Allied World Assurance Company Holdings Ltd.

Allied World Assurance Company Holdings Ltd. (AWH - Snapshot Report) is seeing higher earnings estimates ahead of its fourth-quarter report. Analysts are forecasting earnings of $8.00 per share for 2008, up from the two months-ago level of $7.81. For 2009, analysts’ estimates of $7.20 per share advanced 7 cents in just the past week.

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.

Estimates are on the Rise

Allied World is seeing higher earnings estimates ahead of its fourth-quarter report. Analysts are forecasting earnings of $8.00 per share for 2008, up from the two months-ago level of $7.81. For 2009, analysts’ estimates of $7.20 per share advanced 7 cents in just the past week.

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

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 19%, beating the industry average of 12%. Its net profit margin of 23% is well above the industry average of 8%.