Keefe, Bruyette & Woods Reiterates Market Perform Rating on Montpelier Re (MRH)

Keefe, Bruyette & Woods is out with a research report this morning, where it reiterates its Market Perform rating on Montpelier Re Holdings LTD MRH; it has a $19.00 price target on the stock. The KBW analysts said, “Results beat on better current and prior year profitability, a lower expense ratio (due largely to the pre-announced reinsurance settlement), and higher investment income, with NWP in-line at +6.6%. BVPS grew 4.4% sequentially to $22.31 and MRH repurchased 0.3 mm shares. (We are) raising 2010/2011 EPS and our PT to $19, but reiterate our Market Perform.” They added, “Risks to our price target include interest rate fluctuations, demand for insurance products, and adverse economic conditions.” Montpelier Re Holdings Ltd. is a Bermuda-based reinsurer for property and casualty risks.