Broker snap: Nomura bullish on insurers

27th Nov 2009 11:07

Most of the threat from the latest Solvency 2 proposals is unjustified and is unlikely to materialise, says Nomura, leaving it upbeat about prospects for UK insurers.The broker notes growing industry and political opposition to Solvency 2, a fundamental review of the capital adequacy regime for the European insurance industry."We believe investment opportunities exist in areas where compromise is starting to appear, the main example being UK annuities," it says.Nomura maintains its 'buy' stance on Legal & General, Aviva and Prudential, the three stocks it thinks are most exposed to this issue, with its price target on L&G raised to 125p from 115p