Aviva PLC(LON:AV.) M&G PLC (LON:MNG) and St James Place PLC (LON:STJ) are best-placed among life insurers during the current low-interest-rate environment, suggests JP Morgan.
Growth for lifers in these circumstances can be hard to achieve adds the US bank, but Legal and General and Just Group have shown it can be done those it likes are now ready to do the same
One important consideration is that the majority of the growth comes from one business line, such as annuities, which in the broker’s view is a pure-play on asset risk and leverage.
“We think Aviva offers potential to move up on the risk curve following its current restructuring and. at some point, M&G could be able to grow through inorganic growth.
Aviva, M&G and SJP are rated ‘overweight’ with 'neutral 'the view on Legal & General, Just Group and also Prudential, which JPM says is now more of a play on Asian markets.