By Simon Kennedy
1%0%-1%-2%
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UK:AV UK:RSL UK:SL UK:OML UK:PRU
LONDON (MarketWatch) -- Goldman Sachs on Tuesday shook up its ratings on the U.K. life insurance sector, saying the industry could face a period of decline due to a trend towards simpler and cheaper savings products. "Insurers are likely to find their role in the savings industry reduced to administration and the provision of tax wrappers. And even here, outsourcers are encroaching," the broker said. Goldman downgraded Aviva PLC UK:AV +0.26% to neutral from buy and also cut Resolution Ltd. UK:RSL -1.32% and Standard Life PLC UK:SL -0.55% to sell from neutral. The broker said Old Mutual PLC UK:OML +1.28% remains its top pick as it also upgraded Prudential PLC UK:PRU +1.89% PUK +0.82% to buy from neutral in light of its position in other markets. Legal & General Group PLC UK:LGEN +1.55% and St. James's Place PLC UK:STJ +2.01% were both upgraded to neutral from sell.
