UPDATE: Deutsche Bank Downgrades Montpelier Re Holdings Ltd. to Hold, Lowers PT Following Disappointing 2Q14 Results

In a report published Friday, Deutsche Bank analyst Joshua Shanker downgraded the rating on

from Buy to Hold, and lowered the price target from $38.00 to $31.00. In the report, Deutsche Bank noted, “We are downgrading the shares to Hold from Buy following disappointing 2Q14 results. Our buy thesis had been predicated on confidence that Montpelier, when confronted with poor pricing, would prefer to shrink its capital base than write business with sub-par returns. While the company is already small from a market cap and market impact perspective, we believe this would not deter the company from shrinking. However, the capital base has modestly grown as return on capital at risk declines. We are downgrading shares to Hold, believing it unlikely that the shares will advance to 1.0x price-to-book.” Montpelier Re Holdings Ltd. closed on Thursday at $29.53.