British insurer Hiscox's shares rise about 4 percent after brokerage
Nomura upgrades the stock by two notches to "buy" as it expects European
insurers to see strong share price performances ahead of earnings.
"We expect strong results from all companies (European insurers), and
despite the headwinds from lower rates in the key reinsurance lines, expect
companies to give an optimistic outlook on some of their differentiated business
lines," Nomura International analyst Fahad Changazi writes in a note.
Changazi expects the company to declare a special dividend of 25 pence and
raises his price target on the stock to 568 pence from 555 pence.
Shares in Hiscox, which provides insurance to cover kidnappings to fine art,
vintage cars and other assets of wealthy individuals and families, were trading
at 519 pence at 1048 GMT. The stock is one of the top FTSE-250 percentage
Nomura also cuts its rating on property and casualty insurer Lancashire
Holdings Ltd to "reduce" from "neutral". The brokerage also raises its
price target on rival insurer Beazley to 292 pence from 225 pence.
Lancashire's stock was down 1.5 percent, whereas shares in Beazley
are largely unchanged at 1048 GMT.
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