated basis.
NN measures liquidity risk as the ratio of available over required liquidity in a stress event at a one-year horizon. At 31 December 2025, the liquidity position of all entities was adequate (reference is made to Note 48 Risk management for more information on liquidity risk management).
For the Banking business, the Dutch Central Bank (DNB) requires an annual internal evaluation of capital adequacy, liquidity position and the risk management framework, including stress testing. This internal evaluation is performed using an Internal Capital and Liquidity Adequacy Assessment Process (ICAAP and ILAAP) and reviewed by DNB in its Supervisory Review & Evaluation Process (SREP). The ICAAP, ILAAP, and SREP show that NN Bank has a robust capital and liquidity position.
NN has an undrawn syndicated revolving credit facility of EUR 1.9 billion. In October 2025 the maturity of the revolving credit facility was extended with one year to 2029. In 2024 and 2025, no amounts were drawn under the revolving credit facility.
On 20 February 2025, NN announced an open market share buyback programme for an amount of EUR 300 million within 10 months, which commenced on 3 March 2025. The share buyback programme was completed on 31 December 2025.
On 11 March 2025, NN issued EUR 1 billion of undated subordinated notes. The EUR 1 billion undated subordinated notes are first callable on 11 September 2034. The coupon is fixed at 5.75% per annum until the first coupon reset date on 11 March 2035 and will be reset every fifth year thereafter. The undated subordinated notes qualify as restricted Tier 1 regulatory capital.
On 12 March 2025, the tender offer announced by NN on 3 March 2025 was settled. NN repurchased EUR 763 million of the outstanding EUR 1 billion undated subordinated notes issued in 2014. On 16 December 2025, NN announced the early redemption of the remaining EUR 237 million notional of these notes on the first call date 15 January 2026, after which the notes were repaid.
On 27 May 2025, NN paid a 2024 final dividend of EUR 2.16 per ordinary share, equivalent to EUR 574 million in total. The 2024 final dividend was fully paid in cash.
On 20 August 2025, NN paid a 2025 interim dividend of EUR 1.38 per ordinary share, equivalent to EUR 365 million in total. The 2025 interim dividend was fully paid in cash.
Solvency II is the regulatory framework for (re-)insurance undertakings and groups domiciled in the EU.
Under the Solvency II regime, required capital (Solvency Capital Requirement) is risk-based and calculated as the post-tax value-at-risk at the confidence interval of 99.5% on a one-year horizon. Available capital (Own Funds) is determined as the excess of assets over liabilities, both based on economic valuations, plus qualifying subordinated debt. The EU Solvency II directive requires that (re-)insurance undertakings and groups hold sufficient Eligible Own Funds to cover the SCR.
NN is the holding company of licensed insurers and banking businesses. Regulated entities which from local regulatory perspective are not subject to the Solvency II regime (e.g. pension funds in Central Europe, NN Bank, BeFrank and BeFrank PPI) are included in Own Funds based on their local available capital and in SCR based on required capital defined by sectoral supervisory rules. NN Life Japan is included in Own Funds and SCR based on its available and required capital determined according to the local solvency regime recognised by the European Commission as provisionally equivalent. NN is in the process of expanding the Partial Internal Model (PIM) to include NN Life Japan, which is subject to regulatory approval. The impact on the Group solvency ratio is not expected to be material.
NN uses the Partial Internal Model to calculate capital requirements under Solvency II. The group capital model is named as such due to the fact that an Internal Model is used to calculate the capital requirements for the Dutch insurance entities (namely NN Life, NN Non-life and NN Re in the Netherlands), while the Standard Formula is used to calculate capital requirements for operational risk (across the group), for the international insurance entities that fall under Solvency II, and for ABN AMRO Non-life.
Further details on the NN capital requirements at 31 December 2025 are provided in Note 48 Risk management.
