Gjensidige Forsikring (Hold, TP: NOK180.00) - Demonstrating its pricing power
Gjensidige’s Q2 results were in our view a demonstration of its strong market position and pricing power. After having pushed through price increases of ~6% throughout the past year, Gjensidige reported a 79.3% combined ratio, beating underlying estimates by ~3%-points in a quarter with relatively normal weather conditions. We believe Gjensidige’s valuation appears demanding at a 2020e P/E of 21x despite our being c3% above consensus EPS. However, we do not identify any negative share price triggers and thus reiterate our HOLD. We have raised our EPS estimates by 2% on the strong report and have lifted our target price to NOK180 (170).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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.