Nordic non-life insurers' rational pricing to keep surprising - Berenberg

Tryg A/S

13/04/2022 09:42

** Nordic non-life insurance is relatively well positioned
amid the inflationary environment, Berenberg says, expecting
margins to remain robust through 2022 as "rational pricing will
keep surprising"
    ** The persistent rational pricing environment accommodates
price increases in line with and even ahead of claims inflation,
the broker says
    ** It expects underlying margins to keep marginally
improving thanks to the strong pricing momentum and January
renewals 
    ** The brokerage says high-quality cash flows give Nordic
insurers a defensive appeal against the current macro backdrop
and regardless of the premium valuations
    ** Berenberg sees all Nordic non-life companies "well
protected" despite the cost inflation, which has affected Norway
the most, followed by Sweden and Denmark
    ** Tryg  TRYG.CO  remains its top pick in medium term, and
it also sees plenty of catalysts for Sampo  SAMPO.HE  (both
"buy")
    ** The broker maintains "hold" on Topdanmark  TOP.CO , but
says it remains a fan of the stock as its downside is
effectively floored by a potential Sampo bid and a strong yield
    ** Berenberg also keeps "hold" Gjensidige  GJES.OL  seeing
little upside though underlying margins should remain robust 

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))