Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Apr 2, 2013, shares of ACE Limited (ACE - Analyst Report) hit a 52-week high of $89.51.

ACE Limited acquired Fianzas Monterrey from New York Life Insurance Company for a cash consideration of $293 million. This acquisition will help the company expand its surety business. Moreover, it will augment ACE Seguros, the existing commercial lines and personal accident insurance business in Mexico.

Also, the U.S.-based retail operations of ACE Limited ACE USA, has introduced a Foreign Casualty Pollution Liability coverage endorsement. ACE came up with this coverage option to provide insurance and risk management solutions to the globally operating mid-sized and large-scale multinational companies located in the U.S.A.

The board of directors of ACE Limited announced its intention to propose a 4% increase in the quarterly dividend at the extraordinary general meeting scheduled on May 16, 2013. If approved, ACE Limited will pay a quarterly dividend of 51 cents.

The company has also started underwriting energy risks through Syndicate 2488 at Lloyd’s of London.

ACE Limited delivered positive earnings surprise in all four quarters of 2012 with an average of 9.74%. We expect the company’s endeavors to enhance its offerings and operations coupled with absence of any major catastrophe activities will help it deliver solid numbers in the first quarter of 2013. ACE Limited is scheduled to release its first-quarter 2013 earnings results on Apr 22 after the closing bell. The Zacks Consensus Estimate for the first quarter is currently pegged at $1.85 per share.

Valuation for ACE Limited looks attractive. The shares are trading at a discount to the peer group average both on a price-to-book basis and on a forward price-to-earnings basis with return on equity higher than the peer group average. The 1-year return from the stock is 21.5%, much above S&P’s return of 11.5%.   

ACE Limited presently carries a Zacks Rank # 2 (Buy). Property and casualty insurers like AXIS Capital Holdings Ltd. (AXS - Analyst Report), Montpelier Re Holdings Ltd. (MRH - Analyst Report) and Arch Capital Group Ltd. (ACGL - Snapshot Report) among others, carry a favorable Zacks Rank # 1 (Strong Buy) and appear impressive.
 

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

Learn more

Start for as little as $4.50 per trade.

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
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%