On Feb 26, 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 fourth-quarter 2013 results.
Additionally, this property-casualty insurer delivered positive
earnings surprises in all of the last 4 quarters with an average
beat of 45.5%.
On Feb 20, Global Indemnity reported fourth-quarter 2013
operating earnings per share of 76 cents, which significantly
topped the Zacks Consensus Estimate of 31 cents. Results also
outpaced the year-ago quarter earnings of 18 cents a share.
Top-line growth of 41.3% over the prior-quarter more than
offset the hike in underwriting and operating expenses.
Additionally, a plunge in loss and loss adjusted expenses and
interest costs helped improve combined ratio to 85.5% from 106.7%
in the year-ago quarter.
An escalation in a new business, agent relationships and price
hikes are driving the core insurance and reinsurance operations,
although low interest rate environment undermines the investment
A healthy cash and capital position further strengthens the
company's outlook, as reflected by growth in book value per
share. Overall, a diversified business mix, prudent risk
management and benign catastrophe losses score well with the
investors, reflecting strong long-term growth potential.
Based on Global Indemnity's fundamental strength and capital
management, the Zacks Consensus Estimate for 2014 jumped 4.2% to
$1.25 per share in the last 7 days. Nonetheless, the estimate for
2014 remained static at $1.40 over the same period. Meanwhile, no
downward revision in estimates was witnessed for both the
Other Stocks to Consider
Apart from Global Indemnity,
American Financial Group Inc.
EMC Insurance Group Inc.
Navigators Group Inc.
) sport a comparable Zacks Rank #1.
AMER FINL GROUP (AFG): Free Stock Analysis
EMC INSURANCE (EMCI): Free Stock Analysis
GLOBAL INDEMNTY (GBLI): Get Free Report
NAVIGATORS GRP (NAVG): Free Stock Analysis
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