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NN Group (NNGRY)
OTHER OTC:NNGRY
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NN Group
(OTC:NNGRY)
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Rating:69Neutral
Price Target:
$44.00
▲(14.17% Upside)
Action:ReiteratedDate:11/17/25
NN Group's overall stock score is driven by strong technical indicators and a reasonable valuation. The company's financial performance shows profitability and operational efficiency, but challenges in revenue growth and cash management need to be addressed. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
High Profitability & Margins
NN Group's very high gross and robust EBIT/EBITDA margins reflect durable underwriting and cost discipline that support earnings even with top-line pressure. Strong margins provide buffer for underwriting losses, fund reserves and investment in growth over the medium term.
Stable Balance Sheet
Moderate leverage and a solid equity base give NN Group financial resilience versus severe shocks and regulatory capital needs. This balance-sheet strength supports long-term policyholder obligations and allows strategic flexibility for capital allocation or acquisitions.
Diversified Revenue Streams
Multiple income sources—life/non-life premiums, asset management fees and investment returns—reduce dependence on any single line. Distribution partnerships broaden reach and support steady fee and premium generation across economic cycles, enhancing revenue durability.
Negative Factors
Sustained Revenue Decline
A material decline in revenues erodes scale and can strain margins over time if persistent. Lower premiums and fee income limit reinvestment, raise per-unit fixed cost burdens and reduce ability to grow reserves and product distribution without strategic corrective actions.
Negative Operating Cash Flow
Negative operating and free cash flows reduce financial flexibility to fund claims, pay dividends, or invest in growth without selling assets or raising capital. Over months this can force reliance on investment returns or financing, increasing liquidity and refinancing risk.
Geographic Concentration Risk
Concentration in European markets exposes NN Group to regional demographic trends, low interest rate environments and regulatory changes that can structurally limit premium and investment income growth. Lack of geographic diversification raises susceptibility to regional shocks.
NN Group (NNGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.14B
Dividend Yield5.25%
Average Volume (3M)1.35K
Price to Earnings (P/E)17.4
Beta (1Y)0.33
Revenue Growth-15.10%
EPS Growth10.94%
CountryUS
Employees13,497
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)1.71
Shares Outstanding526,000,000
10 Day Avg. Volume0
30 Day Avg. Volume1,353
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)0.53
Price to Sales (P/S)1.04
P/FCF Ratio-28.58
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue1.67
Enterprise Value/Gross Profit1.67
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.76
Revenue Forecast (FY)$17.94B
NN Group Business Overview & Revenue Model
Company DescriptionNN 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.
How the Company Makes MoneyNN Group generates revenue through multiple key streams. Primarily, it earns income from premiums collected on its life and non-life insurance products, which include health, property, and casualty insurance. The company also generates revenue from asset management fees charged for managing investments on behalf of clients, which include pension funds and retail investors. Additionally, NN Group benefits from investment income derived from the assets it holds in its investment portfolio. Significant partnerships with financial institutions and distribution channels enhance its reach and customer base, contributing to its overall financial performance.
NN Group Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call showed strong commercial execution and financial delivery in 2025 with multiple measurable wins: OCG and free cash flow outperformance, a very robust Solvency II ratio, tangible AI/digital progress, and an enhanced, recurring shareholder return program. Key growth segments (Insurance Europe, Japan, Netherlands Non-life and DC inflows) delivered meaningful expansion in volumes and margins. Offsetting factors include a material disability reserve strengthening and repricing actions, some bank margin pressure, non-recurring tailwinds in 2025 that may not repeat, and non-operational IFRS volatility from certain bond and derivative revaluations. On balance, the positive operational and capital developments materially outweigh the challenges, though management flagged areas of transitory risk and one-off items that may temper near-term comparables.Q4-2025 Updates
Positive Updates
Exceeded 2025 Financial Targets
Operating Capital Generation (OCG) of EUR 2.1 billion, up 9% versus 2024, and Free Cash Flow slightly above the EUR 1.6 billion target, up 7% year-on-year, outperforming stated 2025 objectives.
Very Strong Solvency and Capital Position
Group Solvency II ratio at 220% and Netherlands Life solvency increased from 200% to 233%, with improved quality of capital after removing the unit-linked overhang.
Enhanced Shareholder Returns
Additional capital return of EUR 100 million split equally between a EUR 50 million step-up in the annual share buyback (now EUR 350 million) and a EUR 50 million dividend increase; Dividend per share raised by 13% to EUR 3.88. NN Group has returned over EUR 11 billion to shareholders since IPO.
