European Insurance: Resilient but lacking EPS momentum

Research evidence excerpt

European Insurance: Resilient but lacking EPS momentum

Equity Research

26 May 2026

European Insurance

Resilient but lacking EPS

momentum

1Q26 confirmed weaker top-line trends in P&C, with Life European Insurance

somewhat softer due to market volatility. Headline CoRs were NEUTRAL Unchanged

flattered by benign cats but underlying margins further European Insurance

Ivan Bokhmatnormalise as pricing fades. Capital remains robust, but

limited EPS momentum and stretched valuations cap the +44ivan.bokhmat@barclays.com(0)20 7773 0417

upside. Barclays, UK

Claudia Gaspari

+44 (0)20 3134 6039Resilient earnings, robust capital, but limited EPS momentum and stretched valuations.

claudia.gaspari@barclays.com

Insurers retain their defensive characteristics against an uncertain backdrop. Resilient, slow- Barclays, UK

moving earnings and robust (arguably excessive) capital positions appear fairly priced to us at

current valuation levels with the sector’s dividend yield spread over RFR at the bottom of its Alessia Magni, CFA

+44 (0)20 3555 7393historical range (220 bps vs 380bps average). Meanwhile, operating momentum is stagnating,

alessia.magni@barclays.com

which suggests limited scope for earnings revisions. We remain neutral on fundamentals and Barclays, UK

our strategy team underweight SXIP. We continue to look for a mix of relative valuation appeal,

EPS revisions and some defensive qualities – asr, AXA, Munich Re, and NN key Overweights. Larissa van Deventer

+44 (0)20 3555 1527

Headline results ok, but little to drive earnings forward. P&C top-line remained under larissa.vandeventer@barclays.com

Barclays, UKpressure, with most companies missing expectations, pointing to limited scope for revisions.