Jefferies sees 'fading tailwinds' for Nordic insurers as prices moderate
BUZZ-Jefferies sees 'fading tailwinds' for Nordic insurers as prices moderate ** Jefferies takes a neutral stance on Nordic insurers, citing fading tailwinds as the current interest rate backdrop favours other financials while insurance prices decelerate
** The brokerage notes the sector's valuation premium has narrowed to historical lows, but points to "healthy fundamentals" and resilient earnings mitigating downside risk
** Within the group, the broker upgrades Norwegian financial services provider Storebrand STB.OL to "buy" from "hold", highlighting a structural growth runway and improving earnings mix
** Conversely, it downgrades Norwegian peer Gjensidige GJFG.OL to "hold" from "buy", arguing that decelerating insurance prices in the region offer less upside for the shares
** Jefferies adds that artificial intelligence risks for the industry are overstated, as high customer retention and direct distribution control make disintermediation difficult
** It keeps "hold" rating on Sampo SAMPO.HE and Tryg TRYG.CO
** The broker says upside from UK motor price hikes is offset by falling prices in Sampo's large commercial segment
** It adds commercial initiatives are unlikely to bring any meaningful upside in the near term for Tryg
(Reporting by Marta Frackowiak)
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