Goldman Sachs upgrades UK's Admiral, Hiscox on retail property and casualty insurance upside

Goldman Sachs upgrades Admiral ADML.L to "buy" from "sell", says co well positioned with low USD FX exposure and a retail property and casualty focus; poised to benefit from rising UK motor prices, market consolidation, and growing home insurance demand

Brokerage likes Hiscox's HSX.L business mix, which is almost 50% retail and says stock offers the highest earnings per share and top-line growth vs London market peers; upgrades stock to "buy" from "neutral"

Goldman, however highlights rising competition in the UK bulk annuities market as a key risk for Legal & General LGEN.L; downgrades stock to "neutral" from "buy"

Shares of ADML and HSX up ~2% and 0.5%, respectively, while LGEN is down ~1%

"Sector fundamentals have generally been resilient, but given market trends our top-down preference remains for retail P&C (Property & Casualty) over commercial P&C, or P&C Re(Reinsurance)", brokerage adds