Calendar schreef op 28 september 2023 13:28:
AMSTERDAM, Sept 28 (Reuters) - A sharp selloff in shares of Dutch insurance companies NN Group and ASR this week due to an unfavourable court ruling was an over-reaction, ING said in an analysis published on Thursday.
The companies' shares were hit by a Sept. 26 Dutch appeals court ruling that suggested customer compensation for deficient products sold in the 1990s and 2000s had not been enough.
Shares in both companies fell by more than 10% on Wednesday, with NN down another 1.3% at 29.04 euros on Thursday and ASR off 1.9% at 34.18 euros.
"We strongly believe there was an over-reaction," ING wrote, noting that a settlement is not likely until 2027, following a Supreme Court decision.
The bank estimated that if affected customers receive double the compensation it had previously modelled, it could mean a provision of 739 million euros for NN and of 926 million euros for ASR.
It said that while the insurers may slow their share buy-back programs, it did not currently believe that dividends would be affected.
The suit revolves around investment-linked insurance polices where customers were improperly informed as to how much of their premiums went to fees.
NN said it would appeal against the interim judgment, and while it did not lead to an immediate obligation to compensate customers, it could ultimately have "substantial" financial consequences, which can't currently be reliably estimated.
ASR said it would study the judgment and then decide whether to appeal but declined further comment.
(Reporting by Toby Sterling; Editing by Kirsten Donovan)
((toby.sterling@thomsonreuters.com;))