Goldman Sachs' (GS) deal to acquire NN Investment from NN Group in an all-cash transaction will expand its Europe fiduciary management business.
Goldman Sachs said on Thursday it will buy Dutch insurer NN Group's asset management arm for around 1.7 billion euros ($1.98 billion) in the biggest acquisition by the U.S. company since David Solomon became chief executive in 2018. The Wall Street firm wants to bulk up in areas like wealth management and expand its presence in regions outside the United States. "This acquisition allows us to accelerate our growth strategy and broaden our asset management platform," Solomon said in a statement.
NN Group, the largest insurer in the Netherlands, on Thursday reported a 21% jump in operating profit for the first half of 2021, pushing up its shares almost 4% as the coronavirus crisis lifts insurance sales across the globe. NN said operating profit climbed to 1.12 billion euros ($1.31 billion), while its net profit more than doubled from a year before to 1.41 billion euros. "It's very clear that what's happening in the world, whether it's COVID or the extreme weather we're seeing, has increased the awareness of people of how vulnerable we are," Chief Executive David Knibbe told reporters.