Back to top

Analyst Blog

Shares of White Mountains Insurance Group Ltd. (WTM - Snapshot Report) inched up nearly 0.4% to close at $601 on Dec 24. The gain came on the back of White Mountains’ announcement of entering into an agreement with Star & Shield Holdings LLC to acquire some of its assets and liabilities.

A wholly-owned subsidiary of White Mountains will take over Star & Shield Risk Management LLC. The financial details remain undisclosed. Nonetheless, the transaction is expected to see light in the first quarter of 2014.

Star & Shield Risk Management is the attorney-in-fact for the Star & Shield Insurance Exchange, which in turn is a reciprocal insurance exchange based in Florida. Star & Shield Insurance Exchange provides private passenger auto insurance to the public safety community’s members and their families.

With the addition of Star & Shield Risk Management, White Mountains will enhance its auto insurance business besides increasing its client base.

White Mountains, earlier, has also adopted the inorganic route to strengthen its portfolio.  In Apr 2013, White Mountains’ wholly-owned subsidiary, White Mountains Solutions Holding Company Inc. acquired American Fuji Fire and Marine insurance Company – a runoff subsidiary of American International Group (AIG - Analyst Report).

No momentum in the earnings estimate was observed in the last 30 days for White Mountains. With the news of the acquisition, we expect the estimates to be revised upwards. The Zacks Consensus Estimate for 2013 and 2014 is currently pegged at $27.90 and $23.60 respectively.

White Mountains presently sports a Zacks Rank #1 (Strong Buy). Other stocks in the property and casualty insurance space include Alleghany Corporation (Y - Snapshot Report) and Allied World Assurance Company holdings, AG (AWH - Snapshot Report). Both these stocks hold the same Zacks Rank as White Mountains.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
HI CRUSH PA… HCLP 68.05 +4.74%
CTPARTNERS… CTP 12.91 +3.12%
QIHOO 360 T… QIHU 90.56 +3.11%
HOLLYSYS AU… HOLI 22.85 +2.97%
BONANZA CRE… BCEI 61.57 +2.94%