Goldman Sachs to buy asset management arm of NN Group for €1.7bn

As part of the agreement, NN Group and Goldman Sachs Asset Management will enter into a 10-year strategic partnership under which the combined company will continue to provide asset management services to NN Group.

NN chief executive officer David Knibbe said: "NN Group and NN IP have a long-standing and successful shared history. We value this strong and constructive relationship that we have and we look forward to further building on it in a new form. This transaction brings together two international asset managers, each with many decades of investment experience.

"We have found a strong and professional partner in Goldman Sachs, providing an environment in which our NN IP colleagues can continue to thrive, while the combined investment expertise and scale will enhance the service offering to NN IP’s clients, including NN Group. This transaction will also give NN Group greater optionality to develop a broader range of asset management propositions for our customers."

NN said the deal will improve its Solvency II ratio by about 17 percentage points. Following closing of the transaction, it expects to have excess capital which will be available for additional returns to shareholders over time unless used for value-creating opportunities.