why the sudden drop today?! surely good news that they are buying out wellington!

recent director buying, combined with strong trading, earnings upgrades, 5x forecast PE (before the upgrades) and a 6% yield...

with buybacks and special divis possible as the excess capital is returned

and investment returns rising from the various markets...

for the current low rating to be maintained, we could be looking at a 20% rally just to reflect the earnings upgrades

great set of results today, underwriting discipline, few claims and good cost control.

Raising the divi - to 25p; 7% + yield and going ex 16.5p on the 24th Feb.

NAV growth, should see upgrades flowing through.

also passing the trough in investment returns as bond yields rise

and with my crystal ball - the weakening El nino should encourage more buyers for storm cover in expectation of more "active" US season, so no weakening in pricing

Vague rumours of a bid approach today.

Ex-divi next wed (20th) 20p

Also Credit Suisse reduces target price from 525p to 495p and downgrades from neutral to underperform.