STOCKS NEWS EUROPE-CNP Assurances hit by SocGen cut

Shares in France's CNP Assurances (CNPP.PA) drop 3 percent, falling behind the DJ Stoxx insurance index .SXIP, which is down 0.4 percent, after Societe Generale cuts its rating on the stock to "hold" from "buy", saying the stock's "defensive status (is) fully priced in".

"Despite its pure life profile CNP's business model has been perceived as very defensive through the financial maelstrom given the shelter provided by its cautious asset/liability management approach, coupled to a low risk underwriting profile with exposure mainly to traditional savings products generating low but resilient margins throughout the cycle," SocGen analysts write in a note.

"But the benefits of its defensive business model now look fully priced in to us with the stock on circa 8.8 times 2010 earnings per share forecast versus 7.7 times for the life sector. We see no reason for the stock to continue to outperform, and are now taking a neutral stance," they write.

Reuters Messaging rm://blaise.robinson.reuters.com@reuters.net