Citi more cautious on Western European insurers amid 'liquidity drain game'

Tryg A/S

13/07/2022 14:05

** Citi takes a more cautious stance on the Western European
insurers as liquidity drains from the system in light of
monetary tightening and elevated recession risk
    ** The brokerage is now "significantly underweight" on the
Nordics and cuts Sampo  SAMPO.HE  and Gjensidige  GJFG.OL  to
"sell" from "neutral", while cuts  TRYG.CO  to "neutral" from
"buy" amid a reduction in relative yield attraction in general
across this market
    ** It is now "underweight" on the UK insurers and cuts Aviva
 AV.L  and Direct Line  DLGD.L  to "neutral" from "buy", citing
a dislocated motor market and as "rate increases in excess of
loss cost trends are proving elusive"
    ** Amid increased vulnerability to "deteriorating economic
Eurozone data", Citi downgrades Allianz  ALVG.DE  to "neutral"
from "buy"
    ** The brokerage takes a more positive stance on the
reinsurers and upgrades Hannover Re  HNRGn.DE  to "buy" from
"neutral", pointing to an upside risk-reward balance

     


 (Reporting by Jacob Rasmussen)
 ((jacob.rasmussen@thomsonreuters.com))