NNGPF - NN Group N.V.

[phil_Buffett]

the dutch aig

 

insurance Company from the netherlands.

 

netherlands life insurance, non life insurance, european insurance, Japan life insurance, asset Management globally (around 180billion€ under Management) nn bank

 

spinoff from ing diba. bad managed over the years. forced ipo.

 

ing diba holds still 25% of the equity and have to sell it until the end 2016

 

bv is at 61€ and the stock is at 32,5€. so  around 0,54x bv.

 

the have 332 Million Shares outstanding. this year around 1031million € free cash flow the first nine months of the year.

 

for more here https://www.nn-group.com/Media/Article/NN-Group-delivers-continued-solid-performance-in-3Q15.htm

 

the roe was always bad. they want to improve it. q3 it was around 12% for the year it is lower around 6% i think after my calculation.

 

after the ipo they said they want to cut costs around 200million. they already achieved this. and now want to cut more costs (118million euros 15% until 2018) they paid around 859million out to Investors and this was 500 Million for buyback Shares and 459million for dividends. they are saying they want to give shareholders around 50% of net profits.

 

if you argue they are now earning around 6-8% ROE they are worth around 0,6-0,8x bv so between 36,6€ and 48,8€. if they could improve their operative earnings the Price will rise even more to book value. also solvency II Ratio at 214% very high.

 

 

here the capital day from last week. very nice!

 

https://www.nn-group.com/Investors/Capital-Markets-Day.htm

 

this could be a aig type Investment.

 

what are your thoughts?

 

[Spekulatius]

I bought this a while ago for 22 €. The analogy to AIG may be fitting. One thing to note is that Delta Lloyd is a similar case that did not play out well (Einhorn was in the stock as well). Delta Lloyd seems to be undercapitalized and is mismanaged on top of this, while NN appears to be in good shape with respect to the balance sheet, it's just the profitability that is subpar.

 

NN as well as Delta LLoyd should benefit enormously from higher interest rates.