AXA: Oddo's best pick in insurance sector

(CercleFinance.com) - Oddo yesterday organized a roadshow with AXA's management in Paris.

Following this meeting, Oddo confirms its Buy rating on the share, which remains its best pick in the insurance sector, maintaining its target price at 28 euros.

The group says it is not changing its asset allocation and that it maintains an unchanged risk profile on its investments despite falling rates, Oddo says.

The broker points out that the gradual decline in investment returns is not leading AXA to revise its life insurance margin guidance for 2019/2020 (i.e. the decline in these returns will be passed onto policyholders).

Regarding its solvency margin, although this is affected by the decline in rates, the group believes that it remains comfortable (note that it was 190% at the end of June, noting that AXA aims for a solvency margin of 170%/220%), Oddo adds.


Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.