Barclays sees tailwinds for insurance brokers, raises PTs
** Brokerage Barclays hikes PTs on insurance brokerage firms citing latest industry pricing data
** Barclays sees pricing to be in line with recent industry trends
** While prices decelerate for the property line, the brokerage observes a strong "accelerating increase" in casualty lines' prices
** "Combined with the continuing increase in demand for coverage for these (casualty) types of risks, we see an environment in which casualty pricing can continue to accelerate" - brokerage
** Brokerage feels the potential of higher-for-longer inflation environment as a result of the U.S. elections might aid insurance brokers sustain above average organic growth, going into 2025 and 'possibly' into 2026
** Barclays' estimates suggest further upbeat view, mostly in the reinsurance and brokerage space
The price target changes:
Insurance Brokers | New PT | Old PT |
Aon | $440 | $394 |
Arthur J. Gallagher | $308 | $300 |
Brown & Brown | $119 | $108 |
Marsh & McLennan | $246 | $236 |
Ryan Specialty Holdings | $88 | $76 |
Willis Tower Watson | $302 | $278 |
Reporting by Pritam Biswas in Bengaluru
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