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Broker snap: Hurricane losses prompt downgrade
Mon, 01 Dec, 2008
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Broker snap: Hurricane losses prompt downgrade
Wed, 15 Oct 2008, 09:44:00
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Related Market Prices
Name
Value
Percent
Change
Beazley Group
111.50p
+0.00%
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KBC Peel Hunt has lowered its rating on
Beazley
to 'add' from 'buy' after hurricanes on the US Gulf Coast resulted in losses of about £20m for the insurer.
However, the broker remains confident on the stock and thinks Beazley will be able to lift its 2008 dividend to 7p from 6p.
"It is almost certain that reserve releases yet to emerge this year will exceed the hurricane losses, demonstrating the efficacy of a business plan based on solid reserving," KBC said.
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