EPS of $5.23 beat estimates of $4.05; revenue of $7.03B matched estimates. National Bank raised its target price to $352. Combined ratio was 86.1% vs 87.1%. No significant catastrophe losses were experienced in the quarter. Underwriting performance was strong and investment contributions were stable. ROE was 16.3% vs 14.0%. Book value rose to $98.67, up 12%. Commerical lines did see pressure in 'large accounts'. Premiums in the UK did fall 5%. On the call, the main concerns were softening of commercial lines and some price weakness in the US. This seems the reason for the decline, though the stock is still up 9% YTD and up 16% over one year. We do not think the long term growth story has been impaired and we would see the dip as more of a buying opportunity.
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