) acquired Fianzas Monterrey from New York Life Insurance Company
for a cash consideration of $293 million. This acquisition,
announced in Sep 2012, will help the company expand its surety
Based in Mexico and founded in 1943, Fianzas Monterrey primarily
caters to clients in the construction and industrial sectors
offering administrative performance bonds. With three regional
offices, 25 branch offices and an extensive 600 independent
agents and brokers, Fianzas Monterrey is the second-largest
surety lines company in Mexico and the third largest in Latin
Surety business forms a part of ACE Limited's specialty property
& casualty business. Additionally, owing to the promising
economic scenario in the Mexican markets, it expects to
capitalize on the opportunities as and when they are available.
Moreover, it will augment ACE Seguros, the existing commercial
lines and personal accident insurance business in Mexico.
ACE Limited has always considered acquisition as an efficient
strategy to boost inorganic growth and expand its global
footprint. Also, acquisitions have created a turnaround in
premium writings and in turn, have helped the company deliver
better numbers, which we expect to continue going forward.
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, reflecting nearly a 10% year over year decline.
ACE Limited guided 2013 operating earnings to a band of
$6.60-$7.00 per share. The guidance includes catastrophe loss of
$450 million. The Zacks Consensus Estimate for 2013 is $7.68, up
0.5% year over year.
ACE Limited carries a Zacks Rank #2 (Buy). Property and casualty
AXIS Capital Holdings Limited
Cincinnati Financial Corp
Arch Capital Group Ltd
) carry a favorable Zacks Rank #1 (Strong Buy) and appear
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