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Taaleri: High unrealised changes in fair values burdened profitability while private asset management performance slightly above our estimates on underlying basis - Nordea

Taaleri reported Q2 EBIT of EUR 2.4m, coming clearly below Refinitiv consensus at EUR 5.0m. Based on segment reporting, Q2 total income was EUR 11.9m, 13% below Nordea estimate of EUR 13.6m. Recurring revenues were EUR 9.6m in Q2, missing our estimate by 4%. Fair value changes of investments were EUR -7.0m in Q2, while we had anticipated EUR -1.5m.

Investment operations income of EUR 2.3m came below our estimate of EUR 3.5m. Hence, when adjusting for deviation in investment operations, underlying operations EBIT came 30% below our estimate. Private asset management EBIT missed our estimates mainly due to higher costs that can be viewed as one-off in nature. Garantia’s loan losses continued at a low level (-0.2%) while net premiums decreased by 8% y/y, while we had anticipated 8% growth.

Combined ratio was 31.0% in Q2 and beat our estimate of 31.8%. Private asset management AuM was up 4.7% q/q to EUR 2.4bn (EUR 2.2bn in 2021). SolarWind III will be launched in Autumn, while Bio I is expected to start investments in Q3. On initial take, we expect consensus to make slightly negative underlying estimate revision. We have a fair value range of EUR 11.0-12.5 per Taaleri share.
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