On Apr 2, 2013, shares of
) hit a 52-week high of $89.51.
ACE LIMITED (ACE): Free Stock Analysis Report
ARCH CAP GP LTD (ACGL): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
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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
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
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
ACE Limited presently carries a Zacks Rank # 2 (Buy). Property
and casualty insurers like
AXIS Capital Holdings Ltd
Montpelier Re Holdings Ltd
Arch Capital Group Ltd
) among others, carry a favorable Zacks Rank # 1 (Strong Buy) and