Analyst Bullish on ACE (ACE) as Loss Reserves Favorable
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Price: $111.02 +0.87%
Rating Summary:
11 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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MKM Partners maintained a Buy on ACE Ltd (NYSE: ACE) and raised its price target to $95.00 (from $90.00). ACE is one of the world's largest multiline property and casualty insurers. Its third quarter earnings today beat the consensus estimate.
Commenting on the results, analyst Harry Fong said, "The big surprise for us was the increase in favorable loss reserve development of $236 million, roughly $100 million above the average level for the prior six quarters."
"Of the total development, $135 million was out of the company's overseas general segment that averaged about $60 million per quarter over the same period. We suspect the better development was largely a result of the company's very conservative reserving for all of the catastrophe losses in 2011 emanating from Japan, Australia and New Zealand," said Fong.
For an analyst ratings summary and ratings history on ACE Ltd click here. For more ratings news on ACE Ltd click here.
Shares of ACE Ltd closed at $80.25 yesterday.
Commenting on the results, analyst Harry Fong said, "The big surprise for us was the increase in favorable loss reserve development of $236 million, roughly $100 million above the average level for the prior six quarters."
"Of the total development, $135 million was out of the company's overseas general segment that averaged about $60 million per quarter over the same period. We suspect the better development was largely a result of the company's very conservative reserving for all of the catastrophe losses in 2011 emanating from Japan, Australia and New Zealand," said Fong.
For an analyst ratings summary and ratings history on ACE Ltd click here. For more ratings news on ACE Ltd click here.
Shares of ACE Ltd closed at $80.25 yesterday.
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