Beazley Group (LSE:BEZ) has been upgraded to buy by broker Berenberg, which reckons the insurer has got a grip on its cybersecurity and Covid-19 losses.
The underwriter confirmed with its interim results that its US$340mln COVID-19 loss estimate for 2020-21 remains robust, but also that it has not incurred the additional $50m expected loss related to events expected to fall in the second half, as the US and European economies have largely opened up.
Berenberg also reckons Beazley has made an impressive job of updating the market on the progress it has made on its cyber re-underwriting and risk management strategy.
“Beazley is clearly ahead of peers in the fastest-growing, increasingly complex and non-commoditised product line in insurance; we think this presents a rare opportunity for profitable and sustainable growth.”
Buy, up from hold, with a new 460p price target is the broker’s view.
Shares rose 4.3% to 398.9p.