CORRECTED - STOCKS NEWS EUROPE-Insurers influenced by Merrill changes

(Corrects to amend rating changes in second paragraph)

Shares in European insurers feature heavily on the risers and fallers lists as Banc of America-Merrill Lynch adjusts rating and targets in the sector.

In the UK, Standard Life (SL.L) gains 3.2 percent as Merrill upgrades its rating to "buy" from "neutral", while Legal & General (LGEN.L) adds 0.4 percent with the broker hiking its rating to "neutral" from "underperform".

Merrill also raises its target prices for Old Mutual (OML.L) and St James's Place, up 0.3 and 1.3 percent respectively, but cuts its target for Prudential (PRU.L), down 2 percent.

In Europe, Merrill raises Italy's Generali (GASI.MI), down 0.1 percent, to "neutral" from "underperform", but downgrades Swiss Life (SLHN.VX), off 2.5 percent, to "underperform" from "neutral".

The broker says, in a pan-European sector note, that its changes come after it refreshed earnings quality work from September last year to incorporate full year 2008 figures.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net