PRODUCT REVIEW — BRANCH 23

NN Strategy — A Costly ETF in a Useless Wrapper

Branch 23 is often presented as a tax-efficient haven for Belgian investors. But for those using accumulator ETFs, this advantage is a myth: the tax treatment is identical, while the fees are 8 times higher.

IN SHORT

NN Strategy combines a 2% premium tax on each payment and ~1.50%/year total fees (wrapper + underlying funds). Branch 23 is often sold as a tax haven, but for an investor in accumulator ETFs like IMIE, this advantage is a myth: tax treatment is identical (no withholding tax, same 10% capital gains tax), but with fees 8 times higher. Over 30 years at €300/month, choosing NN Strategy over a World ETF costs you ~€155,500 in unrealised profits — using conservative assumptions.

Product Sheet

ProductNN Strategy (Non-fiscal Branch 23 contract)
TypeUnit-linked life insurance (Branch 23)
InsurerNN Insurance Belgium
Premium tax2.00% (levied on each payment)
Entry fee0% to 1% (depending on broker and amount)
Annual fees~1.20% to 1.80% (contract fee + fund TER)
Estimated return~6.20% to 6.50% net (8% gross − ~1.50% fees)
AvailabilityRedemptions possible (exit fees if < 5 years)
Capital gains tax10% on gains (> €10,000/year)

Fees shown are based on the Key Information Documents (KID/DICI) available on the FSMA website and NN Insurance Belgium product documentation. Verify the current KID before subscribing.

The Branch 23 Tax Advantage — A Myth for ETF Investors

The Branch 23 pitch relies on one claim: exemption from withholding tax (précompte mobilier) and (before 2026) from capital gains tax.

This claim is technically true — but irrelevant for anyone investing in accumulator ETFs like IMIE. Since they do not distribute dividends, there is no withholding tax to avoid. And regarding the 10% capital gains tax, it now applies equally to both solutions.

Branch 23 therefore offers no real tax advantage over IMIE. It only offers the appearance of one to investors who compare it to savings accounts or distributing funds. The right question is not about taxes — it is: why pay 1.50%/year in fees for a tax treatment identical to what you get at 0.17%/year?

Non-fiscal Branch 23 has never offered a real tax advantage over an accumulator ETF like IMIE. Not before, not now. What you are paying for is an insurance wrapper that costs 8 to 10 times more — with no tax benefit in return.

The Double Layer of Fees

1

Premium tax: 2% — Before even investing

Each euro paid loses 2% immediately by law. On €300/month, €6 disappears every month before even being invested. Over 30 years, this represents €2,160 lost only in premium tax.

At ~6.50% net/year, it takes ~5.5 months of returns just to recover your initial stake after the 3% entry friction (tax + fees).

2

NN wrapper fees: ~0.60% to 0.96%/year

NN charges fees for the administrative management of the contract and the designation of beneficiaries. These fees apply to your total capital each year, regardless of return.

3

Underlying fund fees: ~0.60% to 1.20%/year

The chosen funds (active or passive) have their own TER which is added to the NN fees. You quickly reach a total of 1.50% to 1.80%, compared to 0.17% for a direct World ETF.

⚠ The total cost of NN Strategy is not displayed in a single line. The wrapper fees and the underlying fund fees add up — and are often not presented together during subscription.

The 30-Year Match

Comparison based on a payment of €300/month (€3,600/year) for 30 years. Total invested: €108,000.

NN StrategyWorld ETF IMIE
Total entry fees−3% (premium + entry)−0.12% TOB (purchase)
Estimated net return~6.50%/year~8.00%/year
Final gross capital~€235,100~€408,000
Capital gains tax (10%)−€11,960−€29,000
TOTAL NET VALUE~€223,140~€378,611
REAL NET PROFIT+€115,140+€270,611

The World ETF generates ~2.3 times more net profit (+€270,611 vs +€115,140) — a gap of €155,471.

Note: the ETF simulation applies the CGT as if all the capital were sold all at once at the end. In practice, by selling progressively at retirement (in annual tranches of €10,000 of capital gains), the ETF investor can reduce the real CGT to almost zero. The real gap is therefore even more favorable to the ETF.

Methodology note: the 8% return used for IMIE is based on the historical average of the MSCI ACWI IMI over 20 years (2005–2025). The net return of 6.50% for NN Strategy assumes total fees of 1.50%/year — at the bottom of the observed range. The comparison is therefore conservative and favorable to NN Strategy.

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The Only Real Use Case: Succession

A Branch 23 contract allows you to designate specific beneficiaries who receive the capital directly in case of death, bypassing standard inheritance procedure. For investors over 60 who have already built up wealth and wish to plan its transmission outside classic rules, this legal advantage has real value.

However, this need for transmission does not justify paying 1.50% fees per year for 30 years during the wealth accumulation phase. It is an instrument of transfer, not investment.

Branch 23 remains a legitimate estate planning tool. But it is a legal instrument, not an investment instrument. If you are looking to transfer built-up wealth, consult a notary — not a bank advisor who will sell you funds at 1.50%/year.

⚖ The Verdict

NN Strategy is often presented as a tax-efficient wrapper, but the advantage over accumulator ETFs has never existed. Not before, not now. What remains is a 2% premium tax and ~1.50%/year in fees for an asset you can buy directly for 0.17%/year.

The product is not fraudulent, but it is structurally 8 to 10 times more expensive than a direct ETF investment for an identically identical tax treatment. You are paying for an insurance wrapper that provides no measurable benefit.

If you subscribed recently (less than 5 years), check the surrender fees before cancelling — they can exceed the cost of staying.

Legitimate use case:

Estate planning for investors aged 60+, built-up wealth, objective of transmission outside classic succession. In this case: consult a notary.

To avoid for:

Any investor seeking to build up wealth. The insurance wrapper does not compensate for its costs with any real tax advantage over a direct ETF.

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Last updated: April 2026

Simulation for illustrative purposes only. Past performance is no guarantee of future results.