With excellent underwriting results and solid investment
this P&C insurer and reinsurer has been consistently
delivering positive earnings surprises.
Further by increasing share buybacks, this Zacks Rank #1 stock
will further enhance shareholder value.
About the Company
Founded in 2002 and based in Hamilton, Bermuda, Aspen operates
through wholly-owned subsidiaries and offices in Bermuda, France,
Germany, Ireland, Singapore, Switzerland, the United Kingdom and
the United States.
Solid Fourth Quarter Results and Improved
Aspen Insurance reported its Q4 results on February 7, 2013.
The quarter resulted in a loss of $0.15 per share, significantly
better than the Zack Consensus Estimate of a loss of $1.21 per
share, mainly due to excellent underwriting results.
Gross written premiums were $576.2 million, up 25.6% from the
previous year quarter, primarily due to a 40.2% rise in gross
written premiums in the Insurance.
In 2012, the company grew its book value per share grew by 6%
and delivered an operating ROE of 8.5%, which was very impressive
considering the impact of Superstorm Sandy and low interest rate
environment. Further, AHL expects the operating ROE to improve to
10% during 2013.
Positive Earnings Estimates Revisions
As a result of solid results and updated guidance, the Zacks
Consensus Estimate for 2013 increased to $3.11 per share, from
$2.86 per share, 90 days ago. Similarly, the consensus estimate
for the Q1 increased to $0.96 per share, from $0.84 per share, 90
The company will release its Q1 2013 results on April 24,
2013, after market close.
Aspen has delivered positive earnings surprises in all
quarters of 2012-with an average surprise of 54.32%.
Returning Cash to Shareholders
Along with the results, the company announced a new $500
million share repurchase authorization of which, it expects to
complete at least $300 million for share repurchases by the end
of 2013, assuming normal loss experience.
During Q4, Aspen repurchased over 300,000 shares totaling $10
The Bottom Line
AHL is a Zacks Rank#1 (Strong Buy) stock. It also has a
longer-term Zacks recommendation of "Outperform". Further Zacks
Industry rank of 7 out of 265 greatly increases the likelihood of
short-to-mid term outperformance.
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ASPEN INS HLDGS (AHL): Free Stock Analysis
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