A new buy for my Vrijheid Fonds, I added some extra NN Group.
This is my fourth buy of NN group NV in 2020.
As I already told you in my buy post of April, NN has temporarily suspended the buyback of its own shares and dividend. This to be in accordance with the recommendations of EIOPA and the Dutch Central Bank (DNB) published on 2 April 2020, which urge insurers to temporarily suspend their dividend distributions and share buyback programmes as a consequence of the COVID-19 pandemic
If we look at the figures of NN in their annual report and read the press release of the CEO of NN, in which he stated that NN is capitalized, I think NN has sufficient resources to continue to reward shareholders.
Vivat
On 7 June 2019, NN Group and Athora announced that they reached a binding agreement with Dajia Insurance, previously known as Anbang Group Holdings Co Ltd, in respect of the intended acquisition of all activities of VIVAT.
One important hurdle to be overcome by takeovers like this, is the clearance from the Dutch Authority for Consumers and Markets (ACM). And in November 2019 NN obtained this clearance.
On April 1st 2020, NN Group announces the completion of its acquisition of VIVAT Schadeverzekeringen N.V. (VIVAT Non-life). With this takeover NN acquires some 300,000 new insurance policies and becomes the leading player in the Dutch Non-life insurance market. NN has shown with the acquisition of Delta Lloyd in 2017 that they are able to create synergy and cost reduction with a takeover. So at this point, the future looks bright.
David Knibbe, CEO NN Group: “This is an important milestone for NN Group. The completion of the acquisition of VIVAT Non-life adds additional scale and capabilities to our Non-life platform, enabling us to further improve our customer propositions and to increase our ability to invest in digital capabilities and innovation. We welcome VIVAT Non-life employees, customers and partners and look forward to continuing to serve customers and intermediaries.”
Their good balance sheet, their strong liquidity position, the intention that the distribution to shareholders is made in the second half of 2020 nand the possible synergy of the VIVAT takeover gave me enough confidence to proceed and make my fourth buy of NN Group in 2020.
Purchase
On May 4th I bought 39 additional shares of NN Group NV at €25.51 per share (incl. fees).
In this post I assume that NN group will pay the total dividend at the end of 2020. Then with this buy I added a little bit more than €71 (after taxes) of projected dividend to my Vrijheid Fonds for 2020. Now I own 163 shares of NN, and this position produces € 299 ($327) after taxes in dividend income annually.
Again, a small step in my journey and one-step closer to my goal.
What do you think about my recent stock purchase? And what do you think about their dividend? Will NN Group pay the total dividend in the second have of 2020? I like to hear from you.
Cheers,
Pollie
Disclaimer: I’m not a registered investment adviser, investment professional, brokerage firm or investment company. Readers are advised that information on the website is issued solely for information purposes and not to be construed as an offer or recommendation to buy, hold, or sell any securities. All information, opinions, and analyses included are based on sources believed to be reliable, but no representation or warranty is made concerning accuracy, correctness, timeliness, or appropriateness. Please consult with an investment professional before investing any of your money.
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