Hiscox Ltd (LSE:HSX) numbers underlines the attractive conditions available in the reinsurance sub-sector, where management is leaning into decent margins by retaining more premiums on its balance sheet, says Panmure Liberum.
“There is also a pickup in both top-line growth and margins across the Retail division as a refocus on the US partnerships and recent marketing spend starts to gain traction.
“We roll forward our valuation and note the improving fundamentals in both the Big-ticket and Retail divisions, together with the possibility of technical momentum behind the stock as the valuation lag versus the pricing power exhibited across the sector eases.“
The possibility of re-entering the FTSE100 index may also provide near-term support, notes PL, which has increased its target price to 1,343p and upgraded its recommendation to a 'buy' rating.