Berenberg cuts Gjensidige on high claims volatility in Norway

Gjensidige Forsikring ASA

16/07/2024 11:08

** Berenberg downgrades Gjensidige Forsikring  GJFG.OL  to
"sell" from "hold", citing the insurer's high exposure to the
volatile Norwegian market with more frequent claims across its
Motor and Property products
    ** Claim trends in Norway are structurally challenging due
to higher exposure to EVs, the broker says
    ** "Recent M&A and market consolidation highlight
Gjensidige's lack of diversification and scale, making it more
susceptible to claims volatility than peers," it adds
    ** It expects Gjensidige to struggle to meet its respective
2025 and 2026 combined ratio targets of 84% and 82%, and says
underwriting profitability will likely not improve as quickly as
the market expects
    ** It lowers PT by 13% to NOK 160 from NOK 183.9
    ** Shares in Gjensidige fall nearly 3% to NOK 178.60
    ** Out of 16 analysts covering Gjensidige, seven rate it
"strong buy" or "buy", five "hold", and four "sell" or "strong
sell" - LSEG

 (Reporting by Tilla Sjaavaag)
 ((tilla.sjaavaag@thomsonreuters.com))