Property & Casualty Insurance
(AIG) American International Group Upped to Neutral
Last week, we upgraded our recommendation on American International Group Inc. (AIG) to Neutral from Underperform based on its improving capital flexibility. Besides, asset disposals and repayment of a chunk of debt appears to be favorable for the new stock buyback program. AIG...
14Jan2012 | vitalstocks | 0 comments | Continued(HTH) Hilltop Holdings Incorporated – Bull of the Day
We are upgrading our recommendation on Hilltop Holdings Inc. (HTH) to Outperform based on its sound capital position along with a risk-free balance sheet, which also paved way for resumption of share buybacks, assisting shareholders’ confidence in the stock. The company...
13Jan2012 | vitalstocks | 0 comments | Continued(HTH) Hilltop Holdings Incorporated – Bull of the Day
We are upgrading our recommendation on Hilltop Holdings Inc. (HTH) to Outperform based on its sound capital position along with a risk-free balance sheet, which also paved way for resumption of share buybacks, assisting shareholders’ confidence in the stock. The company...
9Jan2012 | vitalstocks | 0 comments | Continued(CINF) Cincinnati Financial Ratings Updated by A.M Best
As a part of its annual rating review, rating agency A.M. Best declared its rating action on Cincinnati Financial Corp. (CINF) and its operating subsidiaries. The agency has downgraded the issuer credit rating (“ICR”) as well as the debt rating of Cincinnati Financial by...
29Dec2011 | vitalstocks | 0 comments | Continued(AIG) American International Group ILFC to Raise $650 Million from Notes
Yesterday, American International Group Inc.’s (AIG) aircraft leasing unit – International Lease Finance Corporation (ILFC) – announced the issue of long term notes worth $650 million. Accordingly, the unsecured notes of $650 million are issued at an initial price of $100.00...
21Dec2011 | vitalstocks | 0 comments | Continued(HIG) Hartford Financial Services Group Vends Private Placement Unit
Yesterday, Hartford Financial Services Group Inc. (HIG) announced an agreement to sell its subsidiary Hartford Life Private Placement (HLPP) to Philadelphia Financial Group Inc. for $117.5 million. The transaction is subject to regulatory approval and closing conditions and is...
7Dec2011 | vitalstocks | 0 comments | Continued(BRKB) Berkshire Hathaway-B (BRKB) – Bull of the Day
Berkshire Hathaway-B (BRKB) reported its third quarter 2011 operating earnings of $1.54 per share up 36% year-over-year, led by higher operating income across all the business segments except Finance & Financial Products. Insurance, Railroad, Utilities and Energy, Manufacturing,...
2Dec2011 | vitalstocks | 0 comments | Continued(BRKA) Berkshire Hathaway’s Buffett Adds Hometown Newspaper
On Wednesday, Warren Buffett, the Chairman and CEO of Berkshire Hathaway Inc. (BRKA) (BRKB), announced an acquisition to buy The Omaha World-Herald Company, publisher of Nebraska’s principal daily newspaper. The deal would add the World-Herald, six other daily newspapers and...
2Dec2011 | vitalstocks | 0 comments | Continued(RLI) RLI Corporation Continues Expansion
RLI Corp. (RLI) continues to benefit from its business expansion drive, extensive product offerings, strong local branch network and focus on specialty insurance lines. The company scores strongly with the rating agencies and remains focused on returning value to its shareholders...
1Dec2011 | vitalstocks | 0 comments | Continued(WRB) W.R. Berkley Corporation Upgraded to Neutral
We are upgrading our recommendation on W.R. Berkley Corp. (WRB) to Neutral from Underperform on the back of third-quarter earnings beat. The company reported earnings of 44 cents per share, 6 cents ahead of the Zacks Consensus Estimate. The outperformance stemmed from higher...
1Dec2011 | vitalstocks | 0 comments | Continued(RNR) RenaissanceRe Shares Downgraded to Underperform
We have downgraded our recommendation on RenaissanceRe Holdings Ltd. (RNR) to Underperform from Neutral based on the company’s poor operating results in the third quarter, coupled with the declining interest rate scenario, which have also led to a reduced earnings outlook for...
30Nov2011 | vitalstocks | 0 comments | Continued(PGR) Progressive Corporation Analyst Still Neutral on Shares
Progressive Corp. (PGR) holds a dominant position in product, service and distribution innovation, especially in Personal Auto. The company continues to focus on customer retention, actively manage its capital position and return wealth to its shareholders. However, these positives...
30Nov2011 | vitalstocks | 0 comments | Continued(AIG) TARP Continues to Recover Funds
The Treasury has added $12.2 million to its kitty by selling warrants in 17 Troubled Asset Relief Program (TARP) banks that have already repaid the bailout money. This indicates that the Treasury is clutching every opportunity to recoup the cost of the $700 billion bailout program...
28Nov2011 | vitalstocks | 0 comments | Continued(MRH) Montpelier Re Holdings – Bear of the Day
We are downgrading Montpelier Re Holdings (MRH) to Underperform from Neutral on the back of loss reported in the third quarter results. Montpelier Re Holdings’ operating loss came in much wider than the Zacks Consensus Estimate, led by catastrophe losses, resulting from...
28Nov2011 | vitalstocks | 0 comments | Continued(HIG) Hartford Financial Services Group – Bear of the Day
We are downgrading our recommendation on Hartford Financial Services Group (HIG) to Underperform based on its weak third quarter results. The results surpassed the Zacks Consensus Estimate but declined from the year-ago quarter, primarily due to poor operating performance, with...
