Allied World Assurance Company Holdings, AG
) expects to incur $165 million from catastrophe loss, pre-tax
and net of reinsurance recoverables, and reinstatement premiums
in the fourth quarter of 2012. The loss stemmed from Superstorm
Sandy, which occurred in late October.
Majority of the loss (approximately 58%) will be borne by the
Insurance segment, while the remaining will be borne by the
Reinsurance segment. Within the Insurance segment, U.S. Insurance
will incur $21 million in net loss, while International will bear
$74 million in net loss. Together, these will take the total loss
incurred by the Insurance segment to $95 million.
The company posted strong results in each of the three quarters
in 2012, due to the absence of any major catastrophes. However,
the final quarter might show a different picture due to the
impact of Hurricane Sandy. Loss modeling companies project the
amount to be approximately $25 billion.
The Zacks Consensus Estimate for the fourth quarter is 14 cents,
representing a year-over-year decline of 94%. The company
outpaced the Zacks Consensus Estimate for the last three quarter
with an average earnings surprise of approximately 77%. Further,
we believe that the solid performance in the each of the three
reported quarters will more than offset the headwinds in the
fourth quarter, thereby aiding the company post better numbers.
The Zacks Consensus Estimate for 2012 is currently pegged at
$7.25, representing a year-over-year improvement of nearly 57%.
Among the other property & casualty insurers,
Montpelier Re Holdings Ltd.
) expects pre-tax net loss of approximately $95 million from
Sandy in the fourth quarter, while
) expects loss to be approximately $380 million after tax.
XL Group plc
) loss is estimated at nearly $350 million, while
Axis Capital Holdings Limited'
) pre-tax loss is estimated at $300 million
Allied World currently carries a Zacks #3 Rank, translating into
a short term Hold rating.
ACE LIMITED (ACE): Free Stock Analysis Report
ALLIED WORLD AS (AWH): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
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