< The 2014 All-America Research TeamThomas GallagherCredit SuisseFirst-place appearances: 0

Total appearances: 7

Team debut: 2006At No. 2 on this roster for a second year running, Thomas Gallagher of Credit Suisse is “reasonably constructive” on U.S. life insurers, he reports. The industry has “demonstrated resilience in a continued low-interest-rate environment,” says Gallagher, and he is monitoring his companies’ ability to continue managing risk successfully. The analyst is also watching for the impact on his group of developing federal capital rules, which are likely to increase requirements for more-asset-intensive and volatile lines of business, such as universal life insurance, fixed and variable annuities and long-term care, he adds. With these considerations in mind, Gallagher favors Connecticut’s Hartford Financial Services Group and Voya Financial, which is based in New York. Both stocks should do well “even if interest rates remain relatively low,” he explains, “and both companies are also well-positioned to deliver above-average capital returns, considering how we see most scenarios playing out for emerging federal capital standards.” The two insurers, moreover, are overly discounted, he adds, and Voya’s free cash flow is improving. Hartford, meanwhile, will increasingly be considered a takeover candidate, Gallagher expects, especially as it transforms into a pure-play property/casualty provider. “I value his solid analysis and honest opinions,” remarks one supporter.