) to outperform from in-line.
Analyst Thomas Cholnoky said he clearly sees rates in the property catastrophe and property reinsurance industry rising in 2006, and he thinks the company is well positioned to leverage rate hikes. Also, any future capital raising should be modest, and not dilutive to earnings per share given very favorable market opportunities. He thinks most management and regulatory issues are now behind the company. Finally, consensus 2006 estimates may prove to be too low and the stock price valuation remains attractive.