THG - Assurant Hanover get new Buy ratings at BofA among new insurance coverage

BofA Securities analyst Grace Carter resumes or initiates coverage of four insurers, assigning Buy ratings to Assurant (AIZ) and the Hanover (THG).Sees THG's ROE continuing to outperform that of the industry and believes the stock merits a premium valuation. "Current compression presents a buying opportunity. Initiate Buy."Sets THG price target at $166; the Buy rating contrasts with Quant rating of Neutral.Also sees recent compression on AIZ's P/E as a buying opportunity as Carter expects earning mix increasingly oriented towards higher-growth businesses with lower capital requirements leading to multiple expansion over time.Assigns $207 price target; Buy rating is in start contrast with Bearish Quant rating.Reinstates coverage of Selective Insurance Group (SIGI) at Neutral with an $83 price target. Sees its ROE outperformance vs. the industry and ability to weather challenges in commercial loss cost trends already reflected in its year-ahead P/E multiple currently trading at 115% that of the P&C group.Agrees

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Assurant, Hanover get new Buy ratings at BofA among new insurance coverage