Montpelier Re Holdings Ltd.
) expects fourth quarter 2012 pretax loss from Superstorm Sandy
to approximate $95 million, net of reinsurance recoveries and
ACE LIMITED (ACE): Free Stock Analysis Report
MONTPELIER RE (MRH): Free Stock Analysis
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The company posted strong results in each of the three quarters
in 2012 aided by lower catastrophe activities. However, cat loss
stemming from Sandy might alter the picture in the final quarter.
Loss modeling companies project the amount to be approximately
The Zacks Consensus Estimate for the fourth quarter and full year
2012 are currently pegged at a loss of 31 cents and earnings of
$2.45. While fourth quarter estimates represents a year-over-year
decline of 13.6%, full year estimate translates into a year-
over-year improvement of nearly 198%.
Each of the three reported quarters exhibited huge improvement in
underwriting results, posting underwriting profit, rebounding
from underwriting loss incurred in each of the three quarters in
2011. Combined ratio also exhibited huge year-over-year
Another property and casualty insurer,
) expects loss from Superstorm Sandy to approximate $380 million
after tax, net of reinsurance and including reinstatement
premiums in the fourth quarter of 2012.
Concurrently, it revised its full year 2012 earnings expectation
to $7.43 to $7.53 per share. The guidance is lowered from the
prior expectation of $7.73-$8.03 per share to accommodate the
higher-than-expected catastrophe loss.
We believe Montpelier is well positioned to deliver solid numbers
going forward, given its increased exposure in the property
catastrophe lines of business. Also, focusing on underwriting
operations, augmenting capital flexibility, and strengthening its
competitive position augur well going forward. We retain
our Neutral recommendation on Montpelier.
Montpelier and ACE Limited, both carry a Zacks #3 Rank,
translating into a short-term Hold rating.