Commercial Momentum in Growth Segments
Insurance Europe New Business Value (VNB) up 16% vs 2024; Japan VNB up 25% vs 2024 (approx. 30% currency-adjusted) and 34% when comparing from Q2 onwards; Netherlands Non-life gross written premium up 6%, surpassing EUR 4 billion for the first time; Netherlands Life DC inflows of EUR 2.6 billion.
Future Ready / AI Progress and Digital Sales
236 AI use cases implemented, 42% of sales come from digital leads, and 40% of the EUR 200 million annual benefit target (i.e., ~EUR 80 million run rate) realized by end-2025—demonstrating measurable digital productivity gains.
Operational Efficiency Improvements
Third-party car liability claims processing automated end-to-end—processing time reduced from 1–3 days to minutes. AI avatars train >9,000 tied agents (boosting conversion) and AIReply rolled out to improve email response efficiency in Dutch units.
Segmental Operating Trends & Outlook
OCG growth by segment: Netherlands Life +13% (benefiting from positive experience and higher investment returns in 2025), Europe +13% (higher sales and margins), Netherlands Non-life +9% (reported) and Japan +8% (despite limitations on deferring acquisition costs). 2028 targets reiterated: OCG EUR 2.2 billion and Free Cash Flow > EUR 1.8 billion.
Balance Sheet & Liquidity Actions
Holding cash capital increased to EUR 1.8 billion then pro-forma EUR 1.6 billion after RT1 repayment; RT1 notes redeemed Jan 2026. Intend not to refinance EUR 600 million senior debt maturing 2027; residual excess cash potential ~EUR 500 million (2025–2028) after announced returns and deleveraging.
Negative Updates
Disability (D&A) Deterioration and Reserve Strengthening
Deterioration in disability in H2 2025 (linked to long COVID and increased mental-health claims) led to reserve strengthening and repricing actions (more frequent repricing cycles). Disability was a notable weak point within an otherwise within-target combined ratio.
Combined Ratio & Non-Recurring Tailwinds
Overall combined ratio at 92.9% (within 91%–93% target) but P&C at 90.3% and disability lagged. Management acknowledged 2025 benefited from nonstructural tailwinds (benign weather, favorable reinsurance renewals and market effects) that may not repeat, contributing to guidance of a flat reported OCG in 2026.
Bank NIM Compression and Lower Bank OCG
Bank contributed less to OCG driven by net interest margin (NIM) compression; bank operating generation expected roughly stable in 2026 but remains a drag versus other segments.
IFRS/Non-Operating Volatility and One-offs
Net result decreased due to revaluations on derivatives outside hedge accounting, realized losses from certain bond sales (including U.S. bond sales in Dutch Life), and final accounting from the Turkish sale—creating non-economic volatility in reported IFRS results.
Market & Spread Tightness
Mortgage spreads tightened to ~75 basis points (versus normalized through-the-cycle ~100 bps), indicating tighter spreads across asset classes which could limit future spread income upside.
Expectation of Reduced Life OCG in 2026
Netherlands Life OCG benefited in 2025 from positive experience variances; management expects absence of those positive variances in 2026 and therefore a modest decrease in Life OCG versus 2025.
Accounting Method Adjustment Impact
Change in treatment of non-available own funds increased group solvency by ~4–5 percentage points (aligning with peers), but this is an eligibility/methodology change rather than pure operating performance and does not change local statutory solvency or remittance capacity.
Company Guidance
Guidance highlights: management expects flat reported OCG in 2026 after strong 2025 results (OCG €2.1bn, +9% y/y vs a €1.9bn target) and free cash flow slightly above the €1.6bn target (+7% y/y), while reiterating 2028 targets of OCG €2.2bn and free cash flow >€1.8bn; solvency remains robust (group Solvency II ~220%, NN Life ~233%), holding cash was ~€1.8bn at year‑end (pro‑forma ~€1.6bn after RT1 repayment) with a preferred holding range of €0.5–1.5bn, and operating capital generation in H2 was ~€1.1bn (adding ~13pp to solvency) while market variance added ~7pp; capital returns are being stepped up by €100m (split €50m extra dividend raising DPS to €3.88, +13%, and €50m higher buyback to €350m), >€11bn returned since IPO, management won’t refinance a €600m 2027 senior note and expects ~€1.5bn excess cash potential over 2025–28 (with ~€400m+ allocated to shareholders and ~€500m residual for value‑creating opportunities); growth and operational metrics include 236 AI use cases and 42% of sales from digital leads (40% of the €200m/yr 2027 run‑rate benefits realized by end‑2025), Insurance Europe VNB +16% y/y (decade avg ~12% annual new business growth), Japan VNB +25% (≈+30% FX‑adj) targeting recovery to 2022 VNB (JPY20bn) by 2028, Netherlands Non‑life GWP +6% to >€4bn with combined ratio 92.9% (P&C 90.3%), Netherlands Life DC inflows €2.6bn and immediate annuity gross inflow ~€0.8bn in 2025 (CAGR 10–15% to ~€1.4bn by 2030; annuity AUM target ~€10bn and >€65bn total AUM with a 15–20bp OCG margin by 2028).NN Group Financial Statement Overview
