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Gjensidige: High And Sustainable Dividend From The Very Profitable  Nordic Insurance Oligopoly

Published Thu, 16 May 2019 02:13:42 -0400 on Seeking Alpha

Background for analysis and conclusion:
Gjensidige's (OTC:GJNSF, OTCPK: GJNSY) main listing is in Oslo, Norway, with the ticker GJE. At the time of writing, the share price is 165 NOK. Throughout the article, I refer to the Norwegian listing as this is a highly liquid stock included in OBX, the main index that tracks the 25 most liquid stocks. Gjensidige is ninth in terms of market cap.
All numbers are in NOK unless otherwise stated. One USD equals 8.8 NOK.
My goal is compounding, and thus, my ideal investment horizon is at least a decade, preferably an investment that I can just hold and never sell, and the article is based upon that. Most investors are bad at selling, and this applies to me as well. I prefer companies that pay a growing dividend, and I stick to investments in beer-drinking countries.
The aim of this article is to present this rather unknown and unpronounceable company (at least outside the Nordic region) to other investors.
Summary
The Nordic region has since 1965 produced better stock market returns than the US. Being export driven, the region has developed a very competitive economy, despite a high cost base. Furthermore, investments in the Nordics add diversification to your portfolio, and Gjensidige is in addition a recession proof company.
The three biggest insurers dominate the market like an oligopoly. One of these is Gjensidige, the market leader in Norway. The cost and loss ratios are low, much lower than in Europe, and customer... Read more