Taaleri: Fair value changes burdened Q1 although to a lesser extent than expected - Nordea

Taaleri reported Q1 EBIT of EUR -0.6m, coming clearly above Refinitiv consensus at EUR -4.3m. Total income from segment reporting was EUR 7.2m above Nordea estimate of EUR 0m. Recurring revenues were EUR 9.3m in Q1, missing our estimate by 6%. Fair value changes of investments were EUR -2.8m in Q1, while we had anticipated EUR -9.8m. Hence, when adjusting for deviation in fair value changes, underlying operations were well in line with our estimates. Private asset management EBIT beat our estimates slightly due to EUR 0.5m carry booking, while we did not anticipate any. Garantia’s loan losses continued at a low level while net premiums increased by 3% y/y, while we had anticipated 25% growth. Combined ratio was 31.3% in Q1 and beat our estimate of 34.1%. Private asset management AuM was up 1.5% q/q to EUR 2.3bn (EUR 1.7bn a year ago). On initial take, we expect consensus to make flattish underlying estimate revision as development appears to be well in line with expectations, while EBIT beat is driven by better-than-anticipated fair value changes and small carry booking from Daycare Properties fund. We have a fair value range of EUR 11.4-13.3 per Taaleri share.