Admiral is not a post-Brexit safe-haven stock - Macquarie Research

22nd Aug 2016 15:34

(ShareCast News) - Macquarie Research disagrees with the market view that insurer Admiral is a post-Brexit referendum safe-haven stock, and is in fact a seller of the equity."Admiral is negatively exposed to the flattening yield curve (due to the long duration of the Periodic Payment Order liabilities)," said Philip Kett of Macquarie."We question whether the lower solvency II ratio will jeopardise Admiral's capital returns," he said, observing that the insurer's Solvency II ration was already at 175%."We are sellers of Admiral. We disagree with the post-Brexit market view that Admiral is a safe-haven stock," Kett said.