Topdanmark (Hold, TP: DKK300.00) - Q2 claims hit by fires
The Q2 underwriting result was negatively impacted by higher claims from fires due to the warm and dry summer weather (DKK110m effect YoY). This hit the corporate segment in particular and contributed to a ~3%-points miss on the combined ratio. We consider most of this miss to be weather-related and hence one-off in character. Due to a 1% beat on top line growth in Q2, and our improved assumptions for the pension segment, we have raised our 2019–2020e EPS by ~2%. We continue to find the valuation demanding and do not see any potential upside or downside triggers. We reiterate our HOLD and DKK300 target price.Topdanmark A/S is a Denmark-based insurance company engaged in the insurance and pension fund business. The Company's activities are divided into such segments, as Personal, and SME (Small and Medium Enterprises) and Industrial. The Personal segment sells policies for individual households in Denmark. The SME and Industrial segment offers policies for Denmark-based SME, agricultural and industrial businesses. The Company's private insurance offering includes such insurance products, as home, vehicle, accident, pet, child and life and health insurance, as well as pension funds. Its corporate insurance offering includes property insurance, insurance of goods and equipment, and car insurance, among others. As of December 31, 2012, it had subsidiaries responsible for life and non-life insurance, as well as for asset management, investment and property-related activities.
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.