Sterne Agee Lowers EPS Estimates on Montpelier Re Holdings

A report from Sterne Agee reiterates its Neutral rating and $21 price target, and lowers its FY12/13 EPS estimates from $2.60/$2.70 to $2.50/$2.60 on Montpelier Re Holdings MRH. The report states, “With the previously announced sale of its U.S. insurance business (about $55 mm of annual premium) to Selective Insurance Group (SIGI - $15.58 - Not Rated), the company is exiting a business which would likely have lacked scale for several years and instead frees up capital and other resources to focus more on property and specialty classes of business written out of the Bermuda and London platforms.” MRH closed yesterday at $17.35.