Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Allied World Delivers A Good Underwriting Result, Spiked With Reserves And Investments

About four months ago, I pointed out Allied World Assurance (NYSE:AWH) as a high-quality specialty liability-focused insurance company that was trading a little rich for my tastes. With the stock having lagged the S&P 500 by about 6% since then, due in part to concerns about reserve strengthening in the professional healthcare liability space and overall worries about P&C insurance, now the valuation is starting to look a little more interesting.

A Big Beat On Investments And Favorable Reserves

Allied World posted a pretty eye-popping EPS beat relative to published sell-side estimates, but as is always the case with insurance companies, the devil is in the details. As with W.R. Berkley (NYSE:WRB), a large portion of...

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