June 13, 2019 / 8:02 AM / 2 months ago

BUZZ-UK life stocks: Brexit a buy opportunity, not a challenge - RBC

** RBC says weight of no-deal Brexit on UK life insurance stocks creates buying opportunity

** Brokerage prefers Legal & General, Aviva, Phoenix and Just Group on attractive valuations and high dividend yields

** Believes insurers’ balance sheets strength enough to withstand lower interest rates, higher credit spreads, lower property prices

** RBC says buy LGEN, AV, PHNX; views JUSTJ as oversold

** Co says recent underperformance of each stock highly correlated to underperformance following EU referendum vote in June 2016

** In the last 12 mnths vs 2016: LGEN has fallen ~3% vs ~7.5% drop, AV plummeted 95.5% vs 5.7% dip, PHNX down 7.5% vs 5.8% fall, JUSTJ slumped ~91% vs 9.9% slide

** Broker says UK life insurers growth should be largely unaffected by Brexit, as most business is sourced from within UK

** Broker expects increase in bulk annuity volumes, regardless of Brexit outcome (Reporting by Yadarisa Shabong in Bengaluru)

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