UPDATE 1-European insurance sector a buying opportunity - ING

(Recasts, adds details)

Nov 13 (Reuters) - ING said the European insurance sector offers a good buying opportunity as it is at a 20-year relative low and fears of equity gearing, corporate bond exposure and solvency are overdone.

"While caution is an admirable quality, we think it has gone too far," analyst Kevin Ryan said in a note to clients.

Non-life business remains profitable in a way that has not occurred in previous cycles, the analyst said, adding that he doesn't expect the profitability to collapse.

Ryan said his "buy" recommendations focus on companies with strong non-life businesses.

Unlike the banks, the insurance business model is not broken, he said.

The analyst maintained his "buy" rating on Zurich Financial Services (ZURN.VX) and Aviva (AV.L).

However, he cut Standard Life (SL.L) and Munich Re (MUVGn.DE) to "hold" from "buy."

Ryan said the downgrade of Standard Life reflected his conservative assumptions about the equity and bond markets and the impact these will have on the balance sheet.

On Munich Re, he said in the absence of an about-turn in investment markets, the company's fundamental valuation will remain under pressure and at current levels, the stock looks fairly valued.

The analyst also changed price targets on the following stocks: Company Price target

Current Previous Allianz SE (ALVG.DE) 123 euros 167 euros Aviva (AV.L) 499 pence 887 pence AXA SA (AXAF.PA) 20.5 euros 24.0 euros Generali (GASI.MI) 20.6 euros 29.3 euros Irish Life & Permanent (IPM.I) 6.49 euros 11.44 euros Legal and General (LGEN.L) 77 pence 145 pence Munich Re (MUVGn.DE) 96.91 euros 120.61 euros Prudential Plc (PRU.L) 561 pence 800 pence RSA Insurance (RSA.L) 131 pence 151 pence Standard Life (SL.L) 214 pence 286 pence Swiss Re (RUKN.VX) 59.56 SFr* 71.46 SFr * Zurich Financial Services (ZURN.VX) 323 SFr* 395 SFr * * Swiss francs (Reporting by Adheesha Sarkar in Bangalore; Editing by Vinu Pilakkott)