Two of the post-September 11 Bermuda insurance start-ups, Montpelier Re Holdings and Endurance Specialty, have been given an "outperform" rating by analysts at Wachovia Securities.

The ratings, which are used as a guide by which to buy stock, were issued yesterday after both companies posted healthy first quarter results last week.

Shares of Montpelier Re, which is an insurance company, including property specialty, are currently trading at $30.50 and shares of Endurance Specialty Holdings, an insurance and reinsurance company, are currently trading at $29.05.

According to Wachovia Securities' research note, Montpelier Re and Endurance were formed after the terrorist attacks of September 11, 2001.

The analysts view this as an advantage for Montpelier as it has an "unencumbered balance sheet". It added that one of the strengths of the company was its experienced and highly regarded management team, one of the best in the industry, according to the analysts.

The analysts point out that during its first year, Montpelier generated 14 percent return on equity. The analysts expect the company to benefit from the rise in property rates globally and believe that the company has a strong future outlook.

In fact, Montpelier may enter the specialty casualty reinsurance business in 2004, say the analysts. With the company's focused strategies, the analysts expect it to yield high returns. The analysts expect the stock to trade in the range of $42 to $44 in 2003.

According to the Wachovia Securities' research note, Endurance Specialty's form is just as good. It said the company's balance sheet was also free from past encumbrances and liabilities.

According to the analysts, the company has diversified businesses and is in a position to take advantage of multiple global opportunities, focusing on both casualty and property insurance and reinsurance.

The analysts say that the company's capital management is also opportunistic, having made strategic acquisitions, without past liabilities, purchasing only renewal rights. According to the analysts, the rate increase in insurance and reinsurance also benefits the company. The analysts point out that the stock is an attractive investment at present. The analysts expect the stock to trade in the range of $39 to $41 in 2003. The analysts observe that the company has an experienced management team and a bright future outlook.