Zacks Investment Research upgraded
Aspen Insurance Holdings Ltd.
) to a Zacks Rank #1 (Strong Buy) on Dec 31, 2013.
Why the Upgrade?
Aspen Insurance witnessed upward estimate on the back of solid
results. This property and casualty insurer delivered positive
earnings surprises in 3 out of the last 4 quarters with an
average beat of 28.5%.
Over the last 30 days, estimates moved up to increase the Zacks
Consensus Estimate by 2% to $3.65 per share (representing a
year-over-year improvement of 8.3%). Over the same period the
Zacks Consensus Estimate for 2014 also increased 7.6% to $3.53.
Although the company's operating earnings per share of $1.05 in
the last reported quarter declined year over year, it exceeded
the Zacks Consensus Estimate by 31.3%. Higher-than expected net
earned premiums in the insurance segment contributed largely to
earnings in the quarter.
In Dec 2013, Aspen Capital Markets, a division of Aspen
Reinsurance (the reinsurance segment of Aspen Insurance),
established Silverton Re to provide more collateralized capacity
for strengthening the company's global reinsurance business. We
expect this endeavor to invite opportunities in alternative
reinsurance market for Aspen Insurance and also strengthen its
operational activities in capital markets.
To enhance shareholders' return, the company has also been
regular in its dividend payouts and share repurchase activities.
Aspen Insurance also scores strongly with the credit rating
Aspen Insurance is scheduled to release its fourth-quarter 2013
results on Feb 6, 2014. The Zacks Consensus Estimate for the
fourth quarter is pegged at 95 cents per share, representing an
enormous year-over-year improvement of 734.7%. Our proven model
also shows that Aspen Insurance is likely to beat earnings
because it has the right combination of positive
(+7.37%) and a favorable Zacks Rank.
Other Stocks to Consider
ASPEN INS HLDGS (AHL): Free Stock Analysis
ALLIED WORLD AS (AWH): Free Stock Analysis
CINCINNATI FINL (CINF): Free Stock Analysis
FIDELITY NAT FI (FNF): Free Stock Analysis
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Other players in the property and casualty insurance space, which
look attractive at current levels, include
Allied World Assurance Co.
Cincinnati Financial Corp.
Fidelity National Financial, Inc.
). All these stocks carry the same Zacks Rank as Aspen