Wed, Apr. 1, 9:51 AM
- Started at Outperform are ACE Limited (ACE -0.6%), Arthur J. Gallagher (AJG -0.9%), Chubb (CB -0.6%), Marsh * McLennan (MMC -0.5%), and XL Group (XL -0.3%).
- Initiated at Neutral: Arch Capital (ACGL -0.3%), Progressive (PGR -0.9%), Travelers (TRV -1.1%), and Willis Group (WSH -0.8%).
- Started at Underperform: Aon Plc (AON -0.7%) and W.R. Berkley (WRB -0.7%).
Thu, Feb. 26, 1:10 PM
Tue, Jan. 27, 4:19 PM
- Q4 operating income of $2.47 per share vs. $2.39 per share one year ago. Book value per share of $90.02 down 0.4% from Q3 thanks to forex moves. Excluding currency, BVPS gained 1.6%.
- For all 2014, operating income of $8.42 per share fell from $10.92 the previous year, and book value gained 8.8% after excluding forex movements. TBVPS of $72.61 up 8.6% Y/Y after excluding forex.
- Underlying combined ratio of 90.2% vs. 89.9% one year ago.
- 3.8M shares repurchased during quarter for $430M.
- Conference call tomorrow at 8:30 ET
- Previously: ACE beats by $0.18, beats on revenue (Jan. 27)
- ACE no trades after hours
Tue, Jan. 27, 4:07 PM
Mon, Jan. 26, 5:35 PM
Mon, Jan. 26, 12:25 PM
- Lack of scale has never been the problem at Axis Capital (AXS +5.4%), say Citigroup's Todd Bault and James Kaklick. The current issue is low demand, they say, and a merger with PartnerRe (PRE +1%) won't solve that.
- Noting the merger is being done at "no premium" (presumably to book value), the two say this deal and others in the industry are acts of necessity, rather than strategic opportunities. "The pressure to cut even more costs will be enormous given the lack of significant deal premiums."
- The team reiterates its Sell rating and $46 price target on Axis.
- More on the terms: PartnerRe owners will receive 2.18 shares in the combined company for each share they own, and Axis shares will convert on a one-to-one basis.
- A check of others in the industry: ACE Limited (ACE +0.1%), XL Group (XL +0.4%), Everest Re (RE +0.7%), RenaissanceRe (RNR +0.9%), Aspen Insurance (AHL +0.9%), Arch Capital (ACGL +0.2%), Reinsurance Group of America (RGA -0.6%), Montpelier Re (MRH +0.3%), Unum Group (UNM +0.1%).
- Previously: Axis Capital to merge with PartnerRe (Jan. 26)
Wed, Jan. 14, 10:00 AM
- Upgraded to Outperform from Neutral are Arch Capital Group (ACGL +0.4%), Endurance Specialty Holdings (ENH -0.5%), and Cna Financial (CNA +0.3%). Boosted to Neutral from Underperform is Progressive Corp. (PGR -0.5%).
- Downgraded: ACE Limited (ACE -1.7%), Argo Group (AGII -1.6%), Axis Capital (AXS -1.1%), Navigators Group (NAVG -2%), Allstate (ALL -1.2%), Travelers (TRV -0.6%), and W.R. Berkley (WRB -1.8%).
Fri, Jan. 2, 8:03 AM
- Relentless rate reductions, low investment returns, and the continued influx of alternative capital face reinsurers at the Jan. 1 renewal season, according to the latest 1st View Renewals report from Willis Re (NYSE:WSH).
- Given this backdrop, says Willis, the long-expected pickup in M&A activity is now reality.
- Chairman Peter Hearn: "Many reinsurers recognize they can no longer hope for salvation through major market losses or increasing interest rates. Their only sustainable course of action is to change their business models, portfolio mixes and to strive for scale."
- Interested parties: ACE, XL, PRE, RE, RNR, AHL, ENH, AXS, ACGL, RGA, MRH, UNM, PTP.
Nov. 24, 2014, 9:21 AM
Nov. 24, 2014, 8:50 AM| Nov. 24, 2014, 8:50 AM | Comment!
Oct. 21, 2014, 5:44 PM
- After tax operating income of $891M, $2.64/share at record high
- Net premium written $4.23B up 2.2% y/y
- NII up 8.5% y/y to $566M due to an increase in the invested asset base, private equity distributions and in call activity in the corporate bond portfolio.
- Book value per share of $90.38 from $90.19 in Q2
- Operating return on equity 12.6%
- Conference call tomorrow at 8:30 ET. Webcast here.
- ACE -0.6%
- Previously: ACE beats by $0.30, beats on revenue
Oct. 21, 2014, 4:31 PM
Oct. 20, 2014, 5:35 PM
Sep. 9, 2014, 11:59 AM
- "Fierce competition, over-capacity and low returns continue to put pressure on the industry," says Moody's, reinforcing its negative outlook on the global reinsurer sector (first changed to negative in June).
- There are positive developments though, particularly a slowing in price declines. Moody's previously believed a 15-20% drop in cat prices next year a "distinct possibility," but says such a severe scenario has become less likely.
- One reason for the slowing price decline, says Moody's, is non-traditional competitors like insurance linked securities (ILS) are having a tough year and have less scope to cut pricing.
- Among the reinsurers: ACE, XL, PRE, RE, RNR, AHL, ENH. AXS, ACGL, RGA, MRH, UNM, OTCPK:SSREY, GLRE, TPRE.
Aug. 14, 2014, 10:18 AM
Jul. 22, 2014, 4:18 PM
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