Storebrand (Buy, TP: NOK80.00) - A quarter of tailwinds
We expect a quarter of tailwinds given strong equity markets, high savings rates and an uptick in long-term interest rates, with a Q4 EPS adj. of NOK1.7 and a 12%-points QOQ uptick in Storebrand’s Solvency II ratio. A year-end Solvency II ratio of 162% increases the likelihood of extraordinary capital distributions commencing before 2023. For 2020e, we forecast a DPS of NOK3.3, a 59% payout ratio. We have raised our target price to NOK80 (75) and reiterate our BUY.Storebrand ASA is the parent company in a financial group. Co. is a provider of pension savings. Co. provides range of products within life insurance, property and casualty insurance, asset management and banking, to companies, public sector entities and private individuals. Co.'s corporate organization includes the business areas of Savings, which comprises of non-guaranteed Defined Contribution in Norway and Sweden, Asset Management and Bank products to the retail market; Insurance, which includes Co.'s risk products; Guaranteed Pensions, which includes long-term pension savings products that give customers a guaranteed rate of return; and Other.
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.