Time to Review the Value of EU Insurers

We are assessing the effect of the eurozone debt situation of the EU insurance sector and reviewing our fair value estimates for the companies we cover

Morningstar.co.uk Editors 7 September, 2011 | 5:22PM
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The European insurance industry has had a difficult time recovering after the global financial crisis. We believe the sector is particularly challenged because its products have commodity characteristics, which makes it difficult for an insurer to distinguish itself from the pack and increase market share. Even firms which are tapping into emerging market growth have a hard time catering to the increasingly sophisticated and saturated markets.

The current eurozone sovereign debt crisis has the potential to further erode the outlook for the industry. We have put the European insurers we cover under review as we assess the effect of Europe’s debt situation on our fair value estimates.

In the meantime, we highlight our current thesis on the insurers in our research universe. Premium users can access the full equity research by clicking on the company names.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Prudential PLC1,281.00 GBP0.00Rating

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Morningstar.co.uk Editors  analyse and report on shares, funds, market developments and good investing practice for individual investors and their advisers in the UK.