Kepler says Nordic insurers stand out, starts Sampo, Storebrand at 'buy'
BUZZ-Kepler says Nordic insurers stand out, starts Sampo, Storebrand at 'buy' ** Kepler Cheuvreux initiates coverage of the Nordic insurance sector noting it stands out in Europe for strong underwriting profitability and high capital efficiency
** The broker says that this advantage is "not driven by higher risk-taking or better claims ratios" but by highly concentrated markets and high customer retention
** It notes that the regional market dynamics alongside efficient distribution support materially lower expense ratios than those of European peers
** Kepler starts Finnish insurer Sampo SAMPO.HE and Norway's Storebrand STB.OL at "buy" as preferred names, citing their regional scale and strong structural growth
** The brokerage takes a more cautious stance on Danish insurer Tryg TRYG.CO and Norway's Gjensidige GJFS.OL, rating both "hold" as it sees "less compelling upside"
COMPANY | NEW RATING | NEW PT |
Sampo | "buy" | EUR 10.5 |
Storebrand | "buy" | NOK 216 |
Tryg | "hold" | DKK 160 |
Gjensidige | "hold" | NOK 272 |
(Reporting by Agnieszka Gosciak-Rabalska)
((Agnieszka.Gosciak@thomsonreuters.com))
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