UPDATE: BGB Securities Downgrades Meadowbrook Insurance to Hold, Lowers PT to $12

BGB Securities lowers its rating on Meadowbrook Insurance (NYSE: MIG) to Hold and lowers its price target to $12 as company reports lower 4Q11 earnings due to reserve adjustment and adjusts its guidance into 2012.

BGB Securities says, "The company has completed a fourth quarter review of reserves and are adjusting reserves down by $7.7M or $5.0M after tax. The company anticipates this will reduce diluted EPS for 4Q11 by $0.10 per share. The company expects full year 2011 operating income of $0.77 to $0.79 per diluted share. The loss strengthening relates to prior accident years in automobile liability, excess lines and workers' compensation. The reserve adjustment is significant as it is impacting the company's guidance for 2012 as well."

MIG closed at $11.60 a share on Wednesday.