Tryg (Buy, TP: DKK182.00) - Confident three-year outlook
Tryg’s new 2024 targets revealed at the CMD suggest a rather confident medium-term outlook, with an ambitious technical result target of DKK7.0bn–7.4bn and a continued improvement in underwriting profitability in the coming years. We still see a favourable risk/reward, with the stock trading at a 2023e adj. P/E of 17.4x, and scope for the distribution of close to 20% of its current market cap as dividends/buybacks in 2021–2024e. We have lifted our 2022–2024e EPS by ~3-4% and in turn our target price to DKK182 (177), and reiterate our BUY.Tryg is an insurance company, engaged in providing insurance services. Co.'s private segment encompasses the sale of insurance products to private individuals in Denmark and Norway. Co.'s commercial segment encompasses the sale of insurance products to small and medium-sized businesses in Denmark and Norway. Co.'s corporate segment sells insurance products to corporate customers under the brand Tryg in Denmark and Norway, Moderna in Sweden and Tryg Garanti. Co.'s Sweden segment comprises the sale of insurance products to private customers under the Moderna brand. Moreover, insurance is sold under the brands Atlantica, Bilsport & MC, Securator and Moderna Djurforsakringar.
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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