Global Indemnity plc
) scaled a new 52-week high of $27.78 on Jun 9, 2014 and this was
sustained till Jun 10, 2014. The company's shares have been riding
high, mainly driven by its strong first-quarter 2014 earnings.
Global Indemnity's first-quarter earnings of 39 cents per share
surpassed the Zacks Consensus Estimate and increased 14.7% year
over year. Notably, this property and casualty insurer had
previously delivered positive earnings surprises in all of the last
four quarters with an impressive average beat of 46.74%.
Following Global Indemnity's earnings release on May 5, 2014, its
shares gained 4.4% to close at $27.48 in the last trading session.
The year-to-date return from the stock was 8.61%, much above
Nasdaq's return of 3.85% and that of other players in the industry
XL Group plc
W.R. Berkley Corporation
) with returns of 4.15% and 4.25% respectively over the same
Global Indemnity has been witnessing premium growth in both its
Insurance and Reinsurance operations. The first quarter also saw an
increase in premiums in these two segments. This led to a decrease
in the expense ratio, reflecting increased profitability for the
company. Additionally, underwriting and pricing improvement led to
a better loss ratio.
At the end of the first quarter, the company's financial position
also remained robust with an increase in assets and shareholders'
equity as compared with year-end 2013. We believe that the strong
financial position of the company should enable it to execute
initiatives like acquisitions and mergers, which would help in
generating inorganic growth.
Global Indemnity currently carries a Zacks Rank #4 (Sell). However,
better-ranked players in the same industry include W.R. Berkley and
The Travelers Companies, Inc.
). Both these stocks sport a Zacks Rank #1 (Strong Buy).
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