JPM upgrades NN Group on Dutch pension reform potential, cuts ASR

ASR Nederland NV

02/07/2024 08:16

** J.P.Morgan upgrades Dutch insurer NN Group NV  NN.AS  to
"overweight" from "neutral" seeing it as a "strong" beneficiary
of Dutch pensions reform
    ** It downgrades its peer ASR Nederland  ASRNL.AS  to
"neutral" from "overweight" on lower estimates for non-life
insurance and fee-based businesses
    ** "Hence, while NN has been a strong relative performer, we
think this could continue given scope for positive surprise on
earnings and capital return relative to ASR" - JPM
    ** There is scope for NN to increase buybacks above its
current 300 million euros commitment due to its strong balance
sheet flexibility, JPM also notes
    ** It adds that ASR's capital flexibility could improve
thanks to synergies from the Aegon Netherlands acquisition, but
it anticipates lower capital return than its Benelux peers
    ** JPM hikes its PT for NN by 24% to 62 euros, while cutting
on ASR by 3.7% to 52 euros
        ** By 0711 GMT NN's stock is up 1.2%, ASR slips 3%
  


 (Reporting by Gianluca Lo Nostro)
 ((gianluca.lonostro@thomsonreuters.com))