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ACE Limited (ACE)

- NYSE
  • Wed, Jul. 1, 12:30 PM
    • "This changes almost everything" in P&C, says KBW's Meyer Shields. "Ace (ACE +2%) is a very experienced and successful acquirer." The deal should help Ace better compete with rivals like AIG (AIG +1%) and Berkshire Hathaway (BRK.A, BRK.B).
    • Merger presentation slides
    • Unlike some other insurers focused on buybacks - including the acquired Chubb (CB +29%) - Ace and its CEO Hank Greenberg have been using capital for purchases, building scale and diversifying risk.
    • Chubb CEO John Finnegan - previously set to retire at the end of 2016 - could be in for a nine-digit golden parachute should he be let go prior to that or resigns for reasons such as a reduction in responsibility or pay. Greenberg is set to lead the combined company.
    • Previously: P&C stocks on the move after Chubb sale (July 1)
    • Previously: ACE buying Chubb in cash and stock deal for $28.3B (July 1)
    | 9 Comments
  • Wed, Jul. 1, 9:39 AM
    • ACE's (ACE +7.7%) purchase of Chubb (CB +34.8%) for $28.3B in stock and cash has the property & casualty names higher in early action.
    • Travelers (TRV +3.9%), Allstate (ALL +2.4%), Cincinnati Financial (CINF +2.2%), W.R. Berkley (WRB +3.1%), Progressive (PGR +2.3%), United Insurance (UIHC +2.2%), Hartford FInancial (HIG +3.3%).
    • Previously: ACE buying Chubb in cash and stock deal for $28.3B (July 1)
    | Comment!
  • Wed, Jul. 1, 9:18 AM
    | 5 Comments
  • Wed, Jul. 1, 7:12 AM
    • Chubb (NYSE:CB) owners will receive $62.93 per share in cash and 0.6019 shares of ACE stock for each share of Chubb they own - $124.13 per share based on ACE's closing price last night. Chubb closed at $95.14 - the stock's higher by 31.4% premarket to $125. ACE is ahead by 5.2% to $107.
    • ACE expects the purchase to be immediately accretive to EPS and book value, and by year three be accretive to EPS on a double-digit basis and accretive to ROE. The ROI should exceed ACE's cost of capital within two years, and tangible book value per share will return to its current level in three years.
    • A conference call is set for 8:30 ET.
    • Source: Press Release
    | 27 Comments
  • 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)
    | 2 Comments
  • Apr. 30, 2014, 10:42 AM
    • AXIS Capital (AXS -3.8%) is the outlier to the downside in reinsurance after Q1 operating income of $137M or $1.24 per share fell from $227M and $1.92 a year ago, and missed expectations by a wide amount. Book value per share of $47.13 rose 3% during the quarter, up 6% Y/Y.
    • Gross premiums written of $1.8B gained 4%, with insurance up 1%, reinsurance up 6%. Net premiums written up 6% to $1.7B. Net premiums earned up 8% to $946M. Combined ratio deteriorates to 91.9% from 83.0%. Accident year loss ratio of 62.1% vs. 56.4%.
    • Net investment income of $83M falls from $109M, driven by changes in the fair market value of alternative investments.
    • $179M of share repurchases during quarter.
    • Previously: Axis Capital Holdings Limited misses by $0.08, misses on revenue
    • Others reporters in the sector: ACE Limited (ACE -0.5%), RenaissanceRe (RNR -0.9%)
    | Comment!
  • Sep. 18, 2013, 12:12 PM
    • ACE, AmTrust Financial (AFSI), AllState (ALL), AON, Meadowbrook (MIG), Marsh & McLennan (MMC) are all started at Buy, while Argo Group (AGII), AIG, Maiden Holdings (MHLD), Travelers (TRV), Tower Group (TWGP), and XL Group (XL) are initiated at Hold.
    • Tower Group plummets 27% after further delaying the release of financial statements until the week of October 7, and FBR speculates the reserve charge could be as high as $125M.
    | 2 Comments
  • Jan. 29, 2013, 5:47 PM
    After-hours top gainers, as of 5:15 p.m.: UIS +12%. AMZN +8%. CHK +8%. FTNT +7%. DLB +5%.
    After-hours top losers: CIE -9%. RCL -5%. ISIS -5%. ACE -5%. GGG -4%.
    | 5 Comments
  • Apr. 24, 2012, 5:00 PM
    Ace (ACE): Q1 EPS of $2.05 beats by $0.18. Shares +1.1% AH. (PR)
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  • Jan. 31, 2012, 6:53 PM
    More on Ace (ACE): Q4 beats estimates on all counts, despite a 25% decline in revenue on higher catasrophe losses. Operating income was better, coming in at $1.94 per share. Analysts had expected operating earnings of $1.78. Shares +2.1% AH.
    | Comment!
  • Dec. 6, 2011, 4:30 PM
    ACE Limited (ACE +1.5%) finishes higher after being upgraded to Buy from Neutral at Ticonderoga, saying it's one of the best ways to play a turn in the property casualty insurance cycle.
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  • Oct. 19, 2011, 3:37 PM
    Investors prefer to focus on Travelers' (TRV +5.9%) plan to pursue targeted pricing and changes in terms and conditions rather than its 67% Y/Y profit drop, boosting shares. A multiyear streak of outsized losses from severe weather is the top factor in providing an impetus to raise rates across all its operating segments. Insurance peers: CB +2.1%, ACE +3.4%, WRB +2.6%.
    | 1 Comment
  • Sep. 8, 2011, 10:45 AM
    Commercial insurer Ace Ltd. (ACE -0.1%) buys Penn Millers Holding (PMIC +23.4%) for $107M in cash, in an effort to expand its presence in the U.S. agribusiness market.
    | Comment!
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Company Description
ACE Ltd is a Swiss-incorporated holding company and, is an insurance and reinsurance organization. It serves the property and casualty insurance needs of businesses of all sizes.