UPDATE - Barclays Initiates Coverage on Insurance Stocks (AFL) (MET) (PRU) (LNC) (HIG)
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Price: $94.34 +0.94%
Rating Summary:
18 Buy, 9 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Barclays Initiates Coverage on Insurance Stocks (AFL) (MET) (PRU) (LNC) (HIG)
Barclays analyst said, "The U.S. life insurance sector's fundamentals should improve and valuations are attractive. We anticipate a recovery in life insurers' earnings and return on equity along with modest valuation multiple expansion which should lead to increased stock prices. We initiate coverage of MetLife (NYSE: MET), Prudential (NYSE: PRU), AFLAC (NYSE: AFL), and AMERIPRISE (NYSE: AMP) with a Overweight rating, and Hartford (NYSE: HIG), UNUM (NYSE: UNM), Lincoln National (NYSE: LNC), and Principal Financial (NYSE: PFG) with a Equal Weight rating."
"Attractive Valuations - Valuations of life insurance stocks are currently below
historical average levels based on forward P/E as well as price-to-book ex AOCI, and also appear attractively valued compared to the P&C insurance stocks. We believe the life insurance sector could be revalued upward as these companies generate increasingly consistent results. Life insurer's ROEs should improve, but remain below peak historical levels."
"Top Picks Are MET and AFL. MET has a diversified, international platform,
enhanced by the Alico acquisition. We expect MET's operating ROE to improve to 12% driven by increased revenues, accretion from Alico, and share buybacks. We believe MET's franchise will remain strong with its new CEO. MET currently trades at an attractive valuation of 7.5x our 2012 EPS estimate of $5.85 and 1.0x book value ex AOCI."
Barclays analyst said, "The U.S. life insurance sector's fundamentals should improve and valuations are attractive. We anticipate a recovery in life insurers' earnings and return on equity along with modest valuation multiple expansion which should lead to increased stock prices. We initiate coverage of MetLife (NYSE: MET), Prudential (NYSE: PRU), AFLAC (NYSE: AFL), and AMERIPRISE (NYSE: AMP) with a Overweight rating, and Hartford (NYSE: HIG), UNUM (NYSE: UNM), Lincoln National (NYSE: LNC), and Principal Financial (NYSE: PFG) with a Equal Weight rating."
"Attractive Valuations - Valuations of life insurance stocks are currently below
historical average levels based on forward P/E as well as price-to-book ex AOCI, and also appear attractively valued compared to the P&C insurance stocks. We believe the life insurance sector could be revalued upward as these companies generate increasingly consistent results. Life insurer's ROEs should improve, but remain below peak historical levels."
"Top Picks Are MET and AFL. MET has a diversified, international platform,
enhanced by the Alico acquisition. We expect MET's operating ROE to improve to 12% driven by increased revenues, accretion from Alico, and share buybacks. We believe MET's franchise will remain strong with its new CEO. MET currently trades at an attractive valuation of 7.5x our 2012 EPS estimate of $5.85 and 1.0x book value ex AOCI."
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