Broker snap: Amlin well-placed for 2012, says Nomura

5th Mar 2012 11:19

While Amlin's results were met with a negative reaction from the markets on Monday, Nomura has maintained its buy rating and 383p target price for the stock, saying that the group is well-positioned for 2012.The insurance and reinsurance underwriter reported a pre-tax loss of £194m for 2011, 2% below the broker's estimates, with a tangible net asset value per share of 243p, a 3% miss. However, Nomura highlighted that the firm maintained its total dividend at 23p per share."We believe the capital position of the company means it is still well placed to capitalise on the positive outlook for 2012. Meanwhile, greater reinsurance protection means lower volatility in results, and hence provides some comfort around the prospective [return on tangible equity] of 19%." the broker said.Nomura is also encouraged by the company's actions on Amlin Corporate Insurance (ACI) and this, coupled with some remaining multi-year contracts coming off the book in 2012, means that the broker is "confident management will turn the business round".BC