Topdanmark: "Less expensive now" - HSBC ups to "hold"

Topdanmark A/S

21/07/2020 10:47

** HSBC upgrades Nordic insurer Topdanmark  TOP.CO  to
"hold" from "reduce", saying the stock is less expensive now and
remains a quality non-life franchise
    ** "Topdanmark offers a 5.9% dividend yield for 2020, in our
view, which is relatively attractive compared to its Nordic
non-life peers, but also broadly in line with the European
insurance sector average," the broker adds 
    ** The broker says it assumes the insurer will pay the
postponed half of its 2019 dividend per share (DPS) in early
2021 with the 2020 DPS, which HSBC expects to be 8.5 Danish
crowns ($1.31)
    ** It says Topdanmark appears significantly cheaper than its
closest non-life peer Tryg  TRYG.CO  ("reduce")       
    ** HSBC says the impact of COVID-19 on non-life underwriting
is mixed and sees Topdanmark's combined ratio deteriorating in
2020 but rebounding in 2021


($1 = 6.5080 Danish crowns)

 ((marta.frackowiak@thomsonreuters.com))