NÜRNBERGER Beteiligungs-AG: Traditional German Insurance Company

Brief Summary for Investors: NÜRNBERGER Beteiligungs-AG is an established German insurer with a broad portfolio of products for private and business customers. The latest quarterly figures show significant fluctuations and a current burden on profitability.

Development The share price showed a stable sideways movement in the range of €70-€80 from 2020 to the beginning of 2023. Since mid-2023, a clear downward trend has been observed, accelerating to below €50 by mid-2025 before a certain recovery began. This development correlates with volatile operating performance. While the 2020-2022 annual figures showed solid profits (EPS: €5.47-€6.72), the quarterly data from 2023 onwards show significant fluctuations in net income. The most recent quarter (Q2 2024) showed a significant loss (EPS: -2.07 EUR), which represents a drop compared to the positive prior-year quarter (EPS: 1.84 EUR). The return on equity (ROE) is negative in the current quarter (-2.65%).

Opportunities: The broad and diversified product offering and the focus on the stable German market offer a certain resilience. The positive free cash flow per share in the current quarter (6.78 EUR) indicates solid operating cash generation despite the loss. The recent recovery of the share price from its lows could signal the first signs of a valuation correction.

Risks: Current profitability is under considerable pressure, as demonstrated by the negative EBITDA and net income in the most recent quarter. The low return on assets (ROA: -0.07%) and weak liquidity (current ratio: 0.58) are alarming. The high volatility in quarterly results makes forecasting difficult and indicates potential operational challenges or fluctuations in insurance benefits.

Additional Notes: The annual EBITDA figures are shown as 0 in the provided data for 2022 and 2023, which indicates a possible differing reporting methodology or reclassification and requires a closer review of the annual reports. The sharp decline in the share price preceded the publication of the weak quarterly figures.

Conclusion: The company is going through a difficult phase. The historically stable share price trend has been replaced by a recent negative performance, which is fundamentally underpinned by the weak current quarterly figures and problematic key metrics. While the market has already significantly corrected the share price downwards, the current operating performance is not worth investing in. An investment would be purely a speculative bet on a sustained recovery in profitability, the occurrence of which is currently not foreseeable.

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