Taaleri: Q2 EBIT above expectations with solid underlying profitability - Nordea

Taaleri reported Q2 EBIT of EUR 4.4m, clearly above LSEG Data & Analytics consensus at EUR 3.5m. Comparing to our estimates, we believe the beat mainly stems from better-than-expected investment operations income in Garantia (EUR +1.4m, our estimate: EUR +0.5m). Based on segment reporting, total income was EUR 11.9m, 7% above our estimate. Recurring revenues were EUR 10.1m in Q2, in line with our estimate. Private asset management recurring revenues grew 7% y/y. The company did not book any carried interest in Q2, in line with our expectations. On a positive note, Private asset management cost base appears to be slightly lower than we had estimate, due to lower personnel costs in Renewable energy. Garantia’s Q2 combined ratio was 26.5% (21.5% in Q1 with negative claims ratio), better than our estimate at 30.2%. Solvency at 271%. Private asset management AuM was flat q/q at EUR 2.6b. Taaleri continues fundraising for SolarWind III, with multiple investors conducting due diligence on the fund, with committed capital expected to increase towards the end of the year. The bioindustry business continued preparations on a new venture capital fund, with fundraising starting in the early Autumn. Taaleri is also aiming to develop and launch new real estate products during this year and is strengthening the real estate team through new recruitments. Initially, we believe consensus revisions will be neutral to slightly positive.