Nordic banks, insurers: Berenberg eyes dividend comeback for 2020

Topdanmark A/S

19/11/2020 12:05

** Berenberg expects Nordic banks to go back to paying
dividends and insurers to return to normalised capital returns
for 2020 earnings after a COVID-19 driven hiatus
    ** The brokerage says it is becoming harder for the Nordic
regulators to oppose dividends in light of the banks' strong
capital positions and solid profitability
    ** It sees the outlook for Nordic bank capital returns to be
better than eurozone peers
    ** Berenberg says insurers expect benign competition and
rational pricing to continue, and notes that low interest rates
highlight the need for underwriting discipline
    ** "We believe there is a need for scale and efficiency in
the Nordic insurance sector and expect further consolidation to
occur," the broker adds
    ** Among banks, Berenberg prefers "buy" rated DNB  DNB.OL ,
given its leading position in a rational market, "best-in-class"
cost efficiency and the better relative COVID-19 recovery in
Norway thus far
    ** Its top pick from insurers is Tryg  TRYG.CO  ("buy")
thanks to the company's sustainably high underwriting margins
and efficient capital management
    ** It has a "hold" rating on Handelsbanken  SHBa.ST , SEB
 SEBa.ST , Swedbank  SWEDa.ST , Gjensidige  GJES.OL , Topdanmark
 TOP.CO  and Sampo  SAMPO.HE , and "buy" on Nordea  NDAFI.HE 

 ((marta.frackowiak@thomsonreuters.com))