Zurich Insurance: shares fall on broker's downgrade.
(CercleFinance.com) - Shares in Zurich Insurance were among the sharpest fallers on Switzerland's SMI index today, dropping 1.
7%, after Jefferies downgraded the stock from "hold" to "underperform".
The broker, which has cut its target price from 273 Swiss francs to 236 Swiss francs, says the Swiss insurer remains a "difficult company to manage and predict."
Jefferies expects management's combined ratio guidance for 2019 at 95-96% to mark underwriting peak, with downward pressure on earnings thereafter likely to limit dividend growth.
The broker also says it remains unconvinced on momentum at its life and Farmers unit.
These comments sent the shares down 1.7% at 274.30 Swiss francs.
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