DnB Markets - Gjensidige Forsikring ASA (GJF) Gjensidige Forsikring (Buy, TP: NOK220.00) - Record-strong underwriting quarter

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DnB Markets

Håkon Astrup

EUR 92.37 For Business Accounts Only

Gjensidige Forsikring (Buy, TP: NOK220.00) - Record-strong underwriting quarter

A record-strong underwriting result of NOK1,909m was not enough to offset the investment losses caused by continued financial market turmoil, leading to a notably softer pre-tax profit YOY. The strong underwriting trend persisted too, with 8.2% YOY local-currency premium growth. We continue to believe Gjensidige will stay ahead of claims inflation, and have raised our 2023–2024e EPS by 1–2% on expectations of higher growth and continued robust underwriting. We reiterate our BUY and NOK220 target price.

23/10/2022 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: NOK220.00) - Record-strong underwriting quarter

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

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