Barclays Maintains an 'Overweight' on ACE Ltd (ACE); Reserve Redundancy Declines

Barclays maintains an 'Overweight' on ACE Ltd (NYSE: ACE), PT $73.

Barclays analyst says, "ACE's loss reserve position appears strong to us, and ACE could continue to release reserves. ACE released $93 million pre-tax ($0.24/shr, 3.2 combined ratio points) of reserves in 1Q11. Our 2011 and 2012 full-year operating EPS estimates of $6.15 (cons=$6.18) and $7.15 (cons=$7.38) include $323 million ($0.75/share, 2.6 CR pts) and $200 million ($0.50/share, 1.5 CR pts) of reserve releases, respectively."

"ACE currently trades at an attractive level of 0.96x BV (in line with peers) vs. its historical median of 1.3x (historical range: 0.8x-2.0x) and 1.32x tangible book value."

For more ratings news on ACE Ltd click here and for the rating history of ACE Ltd click here.

Shares of ACE Ltd closed at $65.29 yesterday.

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