Zacks Analysts Downgrade Montpelier Re
Bermuda’s Montpelier Re Holdings was downgraded by equities research analysts at Zacks Investment Research from a “neutral” rating to an “underperform” rating in a research note issued to investors on Monday [Nov. 14].
The analysts currently have a $16.00 price target on the stock.
Zacks’ analyst wrote, “We are downgrading Montpelier to Underperform from Neutral on the back of loss reported in the third quarter results. Montpelier Re Holdings’ operating loss 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.
“The current pricing environment in the primary insurance market and the stressed economy are expected to restrict the top-line growth.
“However, the company believes restructuring, has done away with its segment MUSIC to focus more on its short tail reinsurance underwriting. Also, the divestiture will also help the company deploy capital for its Bermuda and London platforms. 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 agency 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 operates through three reportable segments: Montpelier Bermuda, Montpelier Syndicate 5151 and MUSIC.
