AHL EPS Beats Expectations, Revenue Growth Weak
Analyst Brian Meredith of UBS maintains his "buy" rating on Aspen Insurance (NYSE: AHL), while reducing his estimates for the company. The target price for AHL has been raised from $30 to $31.
Aspen Insurance has reported its Q4 EPS significantly ahead of the estimates and the consensus, driven by lower tax and higher-than-expected reserve releases. While AHL’s underwriting profitability was solid, revenue growth was weak, the analyst says.
AHL’s board has authorized a new $400 million buyback program over two years. UBS has reduced its EPS estimates for 2010 and 2011 have been reduced from $3.75 to $3.65 and from $4.25 to $4.00, respectively, to reflect a lower investment yield and modestly higher combined ratios.
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