Barclays on U.S. Insurance: Upgrading ALL, RNR to OW & Downgrading PRU Based on Inflection Points
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Up: 11 | Down: 18 | New: 17
Rating Summary:
18 Buy, 16 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Barclays on U.S. Insurance: Upgrading ALL, RNR to 1-OW & Lowering PRU to 2-EW Based on Inflection Points
Analyst, Jay Gelb, said, "We are upgrading Allstate (NYSE: ALL) to Overweight from Equalweight as a result of earnings power achieving a favorable inflection point. We are raising our EPS estimate for ALL to $4.35 from $4.25 in 2013 due to better underwriting...Allstate has now delivered three quarters of stronger-than-expected earnings; the 1Q12 result makes it clear Allstate is delivering on its goal to improve returns in homeowner's insurance." PT moved up $1 to $39.
"We are downgrading Prudential (NYSE: PRU) to Equalweight from Overweight despite yesterday's sell-off. The weak 1Q12 operating and core earnings signal PRU's challenges to achieve 2012-13 ROE goals and its valuation has room to compress especially vs MetLife (NYSE: MET). We are lowering our EPS est again for PRU to $6.25 (11% ROE) from $6.50 in 2012, and to $7.75 (12.5% ROE) from $8.00 in 2013 after less confidence in achieving ROE targets."
"We are upgrading RenaissanceRe (NYSE: RNR) to Overweight from Equalweight. RNR, which we view as becoming a core investment within P&C, is one of the best-positioned underwriters to benefit from rising global property cat reinsurance prices due to its strong balance sheet. RNR's FY12 guidance of 20%+ growth in managed cat premiums appears conservative." PT raised from $85 to $95, FY12 EPS raised from $8.50 to $9.00 and FY13 from $7.75 to $9.00.
Analyst, Jay Gelb, said, "We are upgrading Allstate (NYSE: ALL) to Overweight from Equalweight as a result of earnings power achieving a favorable inflection point. We are raising our EPS estimate for ALL to $4.35 from $4.25 in 2013 due to better underwriting...Allstate has now delivered three quarters of stronger-than-expected earnings; the 1Q12 result makes it clear Allstate is delivering on its goal to improve returns in homeowner's insurance." PT moved up $1 to $39.
"We are downgrading Prudential (NYSE: PRU) to Equalweight from Overweight despite yesterday's sell-off. The weak 1Q12 operating and core earnings signal PRU's challenges to achieve 2012-13 ROE goals and its valuation has room to compress especially vs MetLife (NYSE: MET). We are lowering our EPS est again for PRU to $6.25 (11% ROE) from $6.50 in 2012, and to $7.75 (12.5% ROE) from $8.00 in 2013 after less confidence in achieving ROE targets."
"We are upgrading RenaissanceRe (NYSE: RNR) to Overweight from Equalweight. RNR, which we view as becoming a core investment within P&C, is one of the best-positioned underwriters to benefit from rising global property cat reinsurance prices due to its strong balance sheet. RNR's FY12 guidance of 20%+ growth in managed cat premiums appears conservative." PT raised from $85 to $95, FY12 EPS raised from $8.50 to $9.00 and FY13 from $7.75 to $9.00.
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