Allied World Assurance Company

Allied World Assurance Company Holdings Ltd. (AWH - Snapshot Report) is seeing higher earnings estimates ahead of its fourth-quarter report, which is scheduled for release on February 5. Analysts are calling for year 2008 earnings of $8.01 per share, up from last month’s $7.91.

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.

Quarterly Results Reflect Growth

The company announced third-quarter results in early November. Operating income of $2.03 per share topped the year-prior $1.77 and exceeded the consensus estimate by 17%.

Management stated that Allied World fared well through the current turmoil in the financial markets due to its strong risk controls and conservative business approach. President and Chief Executive Officer Scott Carmilani said, “despite the quarter's storm activity and the severe disruption in the world's financial markets, we have delivered an annualized operating ROE of 19% year to date and have preserved our shareholders' equity at levels comparable with year end 2007. We believe our financial strength, capacity and selective risk management approach position us well to serve the needs of both our current and prospective clients."

Rewarding Shareholders

Allied World also declared a quarterly dividend of 18 cents per share, which was paid out on December 11, 2008. AWH’s dividend yield of 1.8% per is slightly higher than the industry average of 1.5%.

More Favorable Industry Comparisons

The company offers a current return on equity (ROE) of 18%, doubling the industry average of 9%. Its net profit margin of 23% is well above the industry average of 6%. Earnings per share are expected to grow 10% over the next 3 – 5 years, which is in line with the industry average of 9%.

Estimates are on the Rise

Allied World is seeing higher earnings estimates ahead of its fourth-quarter report. Analysts are calling for year 2008 earnings of $8.01 per share, up from last month’s $7.91.

The company is slated to report results for the fourth quarter on February 5.