Gjensidige Forsikring Q3 2025 Pre-Close Call Summary Company Overview - **Company**: Gjensidige Forsikring (OTCPK:GJNS.Y) - **Event**: Third quarter 2025 pre-close call - **Date**: September 29, 2025 Key Points Industry Context - The call highlighted the seasonality in the insurance business, noting that summer quarters (Q2 and Q3) typically have lower claims ratios compared to winter quarters (Q1 and Q4) [3] - There were no significant natural peril events in Scandinavia during the quarter, with overall weather being warmer and drier than historical norms [3] Financial Updates - The company will release its Q3 results on October 24, 2025, with a silent period starting on October 1 [2] - A write-down of NOK 123 million related to the sale of the Baltics business (ABG) was noted in the Q3 2024 report, impacting the comparison for this quarter [3] - The termination of the Core Suite IT system for the pension business will impact profit before tax by approximately NOK 400 million in Q3 2025, but will not affect the group's eligible owned funds in the Solvency II calculation [4] - The expectation for large losses in 2025 is approximately NOK 500 million per quarter, which is an estimate and not a guiding figure [5] Capital and Solvency - The eligible funds at the end of Q2 included approximately NOK 510 million of the NOK 900 million Tier 2 bond issued in October of the previous year [6] - The net increase in owned funds from the new Tier 1 loan and buybacks is NOK 711 million, which will be included in the Q3 calculation of owned funds [6] Investment Portfolio - The company plans to estimate returns based on the same asset allocation as the previous quarter, applying returns on listed indices [7] Additional Notes - The call included reminders for participants to submit their estimates by October 10, 2025, and the consensus will be published on October 17, 2025 [2] - There was no Q&A session as no questions were raised during the call [8]

Core Insights - Labcorp Holdings Inc. is positioned for growth due to the robust performance of its Biopharma Laboratory Services segment and a strong focus on operational efficiency [1][3][5] - The company has experienced a 24.1% stock increase over the past year, outperforming the industry and the S&P 500 [2] - Despite strong financial health and operational initiatives, macroeconomic challenges may limit Labcorp's growth potential [1][9] Financial Performance - Labcorp has a market capitalization of $23.04 billion and an earnings yield of 5.8%, surpassing the industry's 4.2% [2] - The company reported a 11% year-over-year growth in its Biopharma Laboratory Services segment in Q2 2025, with Central Laboratories growing by 8% and Early Development by 20% [3][8] - The Zacks Consensus Estimate for Labcorp's 2025 earnings remains at $16.30, with revenues expected to reach $14.00 billion, indicating a 7.7% increase from 2024 [10] Operational Efficiency - Labcorp is enhancing operational efficiency through initiatives like LaunchPad, which improved the adjusted operating margin by 20 basis points in Q2 [5][6] - The introduction of digital solutions such as the Labcorp Diagnostic Assistant and eClaim Assist aims to streamline workflows and improve billing efficiencies [6] Financial Health - As of Q2 2025, Labcorp had cash and cash equivalents of $793 million, short-term debt of $500 million, and long-term debt of $5.08 billion [7] - The company returned capital to shareholders through $59.9 million in dividends and $200 million in stock repurchases, with a dividend payout ratio of 19% [7] Challenges - Macroeconomic factors, including inflation and geopolitical tensions, have negatively impacted demand for diagnostic testing and drug development services, leading to an 8.1% increase in the cost of revenues year-over-year [9]

Core Insights - The insurance industry has shown overall stability in solvency capabilities for Q2 2025, with most companies meeting regulatory requirements for core solvency adequacy ratio and comprehensive solvency adequacy ratio [1][4][5] - However, five companies have been rated as C-level in risk comprehensive ratings, indicating significant deficiencies in governance and operational risks [4][5] Solvency Reports - A total of 60 non-listed life insurance companies and 76 non-listed property insurance companies have disclosed their solvency reports for Q2 2025 [1] - Among the disclosed companies, 14 have received AAA ratings, while five companies are below the solvency standards [1][4] Risk Ratings - The new C-ROSSII framework categorizes risk ratings into eight levels from AAA to D, with C-level indicating significant deficiencies in governance and various operational risks [4] - The five companies rated C-level include Huahui Life Insurance, Asia-Pacific Property Insurance, Anhua Agricultural Insurance, Huazhong Property Insurance, and Xinjiang Qianhai United Property Insurance [5] Capital Supplementation - In the first half of 2025, 13 insurance companies announced capital increase plans totaling nearly 50 billion yuan, significantly higher than the previous year [9] - Major players like Ping An Life and CITIC Prudential Life have also announced substantial capital increases to strengthen their financial positions [9][10] Regulatory Environment - The transition period for the new solvency regulations has been extended to the end of 2025, allowing companies more time to adapt and mitigate capital pressures [8] - Companies are encouraged to optimize their capital structures and improve risk management systems to address challenges related to governance and liquidity risks [8] Company Actions - Several companies, including Huazhong Property Insurance, have established special control mechanisms to address governance and liquidity risks [8] - Huahui Life Insurance reported that its solvency is adequate, with good asset liquidity and manageable risks [6]

