Speed dating insurers: all I want is dividend growth!
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
SPEED DATING INSURERS: ALL I WANT IS DIVIDEND GROWTH!
24 insurers, 53 investors and 40 institutions attended Berenberg's insurance "speed dating" programme this month and turns out the most discussed topic was shareholder payouts.
And based on that, the German bank sounded upbeat about the sector's prospects. Europe's STOXX Insurers .SXIP is broadly flat so far in 2024 after rising almost 9% over the past year.
"The main focus of the conversations was each company’s determination to pay a progressive dividend, and for some insurers this means not just flat or up, but a growing dividend year on year. We believe this means that the sector will continue to deliver attractive returns," say Berenberg analysts.
In more detail, Berenberg hosted six composite insurers (Talanx, Generali, Ageas, Unipol, VIG and Uniqa) and the message there was that despite risks relating to natural catastrophes and real estate, the outlook for dividends is positive.
"Most of the companies said they are looking to increase their dividends, in many cases toward the top end of the target growth range set out in their strategic plans," they add.
Positive words also for UK life insurers.
"All reiterated their strong solvency positions and investment portfolios which are performing well, despite investors' repeated concerns about credit risk which have not materialised in credit defaults. Capital returns to shareholders remain a focus of Aviva, Phoenix and M&G, and we view the high dividend yields across the sector as extremely attractive."
(Danilo Masoni)
*****
FOR THURSDAY'S OTHER LIVE MARKETS POSTS:
STOXX HIGHER AS LUXURY AND BETTING NAMES PROVIDE LIFT CLICK HERE
CENTRAL BANKS PLAY PATIENCE CLICK HERE
EUROPEAN FUTURES SIGNAL RISES AS EARNINGS ROLL IN CLICK HERE
Microsoft overtakes Apple as world's most valuable company https://tmsnrt.rs/48Wevvx
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
