DnB Markets - Gjensidige Forsikring ASA (GJF) Gjensidige Forsikring (Buy, TP: NOK195.00) - Solid underwriting performance

Report

DnB Markets

Håkon Astrup

EUR 92.37 For Business Accounts Only

Gjensidige Forsikring (Buy, TP: NOK195.00) - Solid underwriting performance

Strong growth from repricing and favourable FX led Q1 insurance revenues to rise 10% YOY, which along with a 1.4%-points improvement of the combined ratio yielded an insurance service result of NOK1,115m, up 23% YOY. Although the underlying claims trend was softer, adjusting for large claims and run-off gains, much of this was due to poor Q1 weather conditions, which Gjensidige does not adjust for in its underlying calculations. We have made only modest 2024–2025e EPS revisions due to this report and reiterate our BUY and NOK195 target price.

28/04/2023 1 EN

Underlying

Gjensidige Forsikring ASA

Gjensidige Forskring provides insurance products to private and commercial customers in Norway, Denmark, Sweden and the Baltic states. Co.'s activities are divided into six segments in addition to the asset management unit which manages Co.'s investment portfolio. The Private segment provides a range of general insurance products besides banking, savings and investment products. The Commercial segment provides a range of general insurance products to the commercial and municipality markets. Co.'s investment portfolio includes all investment funds in Co. except for investment funds in the Pension and Savings and Retail Bank segments. Co.'s other segments include Nordic and Baltics.

See profile

NO0010582521 Oslo Bors Norway

Provider

DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

See profile

Analysts

Håkon Astrup

Other Reports on these Companies

ABG Sundal Collier

Striving to improve margins - up to BUY

Weather weight as expected, but a more bullish margin story evolving. We increase our estimates by 5-10% from improved UW. Up to BUY (Hold) with TP NOK 195 (171); 10% upside.

April 26, 2024 April 26, 2024 1 EN

DnB Markets

Gjensidige Forsikring (Buy, TP: NOK197.00) - Turning point in sight

Harsh weather during Q1 led to elevated claims and a combined ratio deterioration of 5.7%-points YOY despite insurance revenues growing 11% YOY. Adjusting for weather and other items, the claims ratio improved 0.2%-points YOY, a sign that the sharp repricing efforts during 2023 are starting to take effect. Combined with signs of abating claims frequencies and further repricing, we expect continued underwriting improvements. We reiterate our BUY, having raised our 2025–2026e EPS by 3% and our target price to NOK197 (190).

Free Trial

April 25, 2024 April 25, 2024 1 EN

ABG Sundal Collier

Weather weighs on underwriting; life beat (corrected)

Adj. PTP -7% vs IR cons, -3% vs ABGSCe, as reported CR 92.6%. High premium growth of 11%, in line with us and cons. Cons. est. -1% to -3% amid UW, life mute; stock -1% to -4%

April 25, 2024 April 25, 2024 1 EN

Sinch (Buy, TP: SEK52.00) - New reporting structure implemented

With a new reporting structure, focus will be on headline numbers (the Q1 report is due at 07:30 CET on 7 May). We forecast 6% organic gross profit growth YOY, and we believe this is about in line with consensus. We reiterate our BUY and SEK52 target price.

Free Trial

16h / 32m 16h / 32m 1 EN

Stefan Gauffin

Stefan Gauffin

Truecaller (Buy, TP: SEK46.00) - Facing easy comparables in Q1

We believe our Q1 revenue assumptions could prove conservative (results due at 07:30 CET on 7 May), but we are still 3% above consensus on sales and 5% above on EBITDA. We reiterate our BUY and have raised our target price to SEK46 (40) on higher peer multiples.

Free Trial

16h / 38m 16h / 38m 1 EN

Jørgen Lian

Jørgen Lian

Safe Bulkers Minor model adjustments

We have updated our estimates, owing to the Q1 report and its updated contract backlog at healthy rates providing visibility on cash flows for the coming quarters. The market is still pricing Safe Bulkers at c50% of NAV, which screens at a noticeable discount to peers’ average P/NAV of ~0.8x. This, along with its contract portfolio, continues to provide relatively attractive exposure to the dry bulk segment, despite potential downside risk to demand on fundamental drivers in China (importer of ~50% of all volumes). We do not consider these changes to be material, and we have not changed our BU...

Free Trial

May 1, 2024 May 1, 2024 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Gjensidige Forsikring (Buy, TP: NOK195.00) - Solid underwriting performance

Striving to improve margins - up to BUY

Gjensidige Forsikring (Buy, TP: NOK197.00) - Turning point in sight

Weather weighs on underwriting; life beat (corrected)

Sinch (Buy, TP: SEK52.00) - New reporting structure implemented

Truecaller (Buy, TP: SEK46.00) - Facing easy comparables in Q1

Safe Bulkers Minor model adjustments

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe