BUZZ-London Market Insurers: UBS flags valuations nearing highs

** British insurer Amlin (LSE: AML.L - news) down 3 pct & top loser on FTSE-350 INSURANCE Financial index & peer Beazley off 1.2 pct & 2nd top loser on UBS (NYSEArca: FBGX - news) comments

** Brokerage says the London market sub-sector has outperformed the Eurostoxx by c.10 pct over past month and valuations are close to high

** Downgrades Amlin to "sell" from "neutral" & cuts TP on stock to 440p from 460p

** 3 of 18 brokerages rate Amlin stock "buy" or higher, 9 "hold" and 6 "sell" or lower; their mean TP is 457.96p

** UBS says given opacity of growth lines and cyclical headwinds, expected sector earnings growth of c.5-11 pct would be too high for co, though appropriate for peers Hiscox (Stuttgart: H2X3.SG - news) and Beazley (LSE: BEZ.L - news)

** Initiates Beazley with "neutral" & TP 310p vs mean TP of 294.41p, pegging the U.S. casualty book a stabilising factor in the current market

** Beazley rated as "buy" or higher by 8 of 11 analysts, "hold" by 2 and sell or lower by 1

** Peers Hiscox (rated "neutral") down c.2 pct and 3rd top loser on index, while Lancashire (rated "neutral") down c.7 pct (RM (LSE: RM.L - news) : esha.vaish.thomsonreuters.com@reuters.net)