Live Markets: Speed dating insurers: all I want is dividend growth!
18/01/2024 11:13
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SPEED DATING INSURERS: ALL I WANT IS DIVIDEND GROWTH!
24 insurers, 53 investors and 40 institutions attended Berenberg's insurance "speed dating"
programme this month and turns out the most discussed topic was shareholder payouts.
And based on that, the German bank sounded upbeat about the sector's prospects. Europe's
STOXX Insurers .SXIP is broadly flat so far in 2024 after rising almost 9% over the past year.
"The main focus of the conversations was each company’s determination to pay a progressive
dividend, and for some insurers this means not just flat or up, but a growing dividend year on
year. We believe this means that the sector will continue to deliver attractive returns," say
Berenberg analysts.
In more detail, Berenberg hosted six composite insurers (Talanx, Generali, Ageas, Unipol,
VIG and Uniqa) and the message there was that despite risks relating to natural catastrophes and
real estate, the outlook for dividends is positive.
"Most of the companies said they are looking to increase their dividends, in many cases
toward the top end of the target growth range set out in their strategic plans," they add.
Positive words also for UK life insurers.
"All reiterated their strong solvency positions and investment portfolios which are
performing well, despite investors' repeated concerns about credit risk which have not
materialised in credit defaults. Capital returns to shareholders remain a focus of Aviva,
Phoenix and M&G, and we view the high dividend yields across the sector as extremely
attractive."
(Danilo Masoni)
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FOR THURSDAY'S OTHER LIVE MARKETS POSTS:
STOXX HIGHER AS LUXURY AND BETTING NAMES PROVIDE LIFT CLICK HERE
CENTRAL BANKS PLAY PATIENCE CLICK HERE
EUROPEAN FUTURES SIGNAL RISES AS EARNINGS ROLL IN CLICK HERE
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