Hannover Re shares rise after UBS upgrades to 'neutral'

Hannover Rueck SE

03/06/2024 10:58

** Shares in Hannover Re  HNRGn.DE  rise around 2% after UBS
upgrades the German reinsurer to "neutral" from "sell" saying it
is well placed to perform into an active catastrophe season
    ** The active wind season in the Gulf of Mexico is expected
to be above the historical average, which is a positive catalyst
for reinsurers as it would extend the hard market conditions -
UBS
    ** "We think Hannover Re is well placed in this regard," it
adds
    ** The broker also says that its liability reserve analysis
suggests Hannover Re's already restored reserve resilience could
be boosted an additional about 10% in 2024
    ** It also expects a potential positive catalyst from S&P
model changes that could hint to more favourable capital
distribution
    ** UBS adds that Hannover Re appears fairly valued with the
consensus capturing the earnings growth potential, hiking its PT
by 7% to 234 euros
    ** Out of 17 analysts covering the stock, six rate it 
"strong buy" or "buy", seven rate it "hold" and four rates it
"sell"
  

 (Reporting by Paolo Laudani)
 ((Paolo.Laudani@thomsonreuters.com))