Wunderlich Securities Revises HGIC 2011 Operating EPS

Wunderlich Securities is revising its 2011 operating EPS estimate on Harleysville Group Inc. HGIC to $3.35 from $3.60. “The reduction is due to an expectation of 1Q11 winter storms,” Wunderlich Securities writes. “In addition, we believe favorable reserve development will decline in 2011 compared to 2010. 2010 had favorable reserve development of 5.8 points or $1.18 per share. 2011 should benefit from the removal of the workers' comp book of business. The combined ratio estimated for 2011 is 99.9%.” Harleysville Group closed Friday at $36.50.