Euler Hermes: Confirmation of a very challenging comparison base
SELL, Fair Value EUR70 (+2%)
At this stage, we keep our 2013/2014 estimates, our EUR70 fair value and our Sell rating. We expect FY top line to grow 4.5%, in line with the company’s expectations (3-5%), and a FY combined ratio at 78% (vs. 75% in 2012, deterioration being driven by lower run-offs). Claims frequency seems under control despite the challenging macroeconomic environment, but uncertainties remain on potential major claims and run-offs.
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