Danish insurers Tryg, Topdanmark fall after downbeat Q2

Tryg A/S

11/07/2023 13:37

(Updates shares, rewrites to add analyst comments from ABG
Sundal Collier, Copenhagen index)
    ** Danish insurer Tryg  TRYG.CO  falls 4.5% and peer
Topdanmark  TOP.CO  slides 3% after both missed Q2 profit
forecasts
    ** Tryg's Q2 net profit was DKK 922 million ($136 million),
13% below consensus according to Jyske Bank analysts
    ** The result was hit by higher weather claims and weak
investment activity, Jyske Bank says
    ** ABG Sundal Collier analyst Jan Erik Gjerland says Tryg's
income in Norway and Sweden also suffered due to NOK and SEK
depreciation against DKK
    ** Topdanmark said on Monday it expects Q2 profit of about
DKK 260 million, which Gjerland says missed expectations by 28%
    ** It also cuts 2023 profit forecast citing lower investment
level
    ** "Topdanmark missed bottom line expectations ... from some
of the same reasons as we have seen in Tryg, weaker reported
underwriting (large losses and increased frequency) as well as
difficult financial markets," Gjerland says
    ** He also highlights more frequent motor insurance claims,
which Topdanmark saw in Q2 and said would continue in H2
    ** The stocks are among worst performers on the pan-European
STOXX 600 index  .STOXX 

($1 = 6.7815 Danish crowns)

 (Reporting By Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))