Summary
NN Group demonstrates strong profitability and operational efficiency, with high profit margins and a solid EBIT margin. However, significant revenue decline and negative cash flows highlight potential challenges in revenue generation and cash management. The balance sheet remains stable with moderate leverage and a strong equity base, providing resilience against financial uncertainties.Income Statement
The income statement shows a mixed performance with a significant revenue decline of 10.93% in the latest year, indicating potential challenges in revenue generation. However, the company maintains a strong gross profit margin of 92.39% and a net profit margin of 12.54%, reflecting efficient cost management and profitability. The EBIT margin of 25.71% and EBITDA margin of 26.96% are robust, suggesting solid operational efficiency despite revenue challenges.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.53, indicating moderate leverage and a manageable debt level. The return on equity (ROE) of 7.34% is reasonable, showing decent profitability relative to shareholder equity. The equity ratio of 10.25% suggests a strong equity base, providing a cushion against financial volatility.70
Positive
Cash Flow
The cash flow statement highlights concerns with negative operating and free cash flows, indicating cash management issues. However, the free cash flow to net income ratio of 1.0 suggests that the company is generating sufficient cash relative to its net income. The free cash flow growth rate of 3.62% is a positive sign, but overall cash flow health remains a concern.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.94B | 11.02B | 10.81B | -833.00M | 19.01B | 18.00B |
| Gross Profit | 13.94B | 11.66B | 11.40B | -418.00M | 17.70B | 16.75B |
| EBITDA | 0.00 | 3.40B | 2.72B | 1.38B | 4.50B | 2.86B |
| Net Income | 1.33B | 1.58B | 1.17B | 1.63B | 3.28B | 1.90B |
Balance Sheet | ||||||
| Total Assets | 206.11B | 210.38B | 208.94B | 217.11B | 251.59B | 263.74B |
| Cash, Cash Equivalents and Short-Term Investments | 110.64B | 112.98B | 8.21B | 88.56B | 114.81B | 130.56B |
| Total Debt | 13.31B | 11.53B | 14.10B | 15.40B | 12.24B | 11.95B |
| Total Liabilities | 184.38B | 188.72B | 187.82B | 199.28B | 216.67B | 224.97B |
| Stockholders Equity | 21.64B | 21.57B | 21.04B | 21.03B | 34.65B | 38.49B |
Cash Flow | ||||||
| Free Cash Flow | 249.00M | -401.00M | 62.00M | -8.22B | -2.64B | 6.95B |
| Operating Cash Flow | 249.00M | -401.00M | 62.00M | -8.18B | -2.59B | 7.00B |
| Investing Cash Flow | 1.10B | 2.56B | 4.53B | 6.08B | -1.83B | 550.00M |
| Financing Cash Flow | -393.00M | -3.41B | -2.99B | 1.76B | -741.00M | -1.50B |
NN Group Technical Analysis
Positive
38.54
Price Trends
39.40
Positive
37.38
Positive
35.22
Positive
Market Momentum
0.60
Positive
54.81
Neutral
60.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNGRY, the sentiment is Positive. The current price of 38.54 is below the 20-day moving average (MA) of 40.74, below the 50-day MA of 39.40, and above the 200-day MA of 35.22, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 54.81 is Neutral, neither overbought nor oversold. The STOCH value of 60.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NNGRY.
NN Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $39.13B | 10.58 | 21.66% | 1.55% | 7.11% | 22.52% | |
73 Outperform | $20.78B | 18.17 | 10.32% | 3.44% | 12.33% | ― | |
69 Neutral | $20.14B | 17.39 | 6.25% | 5.25% | -15.10% | 10.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $11.07B | 8.28 | 14.42% | 5.77% | -6.19% | ― | |
67 Neutral | $43.53B | 14.83 | 7.40% | 2.02% | -23.02% | 52.43% | |
46 Neutral | $11.35B | -8.39 | -182.66% | 2.15% | 7.70% | -155.12% |
* Financial Sector Average
NNGRY
NN Group
39.95
15.58
63.94%
AEG
Aegon
7.40
1.36
22.50%
AIG
American International Group
81.12
0.26
0.32%
HIG
Hartford Insurance
141.86
24.06
20.43%
PFG
Principal Financial
95.83
10.50
12.31%
EQH
Equitable Holdings
40.49
-12.67
-23.84%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.