Bloomberg News

Tryg Gains as Cost Efficiency Seen Improving: Copenhagen Mover

March 23, 2012

Tryg A/S (TRYG) rose to its highest in six weeks in Copenhagen trading after Danske Bank A/S said clients should buy the stock because the second-largest Nordic property and casualty insurer is getting better at managing its costs.

Tryg rose as much as 1.7 percent to 318.5 kroner, the highest price since Feb. 8, making it today’s biggest winner in the MSCI Nordic Financials Index (MXND0FN) (MXND0FN) of 16 companies. The shares rose 3.3 kroner to 316.4 kroner at 2:35 p.m. in the Danish capital.

Danske’s Per Gronborg today raised his recommendation on Tryg to buy from hold, saying the Ballerup, Denmark-based company should no longer trade at a discount to other insurers. Tryg had a combined ratio, a measure of costs and claims as a percentage of premiums, of 93.5 in 2011, compared with 90.3 for Topdanmark A/S (TOP), its biggest listed Danish rival, according to the two companies’ recent earnings reports.

“Tryg has been the high top-line growth, high claims inflation story with a low cash conversion, but we see the profile changing,” Copenhagen-based Gronborg said in a note.

He raised his 12-month price estimate on Tryg shares to 385 kroner from 320 kroner. With that increase, the average price estimate advanced to a 10-week high of 317.4 kroner today, according to data compiled by Bloomberg that includes surveys from 13 analysts.

Peter Fledelius, Nordea Market’s analyst in Copenhagen, on March 16 also raised his recommendation on Tryg shares to buy from hold.

To contact the reporter on this story: Christian Wienberg in Copenhagen at

To contact the editor responsible for this story: Tasneem Brogger at

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