On Apr 6, 2013, Zacks Investment Research upgraded
Montpelier Re Holdings Ltd . ( MRH ) to a Zacks Rank
#1 (Strong Buy).ARCH CAP GP LTD (ACGL): Free Stock Analysis
ReportAXIS CAP HLDGS (AXS): Free Stock Analysis
ReportMONTPELIER RE (MRH): Free Stock Analysis ReportXL GROUP PLC (XL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
Why the Upgrade?
Montpelier remains well positioned to deliver solid numbers going
forward, given its increased exposure in the property catastrophe
lines of business. In addition, the company's efforts to focus on
underwriting operations, augment capital flexibility and strengthen
competitive position bode well going forward.
Additionally, Montpelier's launch of Blue Capital marks its
efforts to expand the underwriting partnership business. Blue
Capital is an asset management platform offering an array of
catastrophe reinsurance-linked investment products to institutional
and retail investors.
Montpelier also expects a 1% to 5% increase in net written
premiums, excluding the impact of reinstatements, for the first
quarter of 2013.
With respect to earnings trend, Montpelier delivered positive
earnings surprises in all of the last 4 quarters with an average
beat of 44.7%. The Zacks Consensus Estimate for the first quarter
of 2013 currently stands at 79 cents.
A steady improvement in operating performance is also reflected by
Montpelier's escalated book value per share. Moreover, the company
has been retaining shareholders' confidence by returning wealth via
share repurchases and dividend hikes. It has already bought back 8
million shares in January this year.
Based on Montpelier's fundamental strength and focus on its
underwriting operations, the Zacks Consensus Estimate for 2013 rose
2.1% to $2.47 per share in the last 60 days, with one upward
revision in estimates. The estimate for 2014 is pegged at $2.60,
rising 3.6% in the last 60 days, with one upward revision in
Other Stocks to Consider
Apart from Montpelier, other stocks that are outperforming in the
insurance sector include AXIS Capital Holdings Ltd
. ( AXS ),
XL Group Plc ( XL ) and Arch
Capital Group Ltd. ( ACGL ). All these
stocks carry a Zacks Rank #1 (Strong Buy).