HGIC Estimates Lowered Due To Weather-Related Losses in 2Q

Harleysville Group Inc. HGIC has had its "buy" rating and $37 price target reiterated by Wunderlich Securities. HGIC pre-announced an after-tax charge of $7.1M, or $0.19 per share due to weather related losses during 2Q, according to Wunderlich. Wunderlich has lowered its EPS estimate to $0.61 from $0.79 to account for the weather-related catastrophe losses, and expects net earned premiums in 2Q to decline 6% to $202.3M from $214.8M, and expects strong book value growth through the end of 2010. Harleysville Group Inc. closed yesterday at $31.99.