Goldman Sachs upgrades UK's Admiral, Hiscox on retail property and casualty insurance upside

Admiral

02/07/2025 09:32

** Goldman Sachs upgrades Admiral ADML.L to "buy" from "sell", says co well positioned with low USD FX exposure and a retail property and casualty focus; poised to benefit from rising UK motor prices, market consolidation, and growing home insurance demand

** Brokerage likes Hiscox's HSX.L business mix, which is almost 50% retail and says stock offers the highest earnings per share and top-line growth vs London market peers; upgrades stock to "buy" from "neutral"

** Goldman, however highlights rising competition in the UK bulk annuities market as a key risk for Legal & General LGEN.L; downgrades stock to "neutral" from "buy"

** Shares of ADML and HSX up ~2% and 0.5%, respectively, while LGEN is down ~1%

** "Sector fundamentals have generally been resilient, but given market trends our top-down preference remains for retail P&C (Property & Casualty) over commercial P&C, or P&C Re(Reinsurance)", brokerage adds

 (Reporting by Joel Jose in Bengaluru)

 ((joeljose@thomsonreuters.com;))