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Fortnightly Publication Highlighting Latest Insights From IRF Providers

Company Research

NN Group (NN NA) Netherlands

Financials

the IDEA!

Bloomberg reported this week that Italian insurer Generali is considering making a large acquisition in Europe and that NN could be one of its potential targets. The news underlines what analysts at the IDEA! have been saying many times before, i.e., that NN shares are cheap (trades at <6.3x 2024 EPS and a P/BV of 0.55x vs. Generali at 9.2x and 1.18x, respectively), whilst offering a very attractive cash yield. The company has returned €10bn+ in cash to its shareholders (2015-2023) by means of dividends and share buybacks. So, even without a takeover, they consider NN to be a very attractive investment case.

Edition: 181

- 08 March, 2024


NN Group (NN NA) Netherlands

Financials

the IDEA!

Assuming a FY23 dividend of EUR 804m and when adding the EUR 250m share buyback, the company is returning EUR 1,054m in cash to its shareholders. Relative to NN’s market cap of EUR 9.852m, this translates into a cash return of 10.7%. Based upon the firm's healthy financial position on the one hand and the fact that approx. 78% of the recurring EUR 250m share buyback has been completed already, the IDEA! believes there is still room for additional cash returns. All in all, the NN equity story is still very much intact as is the IDEA!’s positive stance.

Edition: 168

- 01 September, 2023


NN Group (NN NA) Netherlands

Financials

the IDEA!

New subsidiary, NN Insurance Belgium, to sell closed book life portfolio - worth €3.3bn of assets and liabilities. This further simplifies their IT structure and enables full focus on further growing the protection and pension business, building on its strong distribution network in the Belgian market. This chimes with NN’s long-term strategy and ambitions. The IDEA reiterate their bullish stance.

Edition: 121

- 15 October, 2021