DB says European insurers are attractive with potential for growth, capital returns

ASR Nederland NV

06/06/2025 09:41

** Deutsche Bank maintains a positive view on "attractive" European insurance sector

** Insurers have outperformed the broader market by 12% YTD, helped by renewed interest in European financials, strong fundamentals and capital management frameworks, the broker says

** DB highlights Dutch insurers' attractive valuations relative to the sector, and foresees medium-term top-line growth for UK life insurance providers

** It prefers NN Group NN.AS, Phoenix PHNX.L and Prudential PRU.L based on their valuation differentials, increased management guidance and share buyback potential, upgrading all three to "buy"

** It cuts Allianz ALVG.DE, ASR Nederland ASRNL.AS and Legal & General LGEN.L to "hold" saying that despite them being high-quality franchises, there is better value elsewhere in the sector

** Composite insurers' high single-digit EPS growth and 75% payout ratios highlight their quality, while pre-2025 elevated pricing continues to help reinsurers outpace recent loss trends, DB says

 (Reporting by Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))