UBS Gets Bullish On Insurance Stocks

Banks have received a lot of love in recent months on the prospect of deregulation and rising interest rates, but the insurance industry also has a bright outlook at the moment.

The UBS analyst team recently took a deep dive into the U.S. insurance industry, checking stock valuation, free cash flow business mix and leverage in an effort to determine the top plays in the space.

Analyst John Nagel said there seems to be plenty of potential winners in the insurance business and very few losers.

“Those who know us will understand how uncommon this is, but we're struggling to find names we don't like,” Nagel said on Friday.

UBS has initiated coverage on the following 13 financial sector stocks:

Buy

  • Assurant, Inc. AIZ, Buy rating and $127 price target.
  • FGL Holdings FGL, Buy rating and $12 price target.
  • Voya Financial Inc VOYA, Buy rating and $65 price target.
  • Ameriprise Finacial, Inc. AMP, Buy rating and $217 price target.
  • Athene Holding Ltd ATH, Buy rating and $68 price target.
  • Prudential Financial Inc PRU, Buy rating and $140 price target.

Neutral

  • AFLAC Incorporated AFL, Neutral rating and $98 price target.
  • Reinsurance Group of America Inc RGA, Neutral rating and $168 price target.
  • Brighthouse Financial Inc BHF, Neutral rating and $58 price target.
  • Principal Financial Group Inc PFG, Neutral rating and $69 price target.
  • Lincoln National Corporation LNC, Neutral rating and $84 price target.
  • Unum Group UNM, Neutral rating and $57 price target.

Sell

  • American Equity Investment Life Holding AEL, Sell rating and $30 price target.
  • Torchmark Corporation TMK, Sell rating and $83 price target.

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