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Allied World (AWH) Braces Australian Professional Liability

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Allied World Assurance Company Holdings, AG (AWH - Free Report) recently introduced three professional liability products in Australia, thereby boosting its presence in the continent. The new offerings are Directors and Officers Liability Insurance, Architects and Engineers Professional Indemnity Insurance, and Miscellaneous Professional Indemnity Insurance.

The new products, which have a capacity of AUD $10 million, are meant for Australia-based companies. The Miscellaneous Professional Indemnity Insurance will largely cater to professional services providers, such as interior designers, management consultants, advertising agents, educational institutes, accountants, technology firms, architects, surveyors and engineers of all disciplines.

Allied World eyes a dominant position in the Professional Liability products, solutions and claims service in the Australian market. To this end, the insurer has been trying to leverage its global capabilities to boost the offerings in Australia.

Allied World has a strong insurance segment. Alongside bracing its Australian presence, the company is seeking opportunities in North America. In fact, the North American Insurance segment comprises the majority of the company’s gross premiums written. This apart, the company has being enjoying strong performance in Asia.

Nonetheless, shares of Allied World lost about 1.04% year to date, underperforming the Zacks categorized Property and Casualty Insurance industry’s gain of 6.43%. The insurer also witnessed its 2017 estimates moving south in the last 60 days. However, we believe that its strong Insurance segment, solid inorganic story and effective capital deployment will drive shares higher.



Allied World presently carries Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks from the same space include American Financial Group, Inc. (AFG - Free Report) , Everest Re Group, Ltd. and Selective Insurance Group, Inc. (SIGI - Free Report) .

American Financial offers P&C insurance products in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.45%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.    

Everest Re offers reinsurance and insurance products. The company delivered positive surprises in three of the last four quarters with an average beat of 43.49%. The company holds a Zacks Rank #2 (Buy).

Selective Insurance provides insurance products and services in the United States. The company delivered a positive surprise in one of the last four quarters but with an average negative surprise of 4.53%. The company holds a Zacks Rank #2.  

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