Broker snap: UBS, Credit Suisse cut targets for Amlin

21st Nov 2011 12:55

Both UBS and Credit Suisse have cut their target prices for FTSE 250 insurance firm Amlin following the group's third quarter update last week.UBS notes that Amlin raised the estimated loss from the Japanese earthquake to $206m from $156m, while the loss from New Zealand rose by 11% to $338m. "Earthquake losses are notoriously difficult to estimate and so some movement should probably be expected. However, we expected Amlin to be more cautious after the profit warning in August," said analyst Brendan McMaster.UBS cuts its target price from 290p to 282p.Credit Suisse analyst Alex Orioff said "Underwriting profitability appears to be under further pressure from the first half losses and third quarter events, already running above second half nat-cat [natural catastrophe] budget, before Thai floods."The broker cuts its target price from 457p to 429p.However, "After underperforming European insurers and reinsurance/specialty sector year-to-date, we believe the upside potential is broadly in line with the average," Orioff said.Both brokers maintain their neutral ratings on the stock.By 12:39, shares had fallen 2.96% to 304.9p.BC