Bank of America (NYSE:BAC), Comerica (NYSE:CMA), TD (NYSE:TD), Prudential (NYSE:PRU), Axis Capital (NYSE:AXS) Top Banks, Insurers of Morgan Stanley (NYSE:MS)

Morgan Stanley (NYSE:MS) said they see the banking and the insurance industry being the big winners for 2011, with their top names being Bank of America (NYSE:BAC), Comerica (NYSE:CMA), TD (NYSE:TD), Prudential (NYSE:PRU) and Axis Capital (NYSE:AXS).

Their large cap favorite picks are Bank of America and Toronto Dominion and Comerica, with top insurers being Axis Capital, a top insurer in P&C, and Prudential.

Morgan Stanley said they believe property and casualty insurers should get the biggest increase in the current underwriting cycle.

For the bankers, the reasoning is the growing understanding surrounding the regulations imposed on the industry, as well as low valuations. An assumed improving economy and growing capital deployment were other reasons behind the favorable outlook on the sectors.