UBS recommends 'sell' for Spanish insurer Mapfre, 'buy' for peer Linea Directa
20/01/2026 13:46
** UBS initiates coverage of Spanish insurers Mapfre MAP.MC and Linea Directa LDA.MC, rating the former as "sell" on peak valuation and the latter as "buy" on its expected return to growth and improved profitability ** It says the Mapfre stock is expensive, while flagging headwinds from lower prices and normalising profits in its large reinsurance segment and in the Brazilian market ** A rise in Spanish motor insurance pricing offers little benefit for Mapfre, as the unit contributes just 9% of its gross written premiums and has repeatedly underperformed, the brokerage says ** Conversely, Linea Directa's growth and margin recovery are not yet priced in, UBS says, expecting it to outperform in both profitability and growth ** It predicts a re-rating for Linea Directa as motor insurance cost improves ** UBS sets price target of 3.85 euros for Mapfre and 1.35 euros for Linea Directa, against respective closing prices of 4.28 euros and 1.12 euros on Monday ** Shares of Mapfre fall 7%, on track for their worst day since March 2020 and the worst performers on Europe's benchmark STOXX 600 index .STOXX (Reporting by Marta Serafinko and Tiago Brandao) ((gdansk.newsroom@thomsonreuters.com ; +48 58 769 66 00;))