On Nov 6, Zacks Investment Research upgraded
Endurance Specialty Holdings Ltd.
) by a notch to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Endurance Specialty has been experiencing rising earnings
estimates on the back of improved market trends following its
robust third-quarter 2013 results. Moreover, strong expense
management and incremental return of capital are deemed
Additionally, this property and casualty (P&C) insurer and
reinsurer delivered positive earnings surprises in all the last 4
quarters with an average beat of 50.3%. Endurance Specialty also
outperformed the year-to-date S&P 500, which posted an
increase of 24.1% against the robust return of 40.1% clocked by
On Nov 4, Endurance Specialty reported third-quarter 2013
operating earnings per share of $1.70, which outpaced both the
Zacks Consensus Estimate of $1.11 and the year-ago quarter number
of 74 cents.
A healthy year-over-year growth in underwriting revenues and
lower expenses improved the combined ratio to 87.7% from 99.5% in
the year-ago period. A decline in loss and loss adjusted expenses
and catastrophe losses also boosted the bottom line, annualized
operating return on equity (ROE) and book value per share. These
positives were however, partially offset by lower investment
Endurance Specialty's focus on enhancing its operating
leverage by streamlining its product portfolio and improving
underwriting efficiencies is showing results. Moreover, the
company's creditworthiness, prudent risk management and effective
capital deployment score well with the ratings agencies and
Based on Endurance Specialty's fundamental strength and
prudent capital management, the Zacks Consensus Estimate for 2013
edged up 1.6% to $5.75 per share in the last 7 days. Moreover,
the estimate for 2014 rose 1.5% to $4.86 over the same period.
Furthermore, no downward revision in estimates was witnessed for
both the years.
Other Stocks to Consider
Apart from Endurance Specialty, other outperforming insurers
in the industry include
Eastern Insurance Holdings Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
EASTERN INSURNC (EIHI): Free Stock Analysis
ENDURANCE SPLTY (ENH): Free Stock Analysis
PARTNERRE LTD (PRE): Free Stock Analysis
WHITE MTN INS (WTM): Free Stock Analysis
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