Analyst Views: Did Catlin Group perform in line with your expections?
EAMONN FLANAGAN | SHORE CAPITAL
Catlin’s results were better than we and the market had expected but, despite a capital buffer which, at 21 per cent, is above its targeted range of between 10 per cent and 20 per cent, the group remains unwilling to return capital to shareholders. We reiterate our hold recommendation on the stock.
NICK JOHNSON | NUMIS
Catlin has delivered a good result for 2013, clearly helped by below average catastrophe losses. We continue to think the shares are fairly valued on earnings and our target price increases by 10p to 570p. We recommend a hold rating on stock.
SARAH LEWANDOWSKI | ESPIRITO SANTO
The rating outlook is certainly more challenging with increased capacity (both traditional and non-traditional) and lower catastrophe losses contributing to increased pressure on rates. However, Catlin believes acceptable margins exist in its portfolio. We remain buyers.