Morgan Stanley analyst Daniel Wilson-Omordia has maintained their neutral stance on 0R78 stock, giving a Hold rating on April 2.
Daniel Wilson-Omordia has given his Hold rating due to a combination of factors influencing Tryg A/S’s financial performance. The company’s first-quarter results were mixed, with a notable increase in net profit driven by volatile investment results and lower large/weather claims, which are considered low-quality profit drivers. Additionally, the company’s insurance revenue fell short of expectations, partly due to lower retention rates and foreign exchange impacts, which could raise concerns about future revenue stability.
Furthermore, while the investment results exceeded expectations, this was primarily due to temporary factors such as the narrowing of spreads between rate swaps and covered bonds, rather than sustainable operational improvements. The underlying underwriting profit remained largely in line with expectations, with a slight improvement in the Private underlying claims ratio. However, management’s response to the Danish Insurance Competition report left some issues unaddressed, particularly regarding the loyalty penalty debate, which could have implications for the company’s future performance. These elements collectively support the Hold rating, suggesting a cautious approach to the stock.
In another report released on April 2, Citi also downgraded the stock to a Hold with a DKK152.00 price target.