JPM prefers ASR, Aegon among 'highly inexpensive' Benelux insurers

NN

12/01/2024 08:56

** J.P.Morgan says that while Benelux-listed insurers all
look cheap, it prefers stocks with higher potential for capital
returns and positive earnings surprises 
    ** The sub-sector is set to outperform the market in an
environment of declining bond yields, thanks to strong capital
returns and low asset risks - JPM
    ** The brokerage reinstates coverage of Dutch-listed ASR
Nederland  ASRNL.AS  at "overweight", expecting improved cash
flow to support share buybacks from 2024, while improving
solvency II position should unlock capital returns or M&A
    ** It also reinstates Aegon  AEGN.AS  at "overweight"
rating, saying its U.S. restructuring could boost EPS growth and
cash flow above consensus
    ** JPM cuts NN Group  NN.AS  to "neutral" from "overweight",
despite labelling the stock the cheapest of the bunch, saying
the company offers limited earnings growth or potential for
positive surprises
    ** It downgrades Belgium's Ageas  AGES.BR  to "underweight"
from "neutral", citing its high exposure to Asia partnerships
with low cash flows, free capital generation yield "well below
Benelux peers", and restricted buyback potential 

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))