Berenberg names Admiral among top picks in European insurance
By Benjamin Chiou
Date: Tuesday 22 Apr 2025
(Sharecast News) - Berenberg analysts have named UK-listed motor insurer Admiral among their top picks in the European insurance sector.
In a research note hailing the upside potential of the sector, the broker said rising free cash flow, operating profit growth and increasing top-line momentum are three key reasons to buy insurers across the board.
"Our positive outlook is supported by positive updates from the insurers we cover during our pre-close calls, when we were reminded of the sector's known strong trends, as well as the readacross from the Q1 2025 results of Travelers," Berenberg said.
"Our top picks remain Admiral, Allianz, AXA, NN Group and SCOR, to which we could also add Phoenix among the UK life insurers and Swiss Re among the larger reinsurers."
For Admiral specifically, Berenberg said the current share price - despite having gained 20% so far this year - still offers an "attractive opportunity to acquire a quality company at a discount".
"Q1 market pricing data indicates price deflation is slowing and with Aviva's acquisition of Direct Line and Ageas's Esure takeover, the sector looks to be consolidating at pace. The market should be more rational as a result, we believe," the broker said.
Berenberg expects Admiral's earnings per share growth to average 5% between 2025 and 2027, and the company's dividend to yield 6-7%.
The stock was up around 1% at 3,236p by 1335 GMT.
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