EQH - Citigroup names MetLife Voya among top picks in new coverage of insurers

In preferring life insurers over property & casualty (P&C) underwriters, Citigroup analyst Michael Ward is adopting a view contrary to the market as he starts coverage of 14 insurance companies.  His top picks are MetLife (NYSE:MET), Voya Financial (NYSE:VOYA), and Equitable Holdings (EQH), all Buy-rated, in life insurance; and Allstate (ALL), and the Hartford Financial Services Group (HIG), also Buys, in P&C. Ward has Sell ratings on Principal Financial (PFG), Reinsurance Group of America (RGA), and Progressive (PGR). "We see the life sector as attractive given materially higher interest rates YTD and increasing visibility around COVID claims (for most)," Ward wrote in a note to clients. Regarding P&C insurers, "profitability relies heavily on pricing exceeding loss trend, the near-term outlook for which is currently more uncertain/volatile than typical," he said. The U.S. life insurers that Ward covers are trading at an almost 20% discount to regression-implied price/earnings on current 10Y

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Citigroup names MetLife, Voya among top picks in new coverage of insurers