ASR Nederland NV had the largest quarterly percentage increase in market capitalization among the top 20 European insurers in the fourth quarter of 2023, according to an S&P Global Market Intelligence analysis.
The Dutch insurer's market cap grew 20.2% to €8.94 billion in the quarter, raising it one place in the overall market cap ranking.
ASR's share price got a boost at the end of November after two pieces of good news. The company announced Nov. 29, 2023, that it had settled lawsuits filed by consumer groups complaining about the transparency of unit-linked products sold by ASR and Aegon Nederland NV, which ASR bought from Aegon Ltd. in 2023. The settlement includes an agreement that no further lawsuits will be filed.
The following day ASR raised its target for annual cost savings from its acquisition of Aegon Nederland to €215 million from €185 million. ASR's share price increased to €42.27 on Nov. 30, 2023, from €37.42 the previous day. ASR closed the quarter up 22.21% at €42.70.
Gjensidige Forsikring ASA came a close second with a market cap increase of 19%, which thrust the Norwegian insurer into the top 20 from 23rd place. Gjensidige's share price rose 20.81% over the quarter. Investors appeared to brush off that the insurer's third-quarter 2023 profit after tax of 827 million Norwegian kroner missed analysts' expectations. Gjensidige's share price increased to 165.50 kroner on Oct. 20, 2023, the day the earnings were announced, from 158.10 kroner the day before. Profit was hit by severe weather claims of 559.2 million kroner and one-off costs of 409 million kroner.
"Fortunately, most of these issues are one-offs," Jefferies analysts said in a research note at the time, noting that the underlying expense ratio of 12.6% and solvency ratio of 185% were better than forecast.
ASR and Gjensidige's increases came in a positive quarter for European insurers' market capitalization. Capitalization increased quarter on quarter at 17 of the top 20 insurers, and there was double-digit percentage growth in market capitalization at eight of these companies. European insurers' share prices generally increased, with the Stoxx Europe 600 Insurance index up 6% over the quarter. Insurers' share price growth outpaced the overall Stoxx Europe 600 index for much of the quarter, but a sharp drop on Dec. 14, 2023, for insurers meant that the general index finished the quarter ahead with a rise of 6.4%.
While Gjensidige joined the top 20 in the fourth quarter, Aegon fell out of the list, dropping to 21st place from 16th after a 2.60% fall in market capitalization. Aegon is in the middle of a €1.5 billion share buyback program, which it launched in July. Aegon's outstanding shares fell to 1.56 billion from 1.84 billion during the quarter. Its stock price was up 16.08% over the quarter.
Other than these moves, the composition of the top 20 was largely unchanged, and the top four maintained their positions. The biggest faller within the top 20 was Finnish insurance group Sampo Oyj, with a market capitalization decline of 3.34%. However the company retained its ninth position in the table.
As of Jan. 8, US$1 was equivalent to 10.36 Norwegian kroner.