Solid H1 23 figures, IFRS 17 and 9 transition disturbing

• Insurance revenues were up by 1% to CHF2.7bn for H1 23 compared to H1 22 • Net profit attributable to shareholders decreased by 4% to CHF206m for H1 23 • RoE was 12.3% for H1 23

Solid 2022 figures hit by interest rate hikes, higher DPS

• Net profit attributable to shareholders decreased by 7% to CHF548m for 2022 • RoE was 9.4% for FY2022 compared to 8.3% for FY2021 • The dividend per share proposal increased from CHF7.00 for FY2021 to CHF7.40 for FY2022

Good 2021 figures and higher DPS

• Net profit attributable to shareholders rose by 36% to CHF583m for 2021 • RoE was 8.3% for FY2021 compared to 6.4% for FY2020 • The dividend per share proposal increased from CHF6.40 for FY2020 to CHF7.00 for FY2021

Solid 2020 figures impacted by one-off effects

• Net profit attributable to shareholders declined by 38% to CHF434m for 2020 • COVID-19 net claims were CHF72m and a negative tax swing in 2020 due to a positive one-off tax effect of CHF149m for 2019 • The dividend per share proposal is unchanged CHF6.40 for FY2020

Disappointing H1 20 results burdened by one-offs

• Net profit attributable to shareholders declined by 55% to CHF178m for H1 20 due to COVID-19 net claims of CHF63m and a negative tax swing of CHF129m due to a positive one-off tax effect in H1 19 • Net premiums earned were down by 13% to CHF3.9bn for H1 20 compared to H1 19 due to a positive one-off effect in 2019

Good 2019 figures, strong profit growth due to one-off tax effect

• Net profit attributable to shareholders rose by 32% to CHF690m due to a positive one-off tax effect • The switch from tax expenses to a tax credit (income) in 2019 is attributable to the effects of Switzerland’s cantonal tax reform • Total equity and investment gains benefited from the favourable financial markets in 2019 • The dividend per share proposal increased from to CHF6.00 for FY2018 to CHF6.40 for FY2019

Good figures for H1 19, net profit pushed by positive tax one-off

• Net profit attributable to shareholders rose by 46% to CHF395m due to a positive one-off tax effect • The switch from tax expenses to a tax credit (income) in H1 19 is attributable to the effects of Switzerland’s cantonal tax reform • Total equity and investment gains benefited from the favourable financial markets in H1 19

Mixed FY2018 figures, higher dividend proposal

Preliminary net attributable profit decreased by 5% to CHF523m for FY2018 compared to FY2017. Net premiums earned were flat at CHF6.53bn for 2018 compared to 2017. Investment income declined by 1% to CHF1.38bn for 2018 compared to 2017. Realised gains and losses on investments dropped from a profit of CHF1.12bn for 2017 to a loss of CHF992m for 2018, of which a loss CHF1.09m for 2018 belonged to “Realised gains and losses on investments at the risk of life insurance policyholders and third parti

Mixed H1 figures, again additional reserve needs in Germany

Pre-tax profit decreased by 11% to CHF341m for H1 18 compared to the same period last year. H1 18 was burdened by the addition of CHF46.8m to reserves for a run-off portfolio in the German non-life business. This reduced profit by a net CHF32.4m in H1 18. Net premiums earned were down by 3% to CHF3.77bn. Investment income rose by 2% to CHF732m for H1 18 compared to H1 17. “Realised gains and losses on investments at the risk of life insurance policyholders and third parties” switched from a prof

Solid FY2017 figures, higher dividend proposal

Net attributable profit increased by 2.5% to CHF548m for FY2017 compared to FY2016. Net premiums earned were slightly up by 0.5% to CHF6.54bn for FY2017 compared to FY2016. The investment income declined by 6% to CHF1.39bn for 2017. Realised gains on investments rose from CHF667m for FY2016 to CHF1.12bn for FY2017. The investment yield was unchanged at 2.9% in 2017. Overall income was up by 6% to CHF9.4bn in 2017 compared to 2016. Insurance claims rose by 1% to CHF5.7bn in the same period. Total

Higher H1 profit due to less reserve needs

Pre-tax profit increased by 41% to CHF382m for H1 17 compared to the same period last year. H1 16 was burdened by the addition of CHF54.8m to reserves in the German non-life business. Net premiums earned were slightly up by 0.4% to CHF3.9bn. Investment income declined by 8% to CHF716m for H1 17 compared to H1 16. Realised gains and losses on investments rose from CHF93m for H1 16 to CHF433m for H1 17 (CHF366m for H1 15). Overall income increased by 7.5% to CHF5.2bn for H1 17 compared to H1 16. I