After a long period of negotiations between the European Commission, the European Council and the European Parliament, a revised Solvency II directive (Level I) was published in the Official Journal of 8 January 2025. The amended regulation will be effective as of 30 January 2027, which means that reporting after this date will reflect the changes from the Solvency II 2020 review. A public consultation on the delegated acts (Level II) was held in the summer of 2025. This process has been finalised in February 2026 with the approval of the proposed texts from the European Commission by the European Parliament and European Council. Some aspects in the agreement are not detailed out in the Solvency II directive and delegated acts but will be clarified later in the process. The revised Solvency II directive and delegated acts form the basis for the revision of the Level III regulation as well as some of the Level II regulation, which can lead to further changes. Given current market conditions it is expected that for NN the total impact on the Solvency II ratio will be broadly neutral after taking into account management actions. If however markets or specifications of regulations change, this could potentially change the assumed impact. Based on the aforementioned, NN remains comfortable with its solvency position and does not expect changes to its dividend policy.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Shareholders\u2019 equity | 19,078 | 19,831 |
Minority interest | 93 | 85 |
Elimination of intangible assets | -1,154 | -1,197 |
Valuation differences on assets | -1,610 | -1,362 |
Valuation differences on liabilities, including insurance and investment contracts | -692 | -4,294 |
Deferred tax effect on valuation differences | 662 | 1,516 |
Difference in treatment of non-Solvency II regulated entities | -93 | -12 |
Excess assets/liabilities | 16,285 | 14,567 |
Qualifying subordinated debt | 4,120 | 4,188 |
Foreseeable dividends and distributions | -757 | -683 |
Basic Own Funds | 19,648 | 18,072 |
Non-available Own Funds | 377 | 867 |
Non-eligible Own Funds | \u00a0 | 179 |
Eligible Own Funds (a) | 19,271 | 17,026 |
\u2013 of which Tier 1 unrestricted | 12,344 | 9,578 |
\u2013 of which Tier 1 restricted | 1,741 | 1,783 |
\u2013 of which Tier 2 | 2,364 | 2,361 |
\u2013 of which Tier 3 | 751 | 1,105 |
\u2013 of which non-Solvency II regulated entities | 2,071 | 2,199 |
Solvency Capital Requirements (b) | 8,758 | 8,786 |
\u2013 of which from Solvency II entities | 7,450 | 7,363 |
\u2013 of which from non-Solvency II entities | 1,307 | 1,423 |
NN Solvency II ratio (a/b)1 | 220% | 194% |
NN was adequately capitalised at 31 December 2025 with a Solvency II ratio of 220% based on the Partial Internal Model.
The NN Solvency II ratio increased to 220% from 194% at the end of 2024, mainly driven by operating capital generation, positive market impacts and other changes, partly offset by capital flows to shareholders. Market impacts mainly reflect movements in interest rates and spreads on government bonds and mortgages, partly offset by negative equity variance. Other changes mainly consist of the positive impacts of a non-available own funds methodology update and Basel IV implementation at NN Bank, as well as a longevity reinsurance transaction executed by NN Life in the first half of 2025, partly offset by model and assumption changes.
Eligible Own Funds increased to EUR 19,271 million at 31 December 2025 from EUR 17,026 million at 31 December 2024. The increase was mainly driven by operating capital generation, the aforementioned positive market impacts and the impact of a non-available own funds methodology update, partly offset by capital flows to shareholders.
The SCR of NN decreased to EUR 8,758 million at 31 December 2025 from EUR 8,786 million at 31 December 2024. The decrease was mainly driven by the impact of Basel IV implementation at NN Bank, asset portfolio changes, positive market impacts, as well as operating capital generation, partly offset by model and assumption changes. Market impacts mainly reflect movements in interest rates, partly offset by narrowing of spreads on government bonds.
Interest rate | Issue1 | Year of issue | Notional | First call date | Due date | Own Funds tier | Solvency II value | |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2025 | 2024 |
4.500% | NN Group N.V.2 | 2014 | 237 | 15 January 2026 | Perpetual | Tier 1 | \u00a0 | 1,011 |
4.625% | NN Group N.V. | 2017 | 850 | 13 January 2028 | 13 January 2048 | Tier 2 | 860 | 849 |
5.250% | NN Group N.V. | 2022 | 500 | 30 August 2032 | 1 March 2043 | Tier 2 | 501 | 510 |
6.000% | NN Group N.V. | 2023 | 1,000 | 3 May 2033 | 3 November 2043 | Tier 2 | 1,018 | 1,047 |
6.375% | NN Group N.V.3 | 2024 | 750 | 12 September 2030 | Perpetual | Tier 1 | 762 | 771 |
5.750% | NN Group N.V.3 | 2025 | 1,000 | 11 September 2034 | Perpetual | Tier 1 | 979 | \u00a0 |
The undated subordinated notes issued in 2014 with outstanding notional amount of EUR 237 million at year-end 2025 (EUR 1 billion outstanding notional at year-end 2024) were excluded from NN own funds at year-end 2025 following the early redemption notice on 16 December 2025. The notes were redeemed on the first call date of 15 January 2026.
