Tryg (Hold, TP: DKK155.00) - Run-offs offset higher large claims
Tryg reported a decent set of Q3 results hurt by high weather and large claims, offset by higher run-off gains. Adjusted for these effects, the combined ratio came in at 85.7%, ~1%-point above consensus of 84.9%. The Q3 underwriting result was particularly weak in Norway with a combined ratio adjusted for run-offs of 98.8%, which was hurt by a single claim for DKK130m. We have made only small changes to our 2019–2020 EPS estimates. We continue to find Tryg’s valuation demanding, but struggle to see any triggers on the downside. We reiterate our HOLD and DKK155 target price.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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