Net profit above expectations, new share buy-back programme over three years

Net attributable profit increased by 4% to CHF535m for FY2016 compared to FY2015. Net premiums earned were down by 3% to CHF6.5bn for FY2016 compared to FY2015. The investment income declined by 3% to CHF1.48bn for 2016. Realised gains on investments rose from CHF386m for FY2015 to CHF667m for FY2016. The investment yield was 2.9% in 2016 compared to 3.0% in 2015. Overall income was flat at CHF8.9bn in 2016 compared to 2015. Insurance claims rose by 6% to CHF5.7bn in the same period. Total expen

Weaker H1 profit due to additional reserve needs

Pre-tax profit decreased by 17% to CHF289.5m for H1 16 compared to the same period last year. The decrease was mainly due to the addition of CHF54.8m to reserves in the German non-life business, which reduced the net profit for the period by CHF37.9m. Net premiums earned were down by 5% to CHF3.9bn. Investment income was flat at CHF780m for H1 16 compared to H1 15. Realised gains and losses on investments decreased from CHF366m for H1 15 to CHF93m for H1 16. Overall income declined by 10% to CHF

Solid 2015 figures without disposal gains

Net attributable profit decreased by 28% to CHF512m for FY2015 compared to FY2014. 2014 was boosted by disposal gains of around CHF160m due to the sale of the shareholdings in Nationale Suisse and Helvetia and the sale of Basler Austria. Net premiums earned were down by 5% to CHF6.7bn for FY2015 compared to FY2014. The investment result declined by 24% to CHF1.84bn for 2015. The investment yield was down from 4.1% in 2014 to 3.1% in 2015. Overall income decreased by 14% to CHF8.9bn in 2015 compa

Very limited Q3 15 information released

Total volume of business rose by 1.4% to CHF7.05bn for 9M 15 compared to the same period last year in local currency and on a like-for-like basis. The Group Solvency I ratio was 341% at the end of September 2015 compared to 354% at the end of 2014. No other hard figures were released. Baloise said that it is confident of achieving a combined ratio at the lower end of its own target range of 93-96% in 2015.

Facilities by ADF - FY23A Results – Trailer-blazing in pursuit of excellence

ADF released FY23A results in-line with our forecasts and the February trading update. As previously highlighted, H1/23A saw record profits whilst H2/23A was disrupted by the now-resolved strike action. The business is ramping back up at the start of FY24E and returning to normal utilisation in H2/24E. Our newly released FY25E forecasts show that with a full year of business as usual, revenues increase c.20% to £56.8m and Adj PAT jumps c.50% to £7.5m. FCF similarly increases to £7.5m, putting th

Morning Note – 22 April 2024

Benefits of scale set to materialise

Bluefield Solar Income Fund – Fundamentals shine despite discount

The manger comments that, in common with the other trusts in the renewable energy sector, the last six months have continued what has been a challenging period for the Bluefield Solar Income Fund (BSIF). It adds that the trust’s ongoing fundamental performance has failed to reverse a steady slide in its share price which began back in May 2023. Despite this, it says the company has continued to deliver solid NAV growth and market-leading shareholder distributions thanks to a range of contractual

Henderson Far East Income - Repositioning to raise total returns

Henderson Far East Income (HFEL) has consistently delivered on its objective to provide a rising dividend. However, like many investors, HFEL’s managers overestimated the potential for a post-pandemic rebound in China. The trust’s resultant overweight to Chinese consumer and other cyclicals led to a fall in portfolio revenues and underperformance in the financial year ended 31 August 2023 (FY23). With a view to improving future returns, HFEL’s board has since indicated an increased willingness t

LSL Property Services (LSL LN) - Transformation & market recovery

2023 results are, as indicated in its February pre-close update, “slightly ahead of market expectations”. Current trading continues to improve, with 1Q24 underlying operating profit up yoy, “reflecting the benefits of the Group’s transformation programme completed in 2023 as well as improving market conditions.” With net cash of £35m at end 2023, the Board approved 7.4p final DPS and £7m buy back.

Frenkel Topping - Resilient with strong growth potential

FY 2023 was a challenging year for Frenkel with higher interest rates encouraging clients to place money into lower margin money market funds. Despite this, sales grew +32% (supported by recurring revenue +9% and +51% in non-recurring), EBIT margins remained strong at 22% and adj. EPS grew +17% (taking into account the higher number of shares). FY 2024 has seen a solid start to transactional business and there is a strong pipeline of new FUM opportunities both of which support further growth. Wi

Baillie Gifford Shin Nippon

BGS’s portfolio is seeing strong sales growth but looks cheaper and cheaper…

S&U - PBT ahead, encouraging volume trends

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as addi

LIBERUM: PensionBee: Strong start to the new financial year

Foresight Solar Fund - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web

LIBERUM: NewRiver: Q4 trading update: Continued operational momentum

International Public Partnerships - Consistently and responsibly delivering

International Public Partnerships’ (INPP’s) FY23 results show that it continues to deliver consistent and predictable returns for investors, while delivering environmental and social benefits for the individuals and communities that are served by its assets. Despite this strong performance and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on INPP’s share price, in common with the wider sector. Regardless, attractive returns are available from th

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

Morning Note – 26 April 2024