Australia's Suncorp rises as MS expects insurer to trade at bigger rival's multiples
** Shares of Australia's Suncorp Group SUN.AX rise as much as 0.8% to A$16.44
** Analysts at Morgan Stanley think that the firm has a case to re-rate itself to the multiples in which bigger rival Insurance Australia Group IAG.AX trades in
** Brokerage says investors view SUN's lower return on equity as a reason it trades at a discount to IAG stock
** Return on equity and return on core equity tier 1 capital are higher at IAG - MS
** IAG shares trade 1% higher at A$6.42
** SUN stock has risen 17.8% this year, as of last close, while IAG up 12.2%
Reporting by Rishav Chatterjee in Bengaluru
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