NN Group N.V. (NN.AS) | Investment Case

1. Company Snapshot

1.a. Company Description

NN Group N.V., a financial services company, primarily provides life insurance products in the Netherlands and internationally.The company operates through Netherlands Life, Netherlands Non-life, Insurance Europe, Japan Life, Banking, and Other segments.It offers group and individual life insurance, and pension products; non-life insurance products, including motor, fire, liability, transport, travel, and disability and accident insurance; employee benefits, and health insurance products; corporate-owned life insurance products; and single premium variable annuity individual life insurance products.

The company also provides banking services, including mortgage loans, online savings accounts, bank annuities, consumer lending, and retail investment products, as well as administration and management services; reinsurance services; and retirement products and services.It offers its products to individuals, small and medium-sized enterprises, retail customers, and institutional customers directly, as well as through tied agents, bancassurance partners, brokers, and direct channels.The company was formerly known as ING Insurance Topholding N.V. and changed its name to NN Group N.V. in March 2014.

NN Group N.V. was founded in 1845 and is headquartered in the Hague, the Netherlands.

Show Full description

1.b. Last Insights on NN

NN Group N.V.'s recent performance was driven by robust capital generation and dividend growth, as reported in its FY 2024 earnings release. The company successfully navigated regulatory and market headwinds, demonstrating its resilience. Strong financial performance was highlighted, with a focus on generating value for shareholders. Additionally, the company's ability to grow dividends is a positive sign, indicating a commitment to returning value to investors.

1.c. Company Highlights

Last Price	69.6
Change Percentage	0.46%
Open	68.82
Previous Close	69.28
Market Cap ( Millions)	18248
Volume	669191
Year High	72.78
Year Low	44
M A 50	67.51
M A 200	62.43

FCF Yield	0.82%
Dividend Yield	5.09%
ROE	4.00%
Debt / Equity	64.99%
Net Debt / EBIDTA	0.00%
Price To Book	0.99
Price Earnings Ratio	24.2
Price To FCF	122.06
Price To sales	1.74
EV / EBITDA	0

2. NN Group's Strong 2025 Performance Driven by Growth Segments and Future Ready Program

NN Group reported a strong financial performance for 2025, with Operating Capital Generation (OCG) coming in at EUR 2.1 billion, exceeding the targeted EUR 1.9 billion. The company's free cash flow slightly exceeded the target of EUR 1.6 billion, growing at a rate of 7% per annum. The actual EPS came out at EUR 2.87, lower than the estimated EUR 3.39. The Solvency II ratio stood at a strong 220%, providing a solid foundation for future growth. Revenue growth is expected to be 7.6% next year, indicating a positive outlook.

Publication Date: Feb -18

                                    📋 Highlights
                                    Exceeded 2025 Financial Targets::
                                                OCG reached EUR 2.1B (vs. EUR 1.9B target), free cash flow EUR 1.6B+ (vs. EUR 1.6B target), with 7% annual growth in both metrics.
Growth Segments Outperformed::
                                                Insurance Europe VNB rose 16% YoY, Japan VNB surged 25% YoY, and Non-Life written premiums surpassed EUR 4B for the first time.
Capital Return Enhanced::
                                                EUR 100M incremental return to shareholders (split evenly between dividend increase and share buybacks), raising total capital return above EUR 500M in 2025.
Future Ready Program Progress::
                                                236 AI use cases deployed, 42% of sales from digital leads, and 40% of EUR 200M 2027 AI benefits already realized by 2025.
Strong Solvency Position::
                                                Solvency II ratio at 220% (up from 150-200% target range), with EUR 500M-1.5B cash held at the holding company and a stable single-A rating.

                                

Segmental Performance

The company's growth segments, Insurance Europe and Japan, delivered significant increases in new business values. Insurance Europe saw a 16% increase in VNB, while Japan recorded a 25% increase. The Netherlands Life segment also performed well, with increased DC inflows of EUR 2.6 billion. As David Knibbe mentioned, "Our growth segments deliver significant increases in new business values for international and a growth written premium growth of 6% in Non-life."

Capital Position and Return

NN Group's capital position has significantly improved, with a Solvency II ratio of 220%. The company has also enhanced its capital return proposition, including an additional EUR 100 million on top of its regular progressive dividend policy and annual share buyback. The dividend yield stands at 5.12%, making it an attractive proposition for income investors.

Valuation

The company's Price-to-Book Ratio stands at 0.95, indicating that the stock is trading slightly below its book value. The ROE is 6.14%, which is a reasonable return considering the current interest rate environment. With a Dividend Yield of 5.12%, NN Group offers an attractive return for investors seeking income.

Outlook

The company expects to continue its growth trajectory, driven by its growth segments and the progress made on its Future Ready program. The introduction of new products in Japan and the Netherlands is expected to contribute to further growth. As Michele Ballatore stated, "We're happy to continue on our organic growth path," indicating a positive outlook for the company's future performance.

3. NewsRoom

Assessing NN Group (ENXTAM:NN) Valuation After Mixed Recent Share Performance

Mar -03

Source:

What Makes NN Group NV Unsponsored ADR (NNGRY) a Strong Momentum Stock: Buy Now?

Feb -23

Source:

All You Need to Know About NN Group (NNGRY) Rating Upgrade to Strong Buy

Feb -19

Source:

NN Group NV (NNGPF) (Full Year 2025) Earnings Call Highlights: Strong Growth and Strategic ...