The dated subordinated notes issued in 2017 with a notional amount of EUR 850 million have a coupon of 4.625%, maturity date on 13 January 2048, and are fully paid in. NN has the right to redeem these notes on the first call date on 13 January 2028 or on any interest payment date thereafter. These subordinated notes qualify as Tier 2 capital.
The dated subordinated notes issued in 2022 with a notional amount of EUR 500 million have a coupon of 5.25%, maturity date on 1 March 2043, and are fully paid in. It was the first issuance under NN\u2019s Sustainability Bond Framework. NN has the right to redeem these notes on the first call date of 30 August 2032 or any other interest payment date thereafter. These subordinated notes qualify as Tier 2 capital.
The dated subordinated notes issued in 2023 with a notional amount of EUR 1 billion have a coupon of 6.00%, maturity date on 3 November 2043, and are fully paid in. It was the second issuance under NN\u2019s Sustainability Bond Framework. NN has the right to redeem these notes on the first call date of 3 May 2033 or any other interest payment date thereafter. These subordinated notes qualify as Tier 2 capital.
The undated subordinated notes issued in 2024 with a notional amount of EUR 750 million have a coupon of 6.375% and are fully paid in. NN has the right to redeem these notes on the first call date on 12 September 2030 or on any interest payment date thereafter. These subordinated notes qualify as Restricted Tier 1 capital.
The undated subordinated notes issued in 2025 with a notional amount of EUR 1 billion have a coupon of 5.750% and are fully paid in. NN has the right to redeem these notes on the first call date on 11 September 2034 or on any interest payment date thereafter. These subordinated notes qualify as Restricted Tier 1 capital.
NN Own Funds are classified into three tiers as follows:
The excess of assets over liabilities on the basis of consolidated accounts excluding net Deferred Tax Asset is classified as (unrestricted) Tier 1.
The proportional share in the Own Funds of NN Bank is classified as (unrestricted) Tier 1 with the exception of the subordinated loans which are classified as Tier 2.
The proportional share in the Own Funds of other financial sector entities, BeFrank and pension funds in Central Europe is classified as (unrestricted) Tier 1.
The proportional share in the Eligible Own Funds of NN Life Japan is classified as (unrestricted) Tier 1 (European Commission recognised the solvency regime applied to the insurance undertakings in Japan as provisionally equivalent to Solvency II according to Commission Delegated Decision (EU) 2016/310 of 26 November 2015).
Undated subordinated notes are classified as (restricted) Tier 1 including those based on the transitional provisions (grandfathering).
Dated subordinated debt is classified as Tier 2.
The Net Deferred Tax Asset (Deferred tax assets and liabilities are offset only where such assets and liabilities relate to taxes levied by the same tax authority on the same taxable undertaking) is classified as Tier 3.
As at 31 December 2025 and 2024, NN had no ancillary Own Funds.
There are a number of regulatory restrictions on the amounts classified as Restricted Tier 1, Tier 2 and Tier 3 capital. The following restrictions have to be taken into account:
Restricted Tier 1 capital cannot exceed 20% of the total Tier 1 amount.
The proportion of Tier 1 items in the Eligible Own Funds should be higher than one third of the total amount of Eligible Own Funds.
Tier 2 and Tier 3 capital together cannot exceed 50% of the SCR.
Tier 3 capital cannot exceed 15% of the Solvency Capital Requirements.
Tier 3 capital cannot exceed one third of the total amount of Eligible Own Funds.
