Live Markets: Insurers: Not cheap, but still in play
04/09/2025 12:01
STOXX 600 up 0.5% Airlines drop on Jet2 warning Caution before Friday's US jobs data Nasdaq futures inch higher Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com INSURERS: NOT CHEAP, BUT STILL IN PLAY European insurers have been standout performers over the past few years. Even after a 17% surge so far in 2025 and with the sector no longer cheap, Berenberg says there's still value to be found. At 11.5 times forward earnings - one standard deviation above the historical mean - the German bank notes that the sector is trading at "levels some investors perceive as high". Yet sustained, albeit moderating, earnings growth, strong solvency levels, and attractive capital distributions make Berenberg analysts upbeat about what lies ahead. "We believe that the sector can continue to push the valuation boundaries," they say. "Excess capital remains largely untapped, providing further valuation support". Berenberg sees scope for 6–9% annual EPS growth over the next two years, driven by a mix of factors including GDP growth and consolidation-driven margin gains. That could support a total dividend and buyback yield of around 7% over the same period, with solvency ratios averaging a robust 222%. The bank's top picks include ASR ASRNL.AS, Phoenix PHNX.L, SCOR SCOR.PA, Swiss Re SRENH.S, Beazley BEZG.L, Sabre SBRE.L, AXA AXAF.PA and Allianz ALVG.DE. (Danilo Masoni) ***** EARLIER ON LIVE MARKETS: TARIFF HIT TO ASIAN PMIS MUTED FOR NOW, SAY HSBC CLICK HERE STOXX 600 EDGES UP, SANOFI AND JET2 WEIGH CLICK HERE BEFORE THE BELL: EUROPEAN FUTURES STEADY CLICK HERE RELIEF AS JAPAN DEBT AUCTION SAILS THROUGH CLICK HERE