LONDON (MarketWatch) -- Goldman Sachs upped Standard Life (UK:SL. 202.00, +2.60, +1.31%) to buy from neutral, cut Amlin (UK:AML 383.40, -13.40, -3.38%) and Banca Generali (IT:BGN 7.70, -0.15, -1.91%) to neutral from buy and upgraded St. James's Place to neutral from sell in a note on the European insurance sector, where it points out the operational headwinds, notably in property and casualty, where the pricing outlook appears challenging. "While life stocks have justifiably rallied on the back of improving markets, we remain somewhat sceptical of the sustainability of this for all, given the low velocity of balance sheets, and ongoing challenges from limited capital generation and limited financial flexibility in the face of an uncertain regulatory outlook," the broker said.
