REFILE-STOCKS NEWS EUROPE-Insurers up after Allianz cheer

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Shares in Europe's largest insurer Allianz (ALVG.DE) jump after it posts a forecast-beating rise in third-quarter profit, combining with news of AXA's (AXAF.PA) Asian buyout to boost shares in British rival Prudential (PRU.L).

Allianz, whose shares fell 8 percent over the past month, posts a 23 percent rise in operating profit [ID:nL8291920]. The stock is up 4.2 percent at 82.6 euros.

"The headline operating profit is a comfortable beat with a reassuring combined ratio and good life operating profit and new business momentum," analysts at Keefe, Bruyette & Woods says.

"We reiterate our "outperform" rating on the shares."

The news helped lift shares across the sector, with Italy's Generali (GASI.MI), up 1.7 percent, against a 1.8 percent rise in the DJ STOXX index of European insurers .SXIP.

Shares in Britain's largest insurer Prudential rise 4.7 percent to 605 pence, however, as good news from Allianz is compounded by AXA's decision to buyout its Asian assets, a move traders say highlights the value of Prudential's own Asian businesses.

Shares in AXA (AXAF.PA) are down 1.2 percent, as its plans for a 2 billion euro ($3 billion) rights issue took the shine off the shares [ID:nSYD420146].

"We think this capital increase was expected by some as the dismantle of ING created opportunities especially in Asia that global insurers could not miss, but a buyout of minorities of AXA APH makes sense too," one trader says.