HIG: Lowering estimates due to equity offering

On June 12th HIG offered 56,108,703 new shares. This caused rating agencies to lower their future estimates from the dilution. However their projected ROE is expected to increase to 8.9% in 2010. This is one of the main reasons why this stock is straddling $29. Just recently this stock has become a 'buy' from many financial intermediaries like Merrill Lynch. Therefore I project the stock to outperform the S&P500 throughout the year. I also consider all insurance companies, except AIG due to government stakes, to perform other sectors in the coming months.