21st Century Insurance "underperform," estimates reduced

05/08/07 - Morgan Keegan

NEW YORK, May 8 (newratings.com) - Analysts at Morgan Keegan maintain their "underperform" rating on 21st Century Insurance Group (TW), while reducing their estimates for the company.

In a research note published yesterday, the analysts mention that that the company has reported its 1Q07 operating EPS short of the estimates and the consensus. According to the analysts, 3.5% growth in the gross written premiums in the quarter was driven by 21st Century Insurance’s geographic growth outside California The EPS estimates for 2007 and 2008 have been reduced from $1.05 to $0.85 and from $1.20 to $0.95, respectively, to reflect an increase in share count due to the AIG offer and increased expense ratios related to the fast rollout of new markets.