Shares in Catlin fell sharply this morning after the announcement that the insurer was to buy Wellington Underwriting.
Shortly after the acceptance of the deal, which will make Catlin the largest underwriting operation at Lloyd's, the shares fell over 15p to 493p.
However, broker Seymour Pierce, starting new coverage on the insurer, rated it "outperform", in expectation that it will beat the market return.
Meanwhile, Wellington was up 5.5p on the news to 117p.