The application of the regulatory restrictions as at 31 December 2025 is reflected in the table below.
| \u00a0 | Available | Eligible | Available | Eligible | Eligibility restriction |
|---|---|---|---|---|---|
Tier 1 | 14,085 | 14,085 | 11,361 | 11,361 | More than one third of total EOF |
Of which: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u2013 Unrestricted Tier 1 | 12,344 | 12,344 | 9,578 | 9,578 | Not applicable |
\u2013 Restricted Tier 1 | 1,741 | 1,741 | 1,783 | 1,783 | Less than 20% of Tier 1 |
Tier 2 + Tier 3 | 3,115 | 3,115 | 3,645 | 3,465 | Less than 50% of SCR |
Tier 2 | 2,364 | 2,364 | 2,361 | 2,361 | \u00a0 |
Tier 3 | 751 | 751 | 1,284 | 1,105 | Less than 15% of SCR; |
Non-Solvency II regulated entities | 2,071 | 2,071 | 2,199 | 2,199 | \u00a0 |
Total Own Funds | 19,271 | 19,271 | 17,205 | 17,026 | \u00a0 |
Solvency II limits the inclusion in Group Own Funds of solo own fund items that cannot effectively be made available to cover the Group SCR. These are own fund items of related undertakings subject to legal and regulatory constraints that restrict either their ability to absorb losses within the group (fungibility) within nine months or the transferability of assets. Non-available own fund items are included in NN Own Funds only to the extent that they cover the contribution of the respective related undertaking to the Group SCR.
Based on NN\u2019s assessment, constraints on fungibility and transferability may apply to:
Differences between valuations of assets and liabilities under Solvency II principles and the valuation principles used by related undertakings for their local statutory accounts.
Own fund items of NN Japan Life which are not part of shareholders\u2019 equity.
Own funds of NN Bank held to meet Pillar II guidance issued by regulator.
Transitional measures on risk-free interest rates.
Legal reserves required under local company law.
Amounts equal to the value of net deferred tax assets.
Any minority interest in a related undertaking.
As at 31 December 2024, deductions related to non-available own fund items amounted to EUR 867 million. Following management\u2019s assessment that certain constraints on fungibility and transferability are removable, the corresponding deductions for 31 December 2025 decreased to EUR 377 million.
NN holds a cash capital position at the holding company to cover capital needs of the entities after a 1-in-20 year stress event and to cover financial leverage costs and holding company expenses for a period of at least 12 months. Cash capital is defined as net current assets available at the holding company. NN is comfortable with a cash capital position at the holding company in the range of EUR 0.5 billion and EUR 1.5 billion. A related metric is the free cash flow at the holding which is defined as the change in the cash capital position at the holding company over the period, excluding acquisitions, divestments, and capital transactions with shareholders and debtholders.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Cash capital position at the holding company - opening balance | 1,271 | 971 |
Remittances from subsidiaries1 | 2,014 | 1,877 |
Capital injections into subsidiaries2 | -17 | -91 |
Other3 | -376 | -267 |
Free cash flow to the holding4 | 1,620 | 1,519 |
Cash divestment proceeds | 21 | 0 |
Acquisitions | -48 | 0 |
Capital flow to shareholders | -1,239 | -1,213 |
Increase/decrease in debt and loans | 217 | -6 |
Cash capital position at the holding company - closing balance | 1,843 | 1,271 |
The cash capital position at the holding company increased to EUR 1,843 million at the end of 2025 from EUR 1,271 million at the end of 2024. This reflects remittances from subsidiaries and net cash proceeds from debt transactions in the first half of 2025, partly offset by capital flows to shareholders as well as other movements including holding company expenses, interest on loans and debt and other holding company cash flows. Capital flows to shareholders comprise the 2024 final dividend of EUR\u202f574 million, the 2025 interim dividend of EUR\u202f365 million and the repurchase of EUR\u202f300 million of own shares as part of the share buyback programme commenced in March 2025 and completed in December 2025.
The financial leverage and fixed-cost coverage ratio are managed in accordance with a single \u2018A\u2019 financial strength rating target.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Shareholders' equity | 19,078 | 19,831 |
Contractual service margin after tax1 | 5,934 | 5,458 |
Minority interests | 93 | 85 |
Capital base for financial leverage (a) | 25,105 | 25,374 |
\u2013 Undated subordinated notes2 | 1,984 | 1,736 |
\u2013 Subordinated debt | 2,348 | 2,346 |
Total subordinated debt | 4,332 | 4,082 |
Debt securities issued | 1,197 | 1,196 |
Financial leverage (b) | 5,529 | 5,278 |
Financial leverage ratio (b/(a+b)) | 18.0% | 17.2% |
Fixed-cost coverage ratio3 | 12.5x | 10.2x |
The financial leverage ratio of NN increased to 18.0% at the end of 2025 from 17.2% at the end 2024. This mainly reflects the temporary increase of financial leverage due to debt transactions in March 2025, which included the issuance of EUR 1 billion of undated subordinated notes and the repurchase of EUR 763 million of the outstanding EUR 1 billion undated subordinated notes issued in 2014.
