Barclays Reiterates an 'Equalweight' pn Flagstone Reinsurance (FSR); 3Q11 Catastrophe Losses High; Divesting Non-Core Businesses

Barclays reiterates an 'Equalweight' pn Flagstone Reinsurance (NYSE: FSR) price target of $9.00

Barclays analyst says, "Flagstone announced higher-than-anticipated 3Q11 catastrophe losses as well as plans to divest Lloyd's and Island Heritage businesses (about one-quarter of premiums and no contribution to earnings) after two years of high catastrophe losses...Separately, FSR announced it expects 3Q11 catastrophe losses of $70mn (7% of BV which includes $35mn increase in its 1H11 catastrophe losses) as well as a $10mn net loss in its Lloyd's business. We are reducing our 2011 operating EPS estimate to a loss of $2.35 from a loss of $1.45. No change to our 2012 EPS estimate of $1.00." (Barclays cuts FY11 EPS estimate from (1.45) to (2.35)

For more ratings news on Flagstone Reinsurance click here and for the rating history of Flagstone Reinsurance click here.

Shares of Flagstone Reinsurance closed at $8.59 yesterday.

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