1141 GMT - European insurers' earnings should see limited impacts from a tougher macroeconomic backdrop as their main sensitivity is to lower risk-free yields offered by government bonds, J.P. Morgan says in a research note. "First order effects of the tariffs are practically zero for the sector, with the second orders effects from market movements the main area of focus," analysts write. Conversations with clients have been dominated by the potential earnings and book value hit from interest rates, credit spreads and equities, they say. The exposure on these fronts is limited and insurers' balance sheet remains strong, even when stress tested. J.P. Morgan sees Hannover Re and Aviva as investments less exposed to market fluctuations, flag AXA and Swiss Re's turnaround stories and add that Ageas and ASR Nederland are inexpensive. The Stoxx 600 insurance index rises 5.4%. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

April 10, 2025 07:41 ET (11:41 GMT)

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