Buy signal on NN Group (NN-NL)
NN Group has a strong track record with a behavorial score of 8/10, therefore we consider the signal as a long term one.
NN Group is a € 15 Bn market cap insurance and investment management group with leading positions in life and non-life insurance in the Netherlands, a strong life and pensions presence in a number of other European markets (such as Poland, Hungary and Romania) and in Japan. NN Group N.V.'s insurance business is active in mature markets in Western Europe and Japan as well as growth markets in Central and Eastern Europe. NN Group N.V.'s investment management business offers its products and services globally, with the Netherlands as its main investment management hub.
NN Group N.V. offers a comprehensive range of retirement services, pensions, insurance, investments and banking to its retail, small or medium sized enterprises (SME), corporate and institutional customers.
For 2022, NN Group is expected to post a € 14.3 Bn revenue coupled with a € 1.6 Bn net profit. The stock currently offers a 5.7% dividend yield. The company has just sold its asset management branch to Goldman Sachs for €1.85 billion and is therefore refocusing on the insurance business.
NN Group benefits from rising long term rates, while it has low exposure to inflation, supply chain and Russia/Ukraine. It is also a value play, due to the strong dividend yield and undemanding valuation (PE of 9x 2022).
Short term catalyst: Rising long rates, dividend.
This signal is consistent with the bullish trend in the European Insurance sector. There is currently 52% of European Insurance stocks in bullish tactical and 52% in bullish strategic signal. The participation of Insurance stocks to the bullish momentum is growing steadily.