The fixed-cost coverage ratio (on the basis of the last 12 months) increased to 12.5x at the end of 2025 from 10.2x at the end of 2024. This mainly reflects lower realised losses on the sale of debt securities and higher operating results, partly offset by negative equity revaluations.
At the annual general meeting on 21 May 2026, a final dividend will be proposed of EUR 2.50 per ordinary share, or approximately EUR 655 million in total based on the current number of outstanding shares (net of treasury shares). The final dividend will be paid fully in cash, after deduction of withholding tax. If the proposed dividend is adopted by the General Meeting, NN ordinary shares will be quoted ex-dividend on 25 May 2026. The record date for the dividend will be 26 May 2026. The dividend will be payable on 2 June 2026. (For more information: https://www.nn-group.com/investors/share-information/dividend-policy-and-dividend-history.
On 20 August 2025, NN paid a 2025 interim dividend of EUR 1.38 per ordinary share, equivalent to EUR 365 million in total. The 2025 interim dividend was fully paid in cash. The proposed 2025 final dividend of EUR 2.50 per ordinary share plus the 2025 interim dividend of EUR 1.38 per ordinary share gives a total dividend for 2025 of EUR 3.88 per ordinary share.
On 27 May 2025, NN paid the 2024 final dividend of EUR 2.16 per ordinary share, equivalent to EUR 574 million in total.
On 12 February 2026, NN announced that it will execute an open market share buyback programme for an amount of EUR 350 million. The programme will be executed within ten months and is anticipated to commence on 2 March 2026. The share buyback will be deducted in full from Solvency II Own Funds in the first half of 2026 and is estimated to reduce NN\u2019s Solvency II ratio by approximately 4%-points.
The share buyback programme will be executed within the limitations of the existing authority granted by the General Meeting on 15 May 2025 and such authority to be granted by the General Meeting on 21 May 2026. The shares will be repurchased at a price that does not exceed the last independent trade or the highest current independent bid on the relevant trading platform. The programme will be executed by financial intermediaries and will be performed in compliance with the safe harbour provisions for share buybacks.
On 20 February 2025, NN announced an open market share buyback programme for an amount of EUR 300 million within ten months, which commenced on 3 March 2025. The share buyback programme was completed on 31 December 2025.
NN reports on the progress of the share buyback programmes on its corporate website on a weekly basis. (For more information: https://www.nn-group.com/investors/share-information/share-buyback-programmes.
On 19 December 2025, 6,000,000 NN Group N.V. treasury shares which were repurchased under the share buyback programmes were cancelled.
In 2025, a total number of 5,358,132 ordinary shares for a total amount of EUR 300 million were repurchased (reference is made to Note 11 Equity regarding the number of shares repurchased and the total amount in 2024).
On 27 February 2026, the total number of NN Group N.V. shares outstanding (net of 808,353 treasury shares) was 262,191,647.
On 20 May 2025, Standard & Poor\u2019s affirmed NN Group N.V. financial strength rating of \u2018A+\u2019 with stable outlook and credit rating of \u2018A-\u2019 with stable outlook.
On 20 October 2025, Fitch Ratings affirmed NN Group N.V. \u2018AA-\u2019 financial strength rating and \u2018A+\u2019 credit rating with a stable outlook.
| \u00a0 | Financial | NN Group N.V. |
|---|---|---|
Standard & Poor's | A+ | A- |
| \u00a0 | Stable | Stable |
Fitch | AA-1 | A+ |
| \u00a0 | Stable | Stable |
The Consolidated annual accounts of NN Group N.V. for the year ended 31 December 2025 were authorised for issue in accordance with a resolution of the Executive Board on 4 March 2026. The Executive Board may decide to amend the Consolidated annual accounts as long as these are not adopted by the General Meeting.
The General Meeting may decide not to adopt the Consolidated annual accounts but may not amend these during the meeting. The General Meeting can decide not to adopt the Consolidated annual accounts, propose amendments and then adopt the Consolidated annual accounts after a normal due process.
