NasdaqGM:NGHC

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National General Holdings

Executive Summary

National General Holdings Corp., a specialty personal lines insurance holding company, provides various insurance products and services in the United States, Bermuda, Luxembourg, and Sweden.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has National General Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.2%

NGHC

3.7%

US Insurance

3.0%

US Market


1 Year Return

-10.7%

NGHC

-16.4%

US Insurance

9.9%

US Market

Return vs Industry: NGHC exceeded the US Insurance industry which returned -15.4% over the past year.

Return vs Market: NGHC underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

NGHCIndustryMarket
7 Day5.2%3.7%3.0%
30 Day8.6%7.2%8.2%
90 Day0.2%-15.3%0.4%
1 Year-9.8%-10.7%-14.2%-16.4%12.4%9.9%
3 Year-5.6%-7.8%0.5%-7.5%31.0%22.3%
5 Year7.3%3.6%30.2%14.1%58.1%40.3%

Price Volatility Vs. Market

How volatile is National General Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National General Holdings 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: NGHC ($20.3) is trading below our estimate of fair value ($55.75)

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


Price To Earnings Ratio

PE vs Industry: NGHC is good value based on its PE Ratio (7.1x) compared to the Insurance industry average (13.5x).

PE vs Market: NGHC is good value based on its PE Ratio (7.1x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NGHC is overvalued based on its PB Ratio (1x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is National General Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NGHC's earnings are forecast to decline over the next 3 years (-0.3% per year).

Earnings vs Market: NGHC's earnings are forecast to decline over the next 3 years (-0.3% per year).

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

Revenue vs Market: NGHC's revenue (10.5% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: NGHC's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NGHC's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has National General Holdings performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NGHC has high quality earnings.

Growing Profit Margin: NGHC's current net profit margins (6.2%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: NGHC's earnings have grown by 19.4% per year over the past 5 years.

Accelerating Growth: NGHC's earnings growth over the past year (62.7%) exceeds its 5-year average (19.4% per year).

Earnings vs Industry: NGHC earnings growth over the past year (62.7%) exceeded the Insurance industry -0.4%.


Return on Equity

High ROE: NGHC's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is National General Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NGHC's short term assets ($4.0B) do not cover its short term liabilities ($6.1B).

Long Term Liabilities: NGHC's short term assets ($4.0B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: NGHC's debt to equity ratio (24.9%) is considered satisfactory.

Reducing Debt: NGHC's debt to equity ratio has increased from 24.1% to 24.9% over the past 5 years.

Debt Coverage: NGHC's debt is well covered by operating cash flow (82.9%).

Interest Coverage: NGHC's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Next Steps

Dividend

What is National General Holdings's current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NGHC's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: NGHC's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (4.52%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NGHC has been paying a dividend for less than 10 years.

Growing Dividend: NGHC's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.7%), NGHC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NGHC's dividends in 3 years are forecast to be thoroughly covered by earnings (7.6% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Barry Karfunkel (39yo)

4yrs

Tenure

US$5,607,270

Compensation

Mr. Barry Samuel Karfunkel has been Co-Chairman of the Board at National General Holdings Corporation since May 07, 2018 and its Chief Executive Officer and Director since April 2016 and 2010 respectively. ...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD5.61M) is about average for companies of similar size in the US market ($USD4.78M).

Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Barry Karfunkel
CEO & Co-Chairman4yrsUS$5.61m0.48% $11.0m
Robert Karfunkel
President & Co-Chairman2yrsUS$5.04m0.41% $9.5m
Michael Weiner
Executive VP10.33yrsUS$2.68m0.11% $2.6m
Peter Rendall
Executive VP & COO4.83yrsUS$2.37m0.013% $299.0k
Jeffrey Weissmann
Executive VP9.33yrsUS$2.56m0.048% $1.1m
Peter Rendall
Chief Operating Officer4.83yrsno datano data
Lawrence Moloney
Senior VP & Chief Accounting Officer3yrsno data0.0013% $30.2k
Sam Rea
Executive VP & Chief Information Officerno datano datano data
Paul Anderson
Director of Investor Relationsno datano datano data
Jodi Swartz
Executive VP & Chief Marketing Officer1.33yrsno datano data

4.4yrs

Average Tenure

46yo

Average Age

Experienced Management: NGHC's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Barry Karfunkel
CEO & Co-Chairman4yrsUS$5.61m0.48% $11.0m
Robert Karfunkel
President & Co-Chairman2yrsUS$5.04m0.41% $9.5m
Donald DeCarlo
Independent Director10.33yrsUS$132.34k0.0062% $142.0k
John Nichols
Independent Director2.42yrsUS$127.34k0.024% $558.3k
Patrick Fallon
Independent Director6.83yrsUS$137.34k0.0062% $142.0k
Barry Zyskind
Director6.83yrsno data0.28% $6.5m
John Marshaleck
Independent Director3.58yrsUS$142.34k0.0083% $192.8k
Barbara Paris
Independent Director6.83yrsUS$127.34k0.0062% $142.0k

5.2yrs

Average Tenure

63yo

Average Age

Experienced Board: NGHC's board of directors are considered experienced (5.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

National General Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National General Holdings Corp.
  • Ticker: NGHC
  • Exchange: NasdaqGM
  • Founded: 1939
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$2.309b
  • Shares outstanding: 113.75m
  • Website: https://www.nationalgeneral.com

Number of Employees


Location

  • National General Holdings Corp.
  • 59 Maiden Lane
  • 38th Floor
  • New York
  • New York
  • 10038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTGK.POTCPK (Pink Sheets LLC)DEP SHS PFD-BUSUSDNo data
NGHCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2013
5NAADB (Deutsche Boerse AG)YesCommon StockDEEURJun 2013
NGHC.PNasdaqGM (Nasdaq Global Market)PFD SER A %USUSDJun 2014
NGHC.ONasdaqGM (Nasdaq Global Market)DEP SHS PFD-BUSUSDMar 2015
NGHC.NNasdaqGM (Nasdaq Global Market)DEP SHS PFD CUSUSDJun 2016

Biography

National General Holdings Corp., a specialty personal lines insurance holding company, provides various insurance products and services in the United States, Bermuda, Luxembourg, and Sweden. The company's Property and Casualty segment offers standard, preferred, and nonstandard automobile insurance products; and recreational vehicle (RV) insurance products that carry RV-specific endorsements comprising automatic personal effects coverage, optional replacement cost coverage, RV storage coverage, and full-time liability coverage. It also provides homeowners policies consisting of property and liability coverages for one-and two-family, and owner-occupied residences; and additional personal umbrella coverage to the homeowners. In addition, this segment offers small business automobile insurance products, which covers liability and physical damage caused by light-to-medium duty commercial vehicles; motorcycle insurance products for various types of motorcycles, golf carts, and all-terrain vehicles; and lender-placed insurance products, including fire, home, and flood products, as well as collateral protection insurance and guaranteed asset protection products for automobiles. It sells its products through retail store fronts, Web/mobile, phone contact centers, and kiosks; and agents and affinity partners. The company's Accident and Health segment provides accident and non-major medical health insurance products, such as accident/AD&D coverage in the event of bodily injury or death due to accidental means; hospital indemnity; short-term medical plans; cancer/critical illness policies; basic dental coverage; and life insurance products for individuals, as well as stop loss programs for employers. It sells its products through agents, managing general underwriters, employers, Internet; and directly. The company was formerly known as American Capital Acquisition Corporation. National General Holdings Corp. was founded in 1939 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 06:26
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
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.