UBS Securities LLC has begun research coverage of U.S. life insurers.
The firm set a "buy" rating on shares of Assurant Inc., Athene Holding Ltd., Ameriprise Financial Inc., Prudential Financial Inc., Voya Financial Inc. and FGL Holdings.
Principal Financial Group Inc., MetLife Inc., Unum Group, Brighthouse Financial Inc, Lincoln National Corp., Aflac Inc. and Reinsurance Group of America Inc. were rated "neutral."
UBS Securities sees the "neutral" rated companies as reasonable risk/reward investments but is not recommending them because their earnings are heavily influenced by equity market performance. With the S&P near all-time highs, there is a low possibility for upside for the stocks, and UBS is concerned about near-term risk despite having a favorable long-term view on the insurers.
Rated "sell" were American Equity Investment Life Holding Co. and Torchmark Corp. which the analysts believe are currently too expensive compared with their peers.
