Elliott Takes Stake in Dutch Insurer NN, Pushes for Change
Elliott Takes Stake in Dutch Insurer NN and Pushes for Change
(Bloomberg) --
Elliott Management Corp. disclosed a stake in NN Group NV, saying it will push for “value creation” at the Dutch insurer.
The activist fund controlled by Paul Singer reported a 3.04% holding in NN, according to a regulatory filing on Thursday. Elliott is teaming up with former Allianz SE executive Dieter Wemmer, who has also taken a stake in NN.
Elliott and Wemmer’s investment “reflects their belief in the material and sustainable value creation opportunity that exists at the company,” the fund said in a statement. “Elliott and Mr. Wemmer have engaged in a constructive dialogue with NN Group’s management and look forward to continued private engagement.”
The insurer, based in The Hague, has taken note of the filing, with a spokesperson adding that it never comments on conversations with its shareholders.
NN Group is one of the Netherlands’ largest insurers and has a market value of almost 13 billion euros ($14 billion). Before Thursday, its shares were little changed over the previous 12 months. Chief Executive Officer David Knibbe, who took the role in October, is due to give investors his first strategy presentation in June.
Elliott is one of the world’s most aggressive activist investors, and in little over a year has pushed for changes at Softbank Group Corp., AT&T Inc., and EBay Inc. NN is the fourth Dutch company since 2017 that Elliott has targeted; its most high-profile local investment was paint maker Akzo Nobel NV, which it pressed to consider merging with a rival.
Elliott wants NN to consider asset sales to improve profitability and cut costs, according to a person familiar with the matter. The activist investor also thinks NN is too exposed to the risk of policyholders living longer than expected, the person said, requesting anonymity to discuss private talks.
--With assistance from Joost Akkermans and Scott Deveau.
To contact the reporter on this story: Ellen Proper in Amsterdam at eproper@bloomberg.net
To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Joost Akkermans
©2020 Bloomberg L.P.