SA Transcripts • Oct. 23, 2014
Allied World Assurance Holdings: Steady As She Goes
- AWH has upside if the macro-environment improves.
- Steady growth in book value for AWH is reassuring and the company continues to perform well.
- Any significant sell-off in the stock is a good buying opportunity right now.
Allied World Delivers A Good Underwriting Result, Spiked With Reserves And Investments
- Positive reserve developments and investment earnings boosted results well ahead of expectations.
- Core underwriting profitability was stronger than expected on good expense leverage.
- Rates are not great, particularly overseas, but Allied World should stay ahead of claims inflation and loss trends remain basically positive.
Allied World Assurance: Undervalued And Prudently Managed
Profitable Net-Net Mid Cap: Allied World Assurance
Apr. 16, 2014, 2:57 PM
- "Looking over the landscape, we do not see too many competitors that would be willing to pay a similar premium to book value," says Janney's Ryan Byrnes, commenting on Endurance Specialty Holdings' (ENH -0.3%) hostile offer of 1.16x book value for Aspen Insurance Holdings (AHL +2.9%).
- "The chance of another acquirer coming into the picture is uncertain," says Sterne Agee. "While we have seen competing offers in past insurance transactions over the last several years, the deal multiples in those instances were close to/below book value.”
- Barclays isn't so sure, saying other suitors looking to increase their scale could emerge. Possible candidates: Allied World Insurance (AWH +0.7%) and Validus Holdings (VR +0.2%) - both were involved in 2011/2012's bidding war for Transatlantic, in which Alleghany ended up buying the company in a $3.4B deal.
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