LSE:0QVV

Stock Analysis Report

Executive Summary

NN Group N.V., a financial services company, primarily provides life insurance products in the Netherlands, rest of Europe, the United States, and Asia.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has NN Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0QVV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.1%

0QVV

10.8%

GB Insurance

3.9%

GB Market


1 Year Return

-33.9%

0QVV

-29.3%

GB Insurance

-22.4%

GB Market

Return vs Industry: 0QVV underperformed the UK Insurance industry which returned -29.3% over the past year.

Return vs Market: 0QVV underperformed the UK Market which returned -22.4% over the past year.


Shareholder returns

0QVVIndustryMarket
7 Day5.1%10.8%3.9%
30 Day-22.0%-17.6%-16.1%
90 Day-27.1%-27.5%-26.1%
1 Year-29.9%-33.9%-21.4%-29.3%-18.2%-22.4%
3 Year-3.3%-17.0%-17.7%-32.3%-11.7%-23.1%
5 Year19.4%-7.1%-9.6%-32.7%1.9%-21.5%

Price Volatility Vs. Market

How volatile is NN Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NN Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0QVV (€24.7) is trading below our estimate of fair value (€114.23)

Significantly Below Fair Value: 0QVV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0QVV is good value based on its PE Ratio (4.3x) compared to the Insurance industry average (13x).

PE vs Market: 0QVV is good value based on its PE Ratio (4.3x) compared to the UK market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: 0QVV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0QVV is good value based on its PB Ratio (0.2x) compared to the GB Insurance industry average (1.3x).


Next Steps

Future Growth

How is NN Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0QVV's earnings are forecast to decline over the next 3 years (-11.3% per year).

Earnings vs Market: 0QVV's earnings are forecast to decline over the next 3 years (-11.3% per year).

High Growth Earnings: 0QVV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0QVV's revenue is expected to decline over the next 3 years (-12.9% per year).

High Growth Revenue: 0QVV's revenue is forecast to decline over the next 3 years (-12.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QVV's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has NN Group performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0QVV has high quality earnings.

Growing Profit Margin: 0QVV's current net profit margins (9.4%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: 0QVV's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: 0QVV's earnings growth over the past year (79.7%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: 0QVV earnings growth over the past year (79.7%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: 0QVV's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is NN Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0QVV has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0QVV's debt is covered by short term assets (assets are 1.9x debt).


Financial Institutions Analysis

Asset Level: 0QVV's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0QVV has a sufficient allowance for bad loans.

Low Risk Liabilities: 0QVV reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0QVV has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0QVV has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0QVV has an appropriate level of bad loans.


Next Steps

Dividend

What is NN Group's current dividend yield, its reliability and sustainability?

8.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0QVV's dividend (8.78%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).

High Dividend: 0QVV's dividend (8.78%) is in the top 25% of dividend payers in the UK market (7.27%)


Stability and Growth of Payments

Stable Dividend: 0QVV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0QVV's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.5%), 0QVV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QVV's dividends in 3 years are forecast to be covered by earnings (54.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

David Knibbe (48yo)

0.42

Tenure

€2,006,000

Compensation

Dr. David E. Knibbe has been Chairman of the Executive Board at NN Group NV since October 1, 2019. And served as its Chief Executive Officer since October 1, 2019 until Npvember 2019. Dr. Knibbe was Chief  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.20M) is below average for companies of similar size in the UK market ($USD3.41M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
David Knibbe
Chairman of Executive Board & CEO0.42yr€2.01m0.011% 836.5k
Delfin Arroyo
Vice Chairman of Management Board6yrs€2.36mno data
Delfin Arroyo
Vice Chairman of Executive Board & CFO5.67yrs€2.16m0.015% 1.2m
Tjeerd Bosklopper
CTO, Interim CEO Netherlands & Member of Management Board1.42yrsno datano data
Satish S. Bapat
CEO of NN Investment Partners & Member of Management Board2.83yrsno datano data
Dailah Nihot
Chief of Organization & Corporate Relations and Member of Management Board1.42yrsno datano data
Fabian Rupprecht
CEO of International Insurance & Member of Management Board1.42yrsno datano data
Janet Stuijt
General Counsel1.42yrsno datano data
Karin de Jong
Head of Investor Relationsno datano datano data
Wojciech Sass
Chief Executive Officer of NN Poland4.42yrsno datano data

1.4yrs

Average Tenure

50yo

Average Age

Experienced Management: 0QVV's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Ruijter
Supervisory Board Member2.67yrs€98.01kno data
Dick Harryvan
Supervisory Board Vice Chairman4yrs€121.61kno data
David Cole
Chair of the Supervisory Board0.83yr€158.81kno data
Robert Jenkins
Supervisory Board Member4yrs€122.21kno data
Hélène Vletter-van Dort
Supervisory Board Member4.42yrs€102.95kno data
Clara-Christina F. Streit
Supervisory Board Member2.67yrs€122.21kno data
Heinz-Josef Gottfried Hauser
Supervisory Board Member5.67yrs€131.89kno data
Johannes Schoen
Supervisory Board Member5.67yrs€102.85kno data

4.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 0QVV's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NN Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NN Group N.V.
  • Ticker: 0QVV
  • Exchange: LSE
  • Founded: 2011
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: €7.862b
  • Shares outstanding: 319.60m
  • Website: https://www.nn-group.com

Number of Employees


Location

  • NN Group N.V.
  • Schenkkade 65
  • The Hague
  • Zuid-Holland
  • 2595 AS
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NNENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJul 2014
NNABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2014
2NNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
0QVVLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2014
NNGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2014
NNWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2014
2NNETLX (Eurotlx)YesOrdinary SharesITEURJul 2014
NNGR.YOTCPK (Pink Sheets LLC)UNSPONSOD ADRUSUSDJan 2017

Biography

NN Group N.V., a financial services company, primarily provides life insurance products in the Netherlands, rest of Europe, the United States, and Asia. The company operates through seven segments: Netherlands Life, Netherlands Non-life, Insurance Europe, Japan Life, Asset Management, Other, and Japan Closed Block VA. It offers group and individual life/pension products, single premium variable annuity individual life insurance products, and corporate-owned and protection life insurance products; and health, motor, fire, liability, transport, disability, and accident insurance products, as well as pension administration services. The company also provides retirement products and services; various asset management products comprising fixed income, equity, multi-asset, and alternative credit; and banking services, including mortgages, savings products, and reinsurance services. It offers its products to individuals, small and medium-sized enterprises, large corporations, retail customers, wholesale distributors, and institutional investors directly, as well as through agents, brokers, and banks. The company was formerly known as ING Insurance Topholding N.V. and changed its name to NN Group N.V. in March 2014 as a result of its merger with ING Verzekeringen N.V. NN Group N.V. was incorporated in 2011 and is headquartered in The Hague, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:09
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.