Allied World Assurance Company

Allied World Assurance Company Holdings, Ltd (AWH - Snapshot Report) is seeing bullish estimates from Wall Street ahead of its first-quarter report. Earnings forecasts for the full year are at $7.46 per share, up 4 cents from last month and 24 cents higher than the projections of 2 months ago. AWH is scheduled to report on May 7.

Company Description

Allied World Assurance Company Holdings, Ltd, provides innovative property, casualty and specialty insurance and reinsurance solutions through its subsidiaries. The global company has offices in Bermuda, the United States and Europe.

Higher Earnings Forecasts

The company is seeing bullish estimates from Wall Street ahead of its first-quarter report. Earnings forecasts for the full year are at $7.46 per share, up 4 cents from last month and 24 cents higher than the projections of 2 months ago.

Allied World is scheduled to report on May 7.

Quarterly Results Reflect Growth

The company’s fourth-quarter results included earnings per share that came in 52% ahead of the consensus estimate. Allied World’s earnings have, on average, outpaced analysts’ expectations by 20% over the past 4 consecutive quarters.

President and Chief Executive Officer Scott Carmilani commented, "Allied World has emerged from 2008 as an even stronger company despite it being a very difficult year for insurance companies and the financial sector as a whole. While not immune to the impact of the catastrophe losses for the year, we still managed to generate a very impressive 20.6% operating ROE for 2008 and ended the year with over US$2.4 billion in shareholders' equity, up 8% from year end 2007. In the fourth quarter, we achieved record operating income driven by strong investment income, favorable reserve development and a meaningful contribution from our recently acquired Darwin business."

Favorable Industry Comparisons Include Solid Income

The company offers a current return on equity (ROE) of 19%, beating the industry average of 11%. Its net profit margin of 16% is well above the industry average of 9%. Allied World’s dividend yield of 2% also tops the industry average.