On Mar 18, 2014, we issued an updated research report on
). The company had reported better-than-expected earnings results
in the last reported quarter.
ACE Limited has delivered positive earnings surprises in each of
the last four quarters, with an average beat of nearly 16%.
Moreover, this property and casualty insurer delivered robust
earnings in the fourth-quarter of 2013, which not only surpassed
the Zacks Consensus Estimate by 19.5%% but also climbed 67% on a
Solid underwriting performances aided the better-than-expected
results at ACE Limited. Absence of any significant cat activities
also boosted the upside. Premium revenues witnessed improvement
globally. It also benefited from positive prior-year reserve
development. ACE Limited also gained on account of improved
commercial property & casualty pricing environment.
ACE Limited has always considered acquisition as an efficient
strategy to boost inorganic growth and expand its global
footprint. In 2010, 2011, 2012 and the first quarter of 2013, ACE
Limited made significant acquisitions to extend its global
presence and diversify product offering.
The strong capital and liquidity position enables ACE Limited to
enhance its shareholders' value in terms of dividend payments and
share repurchase activities. It has already grown its dividend at
a 5-year CAGR of 19.4%. Additionally, the company expects to
reach a target of repurchasing $1.5 billion worth of shares in
Moreover, ACE limited is one of the largest reinsurance buyers in
the world and its risk appetite remains steady. It is benefiting
from softening reinsurance market in terms of pricing and better
terms, which is expected to further consolidate its future
However, low interest rate environment continues to weigh on net
With respect to estimate revisions, this Zacks Rank #2 (Buy)
property and casualty insurer has witnessed a positive movement.
For 2014, the Zacks Consensus Estimate moved north by 3.5% to
$8.67 per share as 11 of the 14 estimates revised upwards and for
2015, the same moved up by 2.7% to $9.11 over the last 60 days.
Other Stocks to Consider
Other top-ranked stocks worth mentioning in the property and
casualty insurance industry are
AmTrust Financial Services, Inc.
Fidelity National Financial, Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
ACE LIMITED (ACE): Free Stock Analysis Report
AMTRUST FIN SVC (AFSI): Free Stock Analysis
FIDELITY NAT FI (FNF): Free Stock Analysis
ALLEGHANY CORP (Y): Free Stock Analysis
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