Jefferies double downgraded Hiscox Ltd. to 'underperform' on Wednesday.
The bank said Hiscox Retail is pitched as an attractive earnings diversifier against Specialty insurance, "but this is not clear to us when studying the weaker return on equity to peers".
Jefferies said the retail and cost plan announced in May improves returns, but the gap to peers closes only in 2028.
"So, with past and prospective book value growth lagging peers, the cost of equity needs to better reflect this reality," the bank said.
At 1100 GMT, the shares were down 1.5% at 1,375p.