JPM says Nordic insurers are poised for comeback; upgrades Sampo

Tryg A/S

06/05/2025 10:04

** J.P.Morgan upgrades Finland's Sampo SAMPO.HE to "overweight" from "neutral" and initiates Denmark's Tryg TRYG.CO with "neutral" in an upbeat note on Nordic insurers

** In the past two years, Nordic players' shares have underperformed the sector by around 30%, but they are now "poised to step out of the shadows", JPM says

** "The Nordic markets are arguably the most attractive P&C insurance markets to operate in with high customer retention and best-in-class underwriting margins," it adds

** The broker says Sampo has been catching up with peers after restructuring and expects the company to launch a share buyback in the summer

** It also sees the Finnish P&C group exceeding its EUR 4.5 billion ($5.11 billion) capital generation target in 2024-2026

** Tryg has "excellent underwriting" and one of the lowest asset risks in the sector, JPM says, but flags relatively low earnings growth and limited near-term catalysts for the stock

** It adds that while a Danish market investigation may not impact Tryg's ability to produce strong returns, it can "constrain the stock's potential to outperform"

($1 = 0.8814 euros)

 (Reporting by Agnieszka Olenska)

 ((Agnieszka.Olenska@thomsonreuters.com;))