Wunderlich Securities Provides Color on the Insurance Sector

Wunderlich Securities provided color on the insurance sector ahead of the hurricane season. Wunderlich believes the hurricane activity will be on track with the high activity in 2010. In a research report published today, Wunderlich commented on which insurance companies are best suited to withstand the hurricane season. In the report, Wunderlich states, "We believe a hurricane could be the catalyst for a pricing turn. Insurers with strong balance sheets and diversified, well-managed underwriting operations are likely to benefit from the resulting rate conditions. Under our coverage, we believe AXIS Capital Holdings Ltd. (AXS-$32.16, Buy) and Aspen Insurance Holdings Ltd. (AHL-$26.65, Buy) are the best positioned to capitalize on a rising rate environment." On Monday, Axis Capital Holdings AXS lost 1.83% to close the day at $32.16. At the same time, Aspen Insurance Holdings AHL lost 1.22% on Monday to finish the day at $26.65.