) has launched a $95 million special purpose vehicle- Altair Re,
to strengthen it global reinsurance business. The launch of
Altair Re will help the company meet the coverage requirements of
its insurance and reinsurance clients in a more efficient
The capital held within Altair Re will be deployed to
strengthen ACE Tempest Re's global property catastrophe
reinsurance business. Headquartered in Bermuda, ACE Tempest Re
Group manages the reinsurance operations of ACE Group and has
operations in Bermuda, London, Montreal, Stamford, Sao Paulo,
Zurich and Shanghai.
ACE Tempest Re has maintained profitability and conservative
underwriting for some time now. Thus, capital market investors
will invest more and benefit from ACE Tempest's consistent
performance. In turn, the additional capital will help the
company to fortify its operations in the property catastrophe
market and take advantage from the same.
Net premiums written by the global reinsurance segment of ACE
increased 4.7% year over year to $1.0 billion in 2012 and
contributed 6% of the net premiums earned in 2012. The launch of
Altair Re is expected to enhance the overall revenues of the
company further. The Zacks Consensus Estimate for the first
quarter of 2013 is currently pegged at $3.8 billion.
Product launches have diversified the company's portfolio and
served clients better. This in turn has helped the company
deliver better numbers and we expect it to continue going
forward. Towards this end the U.S. based retail operations of ACE
known as ACE USA, introduced a Foreign Casualty Pollution
Liability coverage endorsement last month. This coverage option
will provide insurance and risk management solutions to the
globally operating mid-sized and large-scale multinational
companies located in the U.S.A.
Among others in the industry,
Everest Re Group Limited
) established a new special purpose reinsurer in Bermuda - Mt.
Logan Re Ltd. in Jan 2013 to offer collateralized
capacity to the global property catastrophe
ACE currently carries a Zacks Rank #2 (Buy). Everest Re and
other insurers like
Cincinnati Financial Corp
Axis Capital holdings Limited
) carry a favorable Zacks Rank #1 (strong Buy) and are worth
ACE LIMITED (ACE): Free Stock Analysis Report
AXIS CAP HLDGS (AXS): Free Stock Analysis
CINCINNATI FINL (CINF): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
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