Legal & General Group PLC (LON:LGEN) has been downgraded by US broker Citigroup, which has advised switching away from multi-line insurers.
The bank likes insurers around the mid-to-lower end of sector P/E multiples (6x-24x) that have either locked-in cash flows from closed books or are improving their return on equity and earnings quality.
Following the review, life and general insurer L&G is now rated as neutral alongside Swiss group Zurich.
“We pivot away from the multi-lines, reiterate our positive view on the reinsurers, turn more positive on Dutch life, and highlight our stock-specific calls on Direct Line (LON:DLG) and Swiss Life,” Citi said in the note.
Shares in L&G eased 1.4% to 254.1p and Direct Line by 1% to 309.3p.