On Jun 30, 2014, shares of
Allied World Assurance Company Holdings, AG
) reached a new 52-week high of $38.13, after a series of positive
tidings for the company.
The stock gained 29.9% in the one-year period. Moreover, Allied
World's one-year return of 24.66% was higher than the S&P 500's
return of 22.03% and that of the other industry players like
Arch Capital Group Ltd.
XL Group plc
Platinum Underwriters Holdings Ltd.
) that recorded returns of 11.73%, 7.95% and 13.3% respectively.
Over the last couple of months, Allied World has made significant
investments toward upgrading its services and expanding its global
reach. These should drive bullish sentiment on the stock.
The company opened its branch offices in Toronto, Ontario in Apr
2014 and Sydney in May 2014. While the first move strengthens the
North American presence of Allied World, the second forms part of
expansion of the distribution network in the Asia Pacific region.
Moreover, to enhance its services, Allied World has launched a
number of products over the last few months. The U.S. subsidiary,
namely Allied World U.S. has introduced a Specified Response Vendor
Solution (SRVS) policy named Privacy//403 SRVS in Apr 2014. This
solution provides coverage for the liabilities and expenses
associated with the loss of information in case of a data
In the same month, the company launched ForceField, a suite of
management liability products in the Canadian market. Again, May
2014 saw the launch of an Onshore Construction insurance line of
business for Allied World Europe.
To address liability exposures, the company's Bermuda division
launched Thirty2°/Sixty4° the same month. Last week, Allied World,
in association with WKFC Underwriting Managers, introduced a
special event liability program.
The company's strong financial position also enabled the board of
directors to increase its annual dividend by 35% to $2.70 per share
from $2.00 per share and authorize a new $500 million share
repurchase program. Moreover, Allied World initiated a 3:1 stock
split that made the shares affordable to investors.
Earlier, the company reported first-quarter 2014 earnings that
surpassed the Zacks Consensus Estimate by 85.51%. Notably, this
Zacks Rank #3 (Hold) property and casualty insurer delivered
positive earnings surprises in three of the last four quarters with
an average beat of 45.63%.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ALLIED WORLD AS (AWH): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
ARCH CAP GP LTD (ACGL): Free Stock Analysis
PLATINUM UNDRWT (PTP): Free Stock Analysis
To read this article on Zacks.com click here.