Wunderlich Comments On In-Line Delphi 1Q11 Results

In a report published by Wunderlich, Delphi Financial Group DFG reported 1Q11 results in line with expectations of operating EPS of $0.91. Wunderlich said that book value increased 15% to $28.02 compared to $24.34 a year ago. “DFG is achieving price increases to combat low interest rates and increased claims frequency on long-term disability exposures. We believe the company is gaining market share in key markets as represented by annual premium growth in 1Q11 of 8%. The recent results underscore our confidence that DFG will achieve our forecast of positive EPS growth in 2011 with a superior ROE of 12.8%. Therefore, we are raising our price target to $37 from $34, or 1.2 times 2011 estimated book value of $30.57. ” Delphi Financial Group closed yesterday at $31.57.