First Read: Nordic Insurance "Potential introduction of P&C VAT in Norway" Lu

Research evidence excerpt

First Read: Nordic Insurance "Potential introduction of P&C VAT in Norway" Lu

Valuation Method and Risk Statement

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Gjensidige Forsikring ASA:

Besides the overall economic environment, investors in Gjensidige face a range of insurance-

specific risks that may have either favourable or unfavourable impacts on shareholders. These

risks encompass, but are not limited to: (i) underwriting risks, where pricing and/or reserves

do not align with trends in claims costs and expenses, influenced by factors such as inflation

changes, variations in claims frequency and severity, the occurrence of extraordinary events

like natural disasters, policyholder demographics and behaviours, and investment returns; (ii)

market risks, which involve variations in interest rates, foreign exchange rates, credit spreads,

and other asset investments by Gjensidige, potentially affecting earnings as well as capital

and solvency; (iii) regulatory and legal risks, which may include changes to competition

regulations and general practices, accounting, taxation, and capital requirements; and (iv)

additional risks such as counterparty default risks, liquidity risks, and operational risks,

including mergers and acquisitions. Our PT is SOTP derived, rolled forward 12 months.

Tryg A/S:

Investors in Tryg are exposed to various insurance-specific risks beyond general economic

factors. Key risks include: (i) underwriting risks, where inadequate pricing or reserves may not

cover unexpected claims/expenses due to inflation, increased claims frequency/severity,

extraordinary events such as natural disasters and changes in policyholder behaviours; (ii)

market risks, which involve fluctuations in interest rates, foreign exchange, and credit spreads