The Hague, 4 March 2026
D.A. (David) Cole, chair
P.F.M. (Pauline) van der Meer Mohr, vice-chair
I.K. (Inga) Beale
R.W. (Robert) Jenkins
R.J.W. (Rob) Lelieveld
C.G. (Cecilia) Reyes
J.V. (Koos) Timmermans
D.E. (David) Knibbe, CEO, chair
A.T.J. (Annemiek) van Melick, CFO, vice-chair
The Parent company annual accounts of NN Group N.V. for the year ended 31 December 2025 were authorised for issue in accordance with a resolution of the Executive Board on 4 March 2026. The Executive Board may decide to amend the Parent company annual accounts as long as these are not adopted by the General Meeting. The General Meeting may decide not to adopt the Parent company annual accounts, but may not amend these during the meeting. The General Meeting can decide not to adopt the Parent company annual accounts, propose amendments and then adopt the Parent company annual accounts after a normal due process.
The Hague, 4 March 2026
D.A. (David) Cole, chair
P.F.M. (Pauline) van der Meer Mohr, vice-chair
I.K. (Inga) Beale
R.W. (Robert) Jenkins
R.J.W. (Rob) Lelieveld
C.G. (Cecilia) Reyes
J.V. (Koos) Timmermans
D.E. (David) Knibbe, CEO, chair
A.T.J. (Annemiek) van Melick, CFO, vice-chair
| \u00a0 | 2025 | 2025 | 2024 | 2024 |
|---|---|---|---|---|
Shareholders' equity | \u00a0 | 19,079 | \u00a0 | 19,832 |
Share capital | 32 | \u00a0 | 32 | \u00a0 |
Non-distributable reserves | 3,452 | \u00a0 | 3,074 | \u00a0 |
Total non-distributable part of shareholders' equity | \u00a0 | 3,484 | \u00a0 | 3,106 |
Distributable reserves based on the Dutch Civil Code | \u00a0 | 15,595 | \u00a0 | 16,726 |
The Dutch supervisory rules and regulations stemming from the Dutch Financial Supervision Act (Wet op het financieel toezicht) provide a second restriction on the possibility to distribute dividends. Total freely distributable reserves is the minimum of freely distributable capital on the basis of solvency requirements and freely distributable capital on the basis of capital protection.
| \u00a0 | 2025 | 2025 | 2024 | 2024 |
|---|---|---|---|---|
Solvency requirement under the Financial Supervision Act | 8,758 | \u00a0 | 8,786 | \u00a0 |
Reserves available for financial supervision purposes | 19,271 | \u00a0 | 17,026 | \u00a0 |
Total freely distributable reserves on the basis of solvency requirements | \u00a0 | 10,513 | \u00a0 | 8,240 |
Total freely distributable reserves on the basis of the Dutch Civil Code | \u00a0 | 15,595 | \u00a0 | 16,726 |
Total freely distributable reserves (lower of the values above) | \u00a0 | 10,513 | \u00a0 | 8,240 |
Reference is made to Note 49 Capital and liquidity management in the Consolidated annual accounts for more information on solvency requirements.
There are other restrictions to the ability of subsidiaries, associates and joint ventures to distribute reserves to NN as a result of minimum capital requirements that are imposed by industry regulators in the countries in which the group companies operate. Reference is made to Note 49 Capital and liquidity management in the Consolidated annual accounts for the minimum capital requirements.
In addition to the legal and regulatory restrictions on distributing dividends from subsidiaries, associates and joint ventures to NN there are various other considerations and limitations that are taken into account in determining the appropriate levels of equity in the NN\u2019s subsidiaries, associates and joint ventures. These considerations and limitations include, but are not restricted to, rating agency and regulatory views, which can change over time; it is not possible to disclose a reliable quantification of these limitations.
Without prejudice to the authority of the Executive Board to allocate profits to reserves and to the fact that the ordinary shares are the most junior securities issued by NN, no specific dividend payment restrictions with respect to ordinary shares exist.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i21539": { "value": "Furthermore, NN is subject to legal restrictions with respect to repayment of capital to holders of ordinary shares. Capital may be repaid to the holders of ordinary shares pursuant to an amendment of NN\u2019s Articles of Association whereby the ordinary shares are written down. Pursuant to the Dutch Civil Code, capital may only be repaid if none of NN\u2019s creditors opposes such a repayment within two months following the announcement of a resolution to that effect.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:724500OHYNDT9OY6Q215", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } } } }