Barclays sees tailwinds for insurance brokers, raises PTs

Willis Towers Watson

20/11/2024 17:03

** Brokerage Barclays hikes PTs on insurance brokerage firms
citing latest industry pricing data 
    ** Barclays sees pricing to be in line with recent industry
trends
        ** While prices decelerate for the property line, the
brokerage observes a strong "accelerating increase" in casualty
lines' prices 
  
        ** "Combined with the continuing increase in demand for
coverage for these (casualty) types of risks, we see an
environment in which casualty pricing can continue to
accelerate" - brokerage 
  
    ** Brokerage feels the potential of higher-for-longer
inflation environment as a result of the U.S. elections might
aid insurance brokers sustain above average organic growth,
going into 2025 and 'possibly' into 2026 
    ** Barclays' estimates suggest further upbeat view, mostly
in the reinsurance and brokerage space 

The price target changes: 
    
 Insurance                  New PT  Old PT
   Brokers                          
 Aon                        $440    $394
 Arthur J.                  $308    $300
   Gallagher                        
 Brown &                    $119    $108
   Brown                            
 Marsh &                    $246    $236
   McLennan                         
 Ryan                       $88     $76
   Specialty Holdings               
 Willis Tower               $302    $278
   Watson                           
 

 (Reporting by Pritam Biswas in Bengaluru)
 ((Pritam.Biswas@thomsonreuters.com))