Feb -13

Source:

Institutions own 47% of NN Group N.V. (AMS:NN) shares but retail investors control 48% of the company

Sep -15

Source:

Take the Zacks Approach to Beat the Markets: AngloGold Ashanti, Caterpillar & Hershey in Focus

Jul -28

Source: zacks.com

Zacks Industry Outlook Highlights AIA, Manulife Financial, Sun Life Financial, Aviva and NN Group

Jun -25

Source:

5 Life Insurance Stocks to Watch in a Steady Interest Rate Environment

Jun -24

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.40%)

6. Segments

Netherlands Life

Expected Growth: 6.5%

Netherlands Life from NN Group N.V. achieved 6.5% growth driven by increasing demand for retirement and pension products, favorable interest rates, and a strong brand presence. Additionally, the segment benefited from cost savings initiatives, improved operational efficiency, and a growing middle-class population seeking life insurance and investment products.

Netherlands Non-life

Expected Growth: 6.2%

The 6.2% growth in Netherlands Non-life from NN Group N.V. is driven by a strong economy, increasing disposable income, and a growing demand for insurance products. Additionally, the segment benefits from a favorable regulatory environment, investments in digitalization, and a robust claims management process, leading to improved customer satisfaction and retention.

Insurance Europe

Expected Growth: 6.8%

NN Group N.V.'s Insurance Europe segment growth of 6.8% is driven by increasing demand for life insurance and pension products, expansion in Central and Eastern Europe, and a strong capital position enabling strategic investments. Additionally, the segment benefits from a diversified distribution network and a robust risk management framework, supporting sustainable growth.

Banking

Expected Growth: 5.5%

NN Group N.V.'s 5.5% growth in banking is driven by increasing demand for digital banking services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on cost savings, investments in technology, and improvement in operational efficiency have contributed to its growth. Furthermore, the growth is also attributed to the rise in mortgage lending and strong performance in the Dutch retail banking market.

Japan Life

Expected Growth: 5.8%

Japan Life from NN Group N.V. growth of 5.8% driven by increasing demand for life insurance products, favorable demographics, and a growing middle class. Additionally, the Japanese government's efforts to promote private pension plans and the increasing popularity of online insurance platforms contribute to the segment's growth.

Other

Expected Growth: 6.0%

NN Group N.V.'s 6.0% growth is driven by increasing demand for insurance and asset management services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization, cost savings initiatives, and strong capital position have contributed to its growth momentum.

7. Detailed Products

NN Investment Partners

NN Investment Partners is the asset management arm of NN Group, offering a range of investment solutions to institutional clients, wholesale investors, and retail investors.

NN Life Insurance

NN Life Insurance provides a range of life insurance products, including term life, whole life, and universal life insurance, to individuals and groups.

NN Non-Life Insurance

NN Non-Life Insurance offers a range of non-life insurance products, including motor, home, and liability insurance, to individuals and businesses.

NN Pensions

NN Pensions provides a range of pension products and services, including defined contribution and defined benefit plans, to individuals and employers.

NN Banking

NN Banking offers a range of banking products and services, including current accounts, savings accounts, and mortgages, to individuals and businesses.

NN International Insurance

NN International Insurance provides a range of international insurance products, including expat insurance and international health insurance, to individuals and groups.

8. NN Group N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for NN Group N.V. is medium due to the presence of alternative investment products and services offered by other financial institutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers in the market, and the high switching costs associated with changing financial institutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large suppliers of technology and services, but the company has some flexibility in choosing its suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the financial services industry, including regulatory requirements and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many established players in the market, and the need to constantly innovate and differentiate products and services to remain competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	43.78%
Debt Cost	8.07%
Equity Weight	56.22%
Equity Cost	8.07%
WACC	8.07%
Leverage	77.88%

11. Quality Control: NN Group N.V. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Grupo Catalana Occidente

A-Score: 8.1/10

Value: 8.4

Growth: 4.3

Quality: 7.9

Yield: 9.4

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

Aviva

A-Score: 7.4/10

Value: 6.5

Growth: 5.4

Quality: 5.8

Yield: 9.4

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

ASR Nederland

A-Score: 7.1/10

Value: 5.7

Growth: 4.0

Quality: 6.4

Yield: 8.8

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

Unipol Gruppo

A-Score: 6.9/10

Value: 5.0

Growth: 4.1

Quality: 6.4

Yield: 8.8

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

UNIQA

A-Score: 6.8/10

Value: 4.8

Growth: 3.4

Quality: 4.8

Yield: 8.8

Momentum: 10.0

Volatility: 9.0

1-Year Total Return ->

NN Group

A-Score: 6.7/10

Value: 3.9

Growth: 3.4

Quality: 5.9

Yield: 8.8

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

29.28%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.07%

NN Group N.V. - NL0010773842

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NN

1.c. Company Highlights

Higher Yield

Stable Momentum

Fairly Valued

Average Yield

Earnings Miss

Lower Growth

Lower Quality

Earnings Beats

Revenues Miss

Revenues Beats

Strong Momentum

Medium Volatility

Cheaper

Less Volatile

Average Growth

2. NN Group's Strong 2025 Performance Driven by Growth Segments and Future Ready Program

Segmental Performance

Capital Position and Return

Valuation

Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.40%)

6. Segments

Netherlands Life

Expected Growth: 6.5%

Netherlands Non-life

Expected Growth: 6.2%

Insurance Europe

Expected Growth: 6.8%

Banking

Expected Growth: 5.5%

Japan Life

Expected Growth: 5.8%

Other

Expected Growth: 6.0%

7. Detailed Products

NN Investment Partners

NN Life Insurance

NN Non-Life Insurance

NN Pensions

NN Banking

NN International Insurance

8. NN Group N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: NN Group N.V. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.e Scoring ^Insights

12.f DCF ^BETA