Last week, Allied World Bermuda, the Bermuda unit of
Allied World Assurance Company Holdings, AG
), launched an excess casualty coverage package called
Constellation. The package consists of five excess casualty
coverage products combined in one.
The five coverage enhancements offered by Constellation are
Uni-Wrap, Affirmative Punitive Damages, Defense-Assistance &
Cooperation Provision, Payment of Loss Provision and Business
Uni-Wrap tackles the loopholes of the conventional policies
and provides coverage for punitive damages in the follow-form
occurrence market. Affirmative Punitive damages provide coverage
above retention. Defense Assistance & Cooperation Provision
provides drop-down, duty-to-defend after the primary
duty-to-defend is exhausted. Payment of Loss Provision recognizes
amounts paid by the insured for covered loss. Business Continuity
Protection provides policy extension when communication between
an insured and its broker or Allied World gets disrupted by a
A combination of the five enhancements captures almost all the
issues that an ideal coverage policy should consider. These
coverage services will be integrated into Allied World Bermuda's
follow-form occurrence policies. Thus it is expected to enhance
the overall follow-form business of Allied World, and add to the
existing $25 million coverage policy.
Allied World, the global provider of innovative property,
casualty and specialty insurance and reinsurance solutions,
designed Constellation to address the loopholes of the
long-established excess casualty products. Management stated
that, requests from the company's clients and brokers led to the
effort. The launch of Constellation, is aimed at providing its
customers and trading partners with developed products which will
help them to cope with the risks encountered. In turn this will
help Allied World to maintain client confidence and thus client
We expect the launch of Constellation to push up the earnings
of the company in response to improved levels of sales owing to
acquisition of new customers and retention of existing customers.
The Zacks Consensus Estimate for full year 2013 is pegged at
$7.02 representing a year-over-year improvement of 37.8%.
The initiator of Constellation, Allied World Bermuda is a
leading name in the general casualty coverage market in Bermuda.
By means of its follow-form occurrence coverage and capable
underwriters, the unit has consistently provided protection to
its clients. Through Constellation, the company intends to
improve services offered and provide a thorough and superior
protection to prospective consumers.
In order to expand its operations Allied World U.S. in a joint
venture with Alteris Insurance Services, Inc. entered into an
agreement to provide coverage to wineries in the United States
specifically in California, New York, Oregon, Texas and
Washington, last December.
Endurance Specialty Holdings Ltd.
) which closely competes with Allied World, launched a unit named
Endurance Global Weather last November, by acquiring the assets
of Galileo Weather Risk Management and appointing its entire
workforce. The new facility provides customized weather risk
management products which enable clients to cope with the adverse
effects of unpredictable weather changes on their businesses.
Allied World currently carries a Zacks Rank #3 (Hold). Endurance
shares the same Zacks Rank.
ALLIED WORLD AS (AWH): Free Stock Analysis
ENDURANCE SPLTY (ENH): Free Stock Analysis
To read this article on Zacks.com click here.