Navigators Group (NASDAQ:NAVG) EPS Estimate Slashed by FBR

Navigators Group (NASDAQ:NAVG) had their EPS estimates for the fourth quarter of 2010 and full year 2010, slashed on the reserve charge.

FBR says, "Management acknowledged that the settlement of claims related to the offshore oil rig disaster could take years, but the rationale for the charge is to fully fund the reinsurance reinstatement premiums that could be triggered if the company's various marine liability policies covering these entities were to be exhausted. Management remains convinced that the marine liability claims associated with this event are contained within the company's reinsurance program and that any future exposure is limited to the reinsurance reinstatement premiums due to the company's reinsurers at the time of claims payments.

"We are decreasing our 4Q10 operating EPS estimate to $0.30 from $0.86 and lowering our 2010 estimate to $2.65 from $3.20 to account for the 4Q10 reserve charge. We are also decreasing our 2011 forecast to $3.25 from $3.30 to reflect modestly lower investment income projections."

FBR Capital reiterates a "Market Perform" on Navigators Group (NAVG), which closed Tuesday at $50.10, gaining $0.71, or 1.44 percent. FBR has a price target of $45 on Navigators.