Zacks Upgrades Bermuda’s Montpelier Re
Montpelier Re Holdings was upgraded by equities research analysts at Zacks Investment Research from an “underperform” rating to a “neutral” rating in a research note issued to investors yesterday [Dec.23].
The analysts currently have a $19.00 price target on the stock.
Zacks’ analyst wrote, “We are upgrading Montpelier to Neutral from Underperform.
“We believe that vending Montpelier US Insurance Company [MUSIC], acquisition of a property catastrophe reinsurance portfolio, and expansion of capital partnership relationships will help the company to remain more focused on underwriting operations, augment capital flexibility, and solidify its competitive position going forward.
“Also, to return more value to shareholders, the company has raised its dividend.”
Montpelier Re Holdings’ operating loss for the third quarter came in much wider than the Zacks Consensus Estimate, led by catastrophe losses, resulting from Hurricane Irene and the Texas wildfires, US regional aggregate covers and July Danish floods.
Zacks said the current pricing environment in the primary insurance market and the stressed economy are expected to restrict top-line growth.
But Zacks said Montpelier Re Holdings continues to benefit from its transition from a Bermuda “monoline” property catastrophe reinsurer to a diversified global reinsurer, positive ratings from the credit rating agencies as well as share buybacks.
Montpelier Re Holdings Ltd., through its subsidiaries in Bermuda, the United States, the United Kingdom and Switzerland, provides insurance and reinsurance solutions to the global market.
The company is based out of Montpelier House on Pitts Bay Road.
