J.P. Morgan Updates ACGL 1Q Estimates

J.P. Morgan has issued a report updating Arch Capital Group's ACGL first quarter estimates. J.P. Morgan writes, "On March 14, 2011, Arch Capital Group UW provided its preliminary 1Q 2011 net loss estimate for the New Zealand earthquake in the range of $35-$70 million, based on an industry insured loss estimate of $6-$12 billion… As a result, we are lowering our 2011-2013 operating EPS estimates by $2.86, $0.20, and $0.15 to $3.28, $4.95, and $4.05, respectively. Our reduced EPS estimates reflect a higher 1Q 2011 catastrophe load and lower share repurchases in 2011, and they assume no improvement in property reinsurance pricing." ACGL has an Underweight Rating and a $78.00 Price Target. ACGL closed at $95.06 yesterday.