Shares in CGNU confounded expectations by showing a slight rise this morning after the group was downgraded by Salomon Smith Barney.
The insurer was moved to `neutral' from `outperform' following its first quarter new life business figures last week.
Schroder set a fair value at 775p, down from 825p, raising concerns over growth forecasts in European life business, its capital position and dividend cut.
The shares were this morning selling for 696p, having risen 5.5p (0.8%) in early trading.
CGNU reports on general insurance on 1 August.
Its worldwide life business saw sales up 10% to £629m.
