ACE Limited Hits New 52-Week High - Analyst Blog
03 Avril 2013 - 1:06PM
Zacks
On Apr 2, 2013, shares of ACE Limited (ACE) hit
a 52-week high of $89.51.
ACE Limited acquired Fianzas Monterrey from New York Life Insurance
Company for a cash consideration of $293 million. This acquisition
will help the company expand its surety business. Moreover, it will
augment ACE Seguros, the existing commercial lines and personal
accident insurance business in Mexico.
Also, the U.S.-based retail operations of ACE Limited ACE USA, has
introduced a Foreign Casualty Pollution Liability coverage
endorsement. ACE came up with this coverage option to provide
insurance and risk management solutions to the globally operating
mid-sized and large-scale multinational companies located in the
U.S.A.
The board of directors of ACE Limited announced its intention to
propose a 4% increase in the quarterly dividend at the
extraordinary general meeting scheduled on May 16, 2013. If
approved, ACE Limited will pay a quarterly dividend of 51
cents.
The company has also started underwriting energy risks through
Syndicate 2488 at Lloyd’s of London.
ACE Limited delivered positive earnings surprise in all four
quarters of 2012 with an average of 9.74%. We expect the company’s
endeavors to enhance its offerings and operations coupled with
absence of any major catastrophe activities will help it deliver
solid numbers in the first quarter of 2013. ACE Limited is
scheduled to release its first-quarter 2013 earnings results on Apr
22 after the closing bell. The Zacks Consensus Estimate for the
first quarter is currently pegged at $1.85 per share.
Valuation for ACE Limited looks attractive. The shares are trading
at a discount to the peer group average both on a price-to-book
basis and on a forward price-to-earnings basis with return on
equity higher than the peer group average. The 1-year return from
the stock is 21.5%, much above S&P’s return of 11.5%.
ACE Limited presently carries a Zacks Rank # 2 (Buy). Property and
casualty insurers like AXIS Capital Holdings Ltd.
(AXS), Montpelier Re Holdings Ltd. (MRH) and
Arch Capital Group Ltd. (ACGL) among others, carry
a favorable Zacks Rank # 1 (Strong Buy) and appear impressive.
ACE LIMITED (ACE): Free Stock Analysis Report
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
AXIS CAP HLDGS (AXS): Free Stock Analysis Report
MONTPELIER RE (MRH): Free Stock Analysis Report
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