We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allied World Accepts Final Fairfax Financial Exchange Ratio
Read MoreHide Full Article
Allied World Assurance Company Holdings, AG (AWH - Free Report) has agreed to be acquired by Fairfax Financial Holdings Limited in a final exchange offer of $23.00 cash per share and 0.057937 of the latter's shares. The acquirer announced that it has received all necessary approvals to pursue the transaction.
Shares of Allied World have surged 16% since the acquisition was announced; thereby outperforming the Zacks categorized Property, Casualty and Title Insurance industry’s 4% advance.
In Dec 2016, Allied World had agreed to be acquired by Fairfax Financial for $4.9 billion in a cash-stock deal. The initial purchase consideration was split into $10.00 in cash and $44.00 in Fairfax shares. Per the agreement, the cash consideration could move as high as $30.00.
Subsequently in Mar 2017, the cash consideration was raised to $23 per share. Fairfax increased the cash portion of the purchase consideration through $1.6 billion of investments by minority co-investors in the Allied World acquisition in which Fairfax will own about 67% stake.
Thus each Allied World shareholder will receive 0.057937 of shares Fairfax Financial. Together with a special dividend of $5.00 per share, all Allied World shareholders will earn $28.00 per share into their pockets.
Allied World boasts a market-leading global property, casualty and specialty insurer and reinsurer with increasing global reach. The above transaction will enable this Zacks Rank #3 (Hold) insurer leverage Fairfax’s expertise in Canada, the U.S. and across international insurance and reinsurance markets, enhancing its portfolio in the process. The buyout will help Fairfax consolidate its global presence and diversify its group risk portfolio to emerge as a global leader in property and casualty insurance, reinsurance and investments.
Stocks to Consider
Some top-ranked property and casualty insurers are CNA Financial Corporation (CNA - Free Report) , State National Companies, Inc. and Progressive Corp. (PGR - Free Report) .
CNA Financial offers commercial P&C insurance products, primarily in the United States. The company has delivered positive surprises in three of the last four quarters with an average beat of 12.45%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Progressive provides personal and commercial property-casualty insurance, plus other specialty property-casualty insurance and related services primarily in the United States. The company has delivered positive surprises in two of the last four quarters with an average beat of 4.95%. The stock flaunts a Zacks Rank #1
State National Companies provides property and casualty insurance in the United States. The company has delivered positive surprises in two of the last four quarters with an average beat of 20.54%. The stock carries a Zacks Rank #2 (Buy).
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Allied World Accepts Final Fairfax Financial Exchange Ratio
Allied World Assurance Company Holdings, AG (AWH - Free Report) has agreed to be acquired by Fairfax Financial Holdings Limited in a final exchange offer of $23.00 cash per share and 0.057937 of the latter's shares. The acquirer announced that it has received all necessary approvals to pursue the transaction.
Shares of Allied World have surged 16% since the acquisition was announced; thereby outperforming the Zacks categorized Property, Casualty and Title Insurance industry’s 4% advance.
In Dec 2016, Allied World had agreed to be acquired by Fairfax Financial for $4.9 billion in a cash-stock deal. The initial purchase consideration was split into $10.00 in cash and $44.00 in Fairfax shares. Per the agreement, the cash consideration could move as high as $30.00.
Subsequently in Mar 2017, the cash consideration was raised to $23 per share. Fairfax increased the cash portion of the purchase consideration through $1.6 billion of investments by minority co-investors in the Allied World acquisition in which Fairfax will own about 67% stake.
Thus each Allied World shareholder will receive 0.057937 of shares Fairfax Financial. Together with a special dividend of $5.00 per share, all Allied World shareholders will earn $28.00 per share into their pockets.
Allied World boasts a market-leading global property, casualty and specialty insurer and reinsurer with increasing global reach. The above transaction will enable this Zacks Rank #3 (Hold) insurer leverage Fairfax’s expertise in Canada, the U.S. and across international insurance and reinsurance markets, enhancing its portfolio in the process. The buyout will help Fairfax consolidate its global presence and diversify its group risk portfolio to emerge as a global leader in property and casualty insurance, reinsurance and investments.
Stocks to Consider
Some top-ranked property and casualty insurers are CNA Financial Corporation (CNA - Free Report) , State National Companies, Inc. and Progressive Corp. (PGR - Free Report) .
CNA Financial offers commercial P&C insurance products, primarily in the United States. The company has delivered positive surprises in three of the last four quarters with an average beat of 12.45%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Progressive provides personal and commercial property-casualty insurance, plus other specialty property-casualty insurance and related services primarily in the United States. The company has delivered positive surprises in two of the last four quarters with an average beat of 4.95%. The stock flaunts a Zacks Rank #1
State National Companies provides property and casualty insurance in the United States. The company has delivered positive surprises in two of the last four quarters with an average beat of 20.54%. The stock carries a Zacks Rank #2 (Buy).
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>