22Nov2011 | vitalstocks | 0 comments | Continued(BRKB) International Energy Agency Offers Sobering Outlook
Not all the important news is centered on Greece and Italy. The International Energy Agency, or IEA, this week released its World Energy Outlook. The IEA is not some wild-eyed “peak oil/global warming” fringe group. They are about as mainstream and staid a group as...
12Nov2011 | vitalstocks | 0 comments | Continued(TRV) The Travelers Companies Analyst Maintains Neutral on Shares
The Travelers Companies Inc. (TRV) continues to benefit from its strong market position and economies of scale. The company spent a higher amount in buying back shares supported by its balance sheet strength. It also scores strongly with the credit rating agencies. However, these...
10Nov2011 | vitalstocks | 0 comments | Continued(TWGP) Tower Group Misses on Catastrophic Losses
Property and casualty insurer Tower Group Inc.’s (TWGP) reported third quarter 2011 operating loss of 38 cents per share, substantially worse than the Zacks Consensus Estimate of a loss of 17 cents. Results also contrasted unfavorably with the prior-year quarter’s earnings...
9Nov2011 | vitalstocks | 0 comments | Continued(AIG) American International Group – Bear of the Day
American International Group’s (AIG) third-quarter loss came in significantly worse than the Zacks Consensus Estimate and year-ago quarter based on weak global cues, sluggish insurance dynamics and consistent cash outflow. Although some stability was witnessed in core operations,...
7Nov2011 | vitalstocks | 0 comments | Continued(AIG) American International Group Loss Soars on Weak Dynamics
American International Group Inc. (AIG) reported third quarter operating loss per share of $1.60, which came in way higher than the Zacks Consensus Estimate of a loss of 8 cents and 84 cents reported in the year-ago quarter. Consequently, operating loss of $3.0 billion increased...
6Nov2011 | vitalstocks | 0 comments | Continued(WRB) W. R. Berkley Enhances Shareholder Value
On November 3, 2011, property and casualty insurer W. R. Berkley Corp. (WRB) announced that its Board has increased its share repurchase authorization to 10 million shares, which translates into approximately 7% of the company’s 144.5 million outstanding shares as of September...
6Nov2011 | vitalstocks | 0 comments | Continued(CINF) Cincinnati Financial Reports Quarterly Earnings in Line
Cincinnati Financial Corp. (CINF) has reported third quarter 2011 operating earnings of 13 cents per share, in line with the Zacks Consensus Estimate, but down 62% year over year. Year-over-year earnings declined due to high catastrophe incidence during the quarter. Revenue for...
31Oct2011 | vitalstocks | 0 comments | Continued(PRE) PartnerRe Analyst Maintains Neutral Rating
We have reiterated our Neutral recommendation on PartnerRe Ltd. (PRE) based on the recent catastrophe (CAT) losses that have severely dampened the bottom line, partially offset by a risk-free balance sheet and a fair amount of liquidity. PartnerRe’s second quarter operating...
18Oct2011 | vitalstocks | 0 comments | Continued(CINF) Cincinnati Financial Reiterated at Underperform
We are maintaining our Underperform rating on Cincinnati Financial Corp. (CINF), as we believe that a weak economy, low investment yield and bad weather will weaken its return on equity. Cincinnati Financial recently predicted cat losses of $88-98 million after suffering a weather-related...
17Oct2011 | vitalstocks | 0 comments | Continued(MRH) Montpelier Estimates Catastrophe Loss
Montpelier Re Holdings Ltd. (MRH) expects a third quarter preliminary net loss of $30 million from US catastrophes including Hurricane Irene and the Texas wildfires, $20 million from US regional aggregate covers and $10 million from the July Danish floods. Montpelier also expects...
17Oct2011 | vitalstocks | 0 comments | Continued(CINF) Cincinnati Financial Estimates Catastrophe Loss
Yesterday, property and casualty insurer Cincinnati Financial Corp. (CINF) declared a preliminary pre-tax catastrophe loss (cat loss) estimate of about $88–$98 million, which will be reflected in its third quarter 2011 results. The losses mainly emanated from Hurricane Irene...
13Oct2011 | vitalstocks | 0 comments | Continued(ALL) Allstate Aquires Esurance and Answer Financial from White Mountains Insurance Group
On Friday, Allstate Corp. (ALL) announced the completion of the acquisition of Esurance and Answer Financial from White Mountains Insurance Group Ltd. (WTM) for $1.0 billion. This marks the next biggest acquisition for the company since 1999, when it bought American Heritage...
13Oct2011 | vitalstocks | 0 comments | Continued(WRB) W.R. Berkley Corp.- Bear of the Day
We are downgrading our recommendation on W.R. Berkley Corp. (WRB) to Underperform from Neutral, reflecting slightly lower investment yield assumptions and modestly higher loss ratio forecasts which would eat into underwriting margins. Berkley has been hurt by soft pricing conditions...
5Oct2011 | vitalstocks | 0 comments | Continued(MRH) Montpelier Re Holdings Unit Sees Rating Action on MUSIC
Following the announcement of Montpelier Re U.S. Holdings Ltd., a wholly-owned subsidiary of Montpelier Re Holdings Ltd. (MRH), to divest Montpelier US Insurance Company (MUSIC), A.M. Best Co. has put the financial strength rating (FSR) of A- (Excellent) and issuer credit rating...
24Sep2011 | vitalstocks | 0 comments | Continued(FSR) Humana Rating Affirmed By A.M. Best
The rating agency A.M.Best Co. has affirmed the financial strength ratings (FSR) and the issuer credit ratings (ICR) of the health insurer Humana Inc. (HUM) and conferred a debt rating of “bbb” to the company. All the ratings carry a stable outlook, indicating the company’s...
22Sep2011 | vitalstocks | 0 comments | Continued