On Mar 20, Zacks Investment Research upgraded Platinum
Underwriters Holdings Ltd. ( PTP ) to a Zacks Rank
#1 (Strong Buy).ARCH CAP GP LTD (ACGL): Free Stock Analysis
ReportCINCINNATI FINL (CINF): Free Stock Analysis
ReportNAVIGATORS GRP (NAVG): Free Stock Analysis
ReportPLATINUM UNDRWT (PTP): Free Stock Analysis
ReportTo read this article on Zacks.com click here.Zacks Investment
Why the Upgrade?
Platinum Underwriters witnessed rising earnings estimate on the
back of strong fourth-quarter 2012 results, which included a
positive earnings surprise of 37.31%. Moreover, this property and
casualty insurer delivered positive earnings surprises in 3 out of
4 quarters in 2012 with an average beat of 46.27%. The long-term
expected earnings growth rate for this stock is 8%.
Platinum reported its fourth-quarter results on Feb 6. Earnings
per share came in at 92 cents surpassing the Zacks Consensus
Estimate of 67 cents. Results also improved 73.6% year over year
from 53 cents in the year-ago period.
Results largely benefited from strong reserve releases and
realized gains as well as moderate catastrophe losses.
Top line improved 1.4% year over year to $185.5 million, driven by
strong improvement in net realized gains on investment (up 2470.3%
year over year).
Expenses in the fourth quarter witnessed a sharp decline of 72.1%,
attributable to an 18.5% decline in net acquisition expenses.
Combined ratio improved 7680 basis points year over year to 25.4%
in the fourth quarter.
During the fourth quarter, Platinum purchased 0.1 million shares
for $6.1 million
The Zacks Consensus Estimate for 2013 increased 3.5% to $3.15 per
share as 1 of 4 estimates was revised upward over the last 60
Other Stocks to Consider
Other property and casualty insurers like Arch Capital
Group Ltd. ( ACGL ),
Cincinnati Financial Corporation ( CINF ) and
Navigators Group Inc. ( NAVG ), carry a Zacks
Rank #1 (Strong Buy) and are worth noting.