Barclays Reiterates an 'Overweight' on ACE Ltd (ACE); 1Q11 Catastrophe Losses Including Japan Significant But Mangeable
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Price: $111.02 +0.87%
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Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays reiterates an 'Overweight' on ACE Ltd (NYSE: ACE), PT $68.
Barclays analyst says, "Ace provided an initial estimate for total 1Q11 catastrophe losses (including Japanese earthquake losses) of $410 mn-$460 mn A/T ($1.22-$1.36/shr, 2% of BV). Ace is the first P&C insurer to release Japanese earthquake losses."
"Reiterate rating on ACE, which we believe benefits from strong management and a solid balance sheet and could continue deploying excess capital in accretive acquisitions...We are reducing our 2011 EPS est for Ace to $6.10 from $6.95 due to 1Q11 cat losses. No change to our 2012 EPS est of $7.15."
"(Re)Insurers with the most exposure to 1Q11 catastrophe losses: We anticipate
Munich Re, Swiss Re, Berkshire Hathaway, and RNR could have the most exposure followed by Everest Re (NYSE: RE), PartnerRe (NYSE: PRE), Montpelier Re (NYSE: MRH), Flagstone Reinsurance (NYSE: FSR), Aspen (NYSE: AHL), which are also likely to report a material impact to earnings. Primary insurers including AIG (NYSE: AIG), XL Capital (NYSE: XL), Chubb (NYSE: CB) and Arch (Nasdaq: ACGL) likely have exposure as well, although we anticipate these companies have reinsurance protection."
For more ratings news on ACE Ltd click here and for the rating history of ACE Ltd click here.
Shares of ACE Ltd closed at $60.15 yesterday.
Barclays analyst says, "Ace provided an initial estimate for total 1Q11 catastrophe losses (including Japanese earthquake losses) of $410 mn-$460 mn A/T ($1.22-$1.36/shr, 2% of BV). Ace is the first P&C insurer to release Japanese earthquake losses."
"Reiterate rating on ACE, which we believe benefits from strong management and a solid balance sheet and could continue deploying excess capital in accretive acquisitions...We are reducing our 2011 EPS est for Ace to $6.10 from $6.95 due to 1Q11 cat losses. No change to our 2012 EPS est of $7.15."
"(Re)Insurers with the most exposure to 1Q11 catastrophe losses: We anticipate
Munich Re, Swiss Re, Berkshire Hathaway, and RNR could have the most exposure followed by Everest Re (NYSE: RE), PartnerRe (NYSE: PRE), Montpelier Re (NYSE: MRH), Flagstone Reinsurance (NYSE: FSR), Aspen (NYSE: AHL), which are also likely to report a material impact to earnings. Primary insurers including AIG (NYSE: AIG), XL Capital (NYSE: XL), Chubb (NYSE: CB) and Arch (Nasdaq: ACGL) likely have exposure as well, although we anticipate these companies have reinsurance protection."
For more ratings news on ACE Ltd click here and for the rating history of ACE Ltd click here.
Shares of ACE Ltd closed at $60.15 yesterday.
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