STOCKS NEWS EUROPE-Hiscox, Beazley gain after updates
Shares in London-listed insurers Hiscox (HSX.L) and Beazley (BEZG.L) gain 2.8 percent and 1.6 percent, respectively, after the firms issue trading updates, with RBS repeating its "buy" ratings on both stocks.
Bermuda-based Hiscox and Lloyd's of London's Beazley both post strong rises in premium income for the first nine months of the year and say they have seen stable or increased rates over the period. [ID:nL9362323]
"Hiscox's IMS (interim management statement) should boost the shares and underpin our expectation of a very strong return in FY09, followed by a lower, but still good return in 2010," RBS says in a note.
The broker says the outlook may be for flat rates at best for next year, but the group's specialist focus should enable it to find profitable growth.
On Beazley, RBS says: "The IMS should underpin the shares and indicates Beazley is on track to deliver good FY09 results, but the comments indicate the trading backdrop is still mixed."
"Combined with the drag from the 1H09 equity raising, we do not expect the shares to do much in the short term," the broker says.
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