DnB Markets - Gjensidige Forsikring ASA (GJF) Gjensidige Forsikring (Buy, TP: NOK210.00) - Still more room for dividends

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DnB Markets

Håkon Astrup

EUR 92.90 For Business Accounts Only

Gjensidige Forsikring (Buy, TP: NOK210.00) - Still more room for dividends

Gjensidige reported Q4 pre-tax profit of NOK1,694m, up 2.6% YOY (adjusted for the gain on the Oslo Areal sale booked in Q4 2021). Despite still-strong premium growth, higher claims in Commercial Norway and Denmark led to a 2.3%-point deterioration in the underlying claims ratio YOY. A Q4 Solvency II ratio of 179% was around the mid-point of the 150–200% guidance, and the board proposed a DPS of NOK8.25 for 2022. We reiterate our BUY, but have lowered our target price to NOK210 (220).

25/01/2023 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.

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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.

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Analysts

Håkon Astrup

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Gjensidige Forsikring (Buy, TP: NOK210.00) - Still more room for dividends

Striving to improve margins - up to BUY

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

Weather weighs on underwriting; life beat (corrected)

Nokian Tyres (Hold, TP: EUR9.00) - Soft Q1, with or without setbacks

Lyko Group (Sell, TP: SEK95.00) - Stretched balance sheet

Resurs Holding (Buy, TP: SEK18.00) - Resur-recting the case

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