Report
Håkon Astrup
EUR 91.87 For Business Accounts Only

Gjensidige Forsikring (Hold, TP: NOK216.00) - Alpha underwriting performance

While the 76% combined ratio and 9.1% underlying premium growth demonstrate a superior competitive position, we also find the distribution of a NOK4.0/share special dividend an indication of a rather confident near-term outlook. We have lifted our 2022–2023e EPS by 3–4% and in turn our target price to NOK216 (210). While we still like Gjensidige’s strong position as market leader in Norway, combined with a bright near-term outlook, we continue to find the valuation fair at a 2022e P/E of ~19x and reiterate our HOLD.
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.

Provider
DnB Markets
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.

 

Analysts
Håkon Astrup

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