On Aug 9, 2013, Zacks Investment Research upgraded
Global Indemnity Plc
) to a Zacks Rank #1 (Strong Buy) from a Zacks Rank #3
Why the Upgrade?
Global Indemnity has been experiencing rising earnings
estimates on the back of improved second-quarter 2013 results.
Moreover, strong performance in Wind River Re, stable reserves
and a healthy capital position have been impressive.
Additionally, this property-casualty insurer delivered positive
earnings surprises in all of the last 4 quarters with an average
beat of 65.1%.
On Aug 6, Global Indemnity reported second-quarter 2013
operating earnings per share of 27 cents, which topped the Zacks
Consensus Estimate of 22 cents. However, it fell short of the
year-ago quarter earnings of 29 cents a share.
Total revenue growth of 0.9% over the prior-quarter was driven
by higher premiums, backed by higher rates. This was partially
offset by reduced net investment income. While loss and loss
adjusted expenses declined, underwriting and operating expenses
witnessed growth. Overall, combined ratio improved to 101.2% from
103.6% in the year-ago period.
Global Indemnity is gaining traction in both specialty
insurance in the U.S. and reinsurance operations in Bermuda.
Although low interest rate environment undermines the investment
portfolio, a diversified business mix and strong capitalization
also scores well with the ratings agencies, reflecting a strong
long-term growth potential.
Based on Global Indemnity's fundamental strength and capital
management, the Zacks Consensus Estimate for 2013 jumped 5.5% to
$1.15 per share in the last 7 days. Nonetheless, the estimate for
2014 remained static at $1.20 in the last 7 days. Meanwhile, no
downward revision in estimates was witnessed for both the
Other Stocks to Consider
Apart from Global Indemnity, other outperforming insurers in
the industry include
HCI Group Inc.
EMC Insurance Group Inc.
Everest Re Ltd.
). All the stocks carry a Zacks Rank #1 (Strong Buy).
EMC INSURANCE (EMCI): Free Stock Analysis
GLOBAL INDEMNTY (GBLI): Free Stock Analysis
HCI GROUP INC (HCI): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
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