Broker views: Insurance and bonding solutions

05th October 2017, 14:10

Numis downgraded its recommendation on Beazley [LON:BEZ] to 'hold' from 'add' after updating its forecasts to include the insurance company's initial cost estimate for hurricanes Harvey, Irma, Maria and the Mexico earthquakes.

The broker said: "We expect Beazley to benefit from likely rate increases in the Property and reinsurance segments, albeit the earnings impact may not be apparent until 2019 due to lower reserve releases in 2018 following this year's catastrophe losses."

Analysts cut their target price by 35 pence per share to 525 pence.

Meanwhile, N+1 Singer returned to a 'buy' rating on Scapa [LON:SCPA] - from 'hold' - after attending a Capital Markets Day, which it said highlighted the transformation of the Group in recent years.

"With a defined path to 15% margins in the Industrial division and a Healthcare division which is clearly highly respected in its field with the full benefits yet to be felt, Scapa looks more than capable of justifying its rating," N+1 commented.

The broker retained its 490 pence a share target price.

About the company: Scapa supplies bonding solutions and adhesive-based products to the healthcare and industrial markets.

At 2:10pm:

[LON:BEZ] Beazley PLC share price was -4p at 481.2p

[LON:SCPA] Scapa Group PLC share price was +32p at 475.75p