JPM says strong non-life businesses justify Swiss insurers' premium valuations

Swiss Life Holding AG

25/09/2024 10:53

** J.P.Morgan says Swiss insurers' valuation premiums vs
European peers are justified, as their high-quality non-life and
fee-based products have ensured strong margins, attractive cash
flow and growth over the past decade
    ** That has offset slower growth in their life insurance
businesses, typically a low-growth segment in Switzerland, it
says
    ** "We view these non-life and fee-based businesses as
comparable to highly rated Nordic P&C insurers and successful
wealth and nontraditional asset managers," JPM says
    ** It initiates Helvetia  HELN.S  at "overweight" and
Baloise  BALN.S  at "underweight", saying the former has greater
P&C margin upside potential vs consensus in the next 2-3 year
    ** "We believe Helvetia's P&C franchise is just as strong as
Baloise's, but at a less expensive valuation," it adds
    ** It reinstates Swiss Life  SLHN.S  at "neutral" saying
there is little scope for a positive earnings surprise

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com;))