European Insurance: Citigroup sees "solace in stress"

Topdanmark A/S

30/03/2020 08:53

** Citigroup sees "solace in stress" for European insurers
    ** The broker says that a spike in dividend yields offers
investors another chance to raise exposure to a sector with
strong solvency, generally resilient cash flow and business
models successfully adapting to digitalisation and disruption
    ** "We see a significant disconnect between where corporate
spreads are now, where sovereign yields are likely to trend and
what is discounted in sector valuations," the broker adds
    ** It says that, after indiscriminate share price falls, it
turns more positive and makes multiple upgrades, noting that its
top three picks are Allianz  ALVG.DE , Munich Re  MUVGn.DE  and
Generali  GASI.MI 
    ** The broker raises Munich Re  MUVGn.DE , Legal & General
Group  LGEN.L  and ASR Nederland  ASRNL.AS  to "buy" from
"neutral"
    ** It also raises Admiral  ADML.L , Topdanmark  TOP.CO  and
Hannover Re  HNRGn.DE  to "neutral" from "sell"


 ((Linda.pasquini@tr.com))