Aviva PLC (LSE:AV.) remains Deutsche Bank’s top UK life insurance pick due to the combination of value, a fundamental earnings story, and a continued repositioning towards a more focused and disciplined company.
Overall, the sector remains cheap, analysts at the bank said, but on its own, that is not enough, with a lack of catalysts seeing prices drift recently.
“At current levels, most shares offer good value - with an average 2023e dividend yield of 8.2% in 2023e (ex Just), however, this 'cheapness' alone is unlikely to attract investors.
“Instead, we think bottom-up themes will provide relevant entry and exit points over the year,” hence Aviva’s appeal, added the analysts.
M&G PLC (LSE:MNG) is the other major change in the sector, with its target price reduced to 220p from 225p.