KBC says Benelux insurers are resilient to macro uncertainty

ASR Nederland NV

17/02/2025 10:14

** In a note on Benelux insurers, KBC says it expects global
macro uncertainty to be "well under control" for the sector
    ** "Focus very much still remains on the capital
distribution story," the broker says, adding it sees growth
carried by continued high capital ratios
    ** "Visibility on macro environment remains limited due to
geopolitical uncertainty" - KBC
    ** Asset valuations will be sensitive to geopolitical risks,
but EU commission and EIOPA measures will limit capital ratios'
sensitivity to equity market volatility, it says
    ** "Sensitivity to property price downward shocks is more
significant for our insurers in coverage, except for Aegon
 AEGN.AS ," it adds
    ** KBC expects P&C claim levels to stabilize going forward
despite rising frequency and intensity of natural catastrophes
    ** It also expects long term interest rates to remain stable
through 2025
    ** It downgrades Ageas  AGES.BR  to "accumulate" from "buy"
citing the stock's strong recent performance
    ** It prefers NN Group  NN.AS , which it says provides
largest upside among Benelux insurers 

(Reporting by Dimitri Rhodes)
((mailto:Dimitri.rhodes@thomsonreuters.com))