Wunderlich Securities Reiterates Buy Rating, $34 PT On HCC

Wunderlich Securities met with CEO John Molbeck of HCC Insurance Holdings HCC at the Association of Insurance and Financial Analysts (AIFA) conference on March 1.

“Despite difficult market conditions, Mr. Molbeck remains confident in HCC's ability to deliver superior underwriting results and double-digit return on equity,” Wunderlich Securities writes. “Energy, medical stop-loss, and aviation are key markets where pricing is adequate to provide HCC underwriting profitability.

“We believe HCC's competitive advantages are comprised of superior underwriting and expense controls. In addition, HCC has an excellent credit rating which offers greater flexibility.

“We reiterate our Buy rating and $34 price target on HCC shares.”

HCC Insurance Holdings closed Thursday at $30.73.