NNGRY - NN Group: Enough Reasons To Buy This 8%-Yielding Dutch Insurer
2024-02-12 03:53:30 ET
Summary
- After the settlement as a result of the unit-linked insurance policies, the risk/reward profile for NN has improved again.
- NN has a strong financial position, which enables them to return lots of cash to shareholders.
- The company offers an attractive total shareholder return of +10% through growing dividends and share buybacks.
- Based on the dividend discount model, the fair value of NN is €48 per share, which is significantly undervalued.
Investment thesis
On the 3rd of September, I wrote my last article about NN Group (NNGPF). Since then, a lot has happened. On September 27, the share price plummeted -22% due to a huge increase in concerns about the unit-linked insurance products.
NN share price development (Google finance)
Hardly anyone saw the impact of the message coming, me included. At that time, it was also difficult to predict what the ultimate impact of this would be. This could vary from several hundred million to a few billion euros....
NN Group: Enough Reasons To Buy This 8%-Yielding Dutch Insurer