Core Viewpoint - Entergy Corporation (ETR) is focusing on consistent infrastructure investments and expanding its renewable generation portfolio, making it a solid investment option in the Zacks Utility Electric Power industry [1] Growth Forecast & Surprise History - The Zacks Consensus Estimate for ETR's 2026 earnings per share (EPS) has increased by 0.7% to $4.35 over the past 60 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $12.54 billion, indicating a year-over-year growth of 5.6% [2] - ETR's long-term earnings growth rate is estimated at 9.5%, with the company surpassing expectations in the last four quarters and delivering an average earnings surprise of 12.06% [2] Return on Equity - Entergy's return on equity (ROE) stands at 11.43%, outperforming the industry's average of 10.09%, indicating more efficient fund utilization [3] Solvency - Entergy's times interest earned (TIE) ratio was 2.4 at the end of Q1 2025, suggesting the company can meet its interest payment obligations without difficulty [4] Capital Allocation Strategy - Entergy plans to invest $37 billion between 2025 and 2028 to modernize, decarbonize, and diversify its portfolio, focusing on upgrading distribution, generation, and transmission while supporting renewable expansion [5][9] Grid Hardening Investments - The company has invested significantly in grid hardening, spending $144 million on distribution construction in Q1 2025 to enhance the reliability of its distribution system [6] Return to Shareholders - Entergy has been increasing shareholder value through solid dividend payments, with a current quarterly dividend of 60 cents per share, resulting in an annualized dividend of $2.40 and a dividend yield of 2.95% [7] Stock Performance - ETR shares have gained 52.3% over the past year, significantly outperforming the utility industry's growth of 16.6% [9][10]

Investment Rating - The report maintains a "Buy" rating for China Life H, Ping An, and upgrades PICC P&C to "Buy" from "Neutral" [3][7]. Core Insights - Chinese insurers have outperformed the HSI/CSI300 indices since early March, primarily due to fund-flow related factors and expectations of increased inflows into the A-share market [1][8]. - Despite recent share price strength, most insurers are trading at or above 1 standard deviation of their 3-year historical P/B, indicating potential near-term downside risks due to challenging fundamentals [2][8]. - There has been a tangible improvement in shareholder returns, with several insurers announcing stable or progressive dividend targets and considering share buybacks, aligning with government objectives to enhance SOE valuations [3][43]. Summary by Sections Investment Ratings and Price Targets - The report raises FY25E EPS estimates by 3-46% for covered companies, reflecting better-than-expected 1Q25 results and equity market performance [4][56]. - Target prices for PICC P&C are raised to HK$16.10 from HK$12.90, implying a 1.1X FY26E P/B and 9.8X FY26E P/E [4][57]. - Target prices for PICC Group H/A are increased by 20%/11% to reflect new valuations for PICC P&C, while other life insurers see target price increases of 4-10% [4][57]. Market Performance and Valuation - H-share insurers have outperformed since early March by more than 10%, although YTD performance remains relatively unchanged compared to indices [8][9]. - The report notes that long-term bond yields have remained depressed, impacting book value and solvency, with a decline in net investment yield expected due to muted equity market performance [2][25][27]. Shareholder Returns and Capital Management - Several insurers have announced plans for stable or progressive dividends and share buybacks, with PICC P&C positioned to increase shareholder returns due to an excess capital balance of RMB 47 billion as of FY24 [3][43][51]. - China Life is highlighted as having a strong balance sheet but a low current payout ratio, indicating potential for increased shareholder returns [3][43]. Earnings and Profitability Outlook - The report anticipates muted book value growth in 2Q25, with long-term bond yields declining to levels seen at the end of 2024 [27][56]. - Net profit for most life insurers declined in 1Q25, reflecting lower equity investment gains compared to 1Q24, with expectations for small profit growth in 2Q25 but a meaningful year-over-year decline for FY25 [27][38].