Alleghany Corporation delivered first-quarter 2019 operating earnings of $9.66 per share, beating the Zacks Consensus Estimate by 32.5% on the back of higher revenues. However, the metric declined 14.1% year over year.
Operational Update
Revenues in the quarter improved 22.1% year over year to $1.9 billion, supported by solid organic growth and the buyout of Concord along with robust results in the company’s certain business lines.
Net premiums written rose 10.6% year over year to $1.4 billion, banking on a rising excess and surplus market as well as a favorable impact from two renewal rights transactions.
Net investment income came in at $123 million in the quarter under consideration, slipping 1% year over year. Negative returns from certain partnership investments and lower dividend income were mainly responsible for this downside.
Total costs and expenses escalated 28.2% to $1.7 billion.
Segment Update
Reinsurance Segment: Net premiums written improved 11.1% to $1.4 billion owing to TransRe’s purchase during the period of certain renewal rights related to a block of U.S. treaty reinsurance. However, the same was offset to an extent by a decrease in net premiums written in relation to a large whole account quota share treaty plus an effect of changes in forex rates.
The segment's underwriting profit plunged 59.5% year over year to $40 million.Also, the segment’s first-quarter combined ratio expanded 640 basis points (bps) to 96.1%%.
Insurance Segment: Net premiums written rose 8.5% year over year in this segment owing to a robust contribution from CapSpecialty and RSUI.
Underwriting profit of $44.7 million surged 39.3% year over year. The combined ratio of this reported segment contracted 360 bps to 83.4%.
Financial Update
Alleghany exited the first quarter with $778 million cash, down 25% from the figure at 2018 end.
Senior notes and other debt inched up 0.4% from the level at 2018 end.
Alleghany’s shareholder equity at the end of the first quarter increased 7.1% to $8.2 billion from the level as of Dec 31, 2018.
Book value per share was $570.09 as of Mar 31, 2019, up 8% from the level as of Dec 31, 2018.
Share Repurchase Update
In the quarter under discussion, Alleghany bought back shares worth $80.5 million. As of Mar 31, 2019, the company had $191. million remaining under its share repurchase authorization.
Zacks Rank
Alleghany carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry having reported first-quarter earnings so far, the bottom-line figures of The Travelers Companies, Inc. (TRV - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Alleghany Corporation delivered first-quarter 2019 operating earnings of $9.66 per share, beating the Zacks Consensus Estimate by 32.5% on the back of higher revenues. However, the metric declined 14.1% year over year.
Operational Update
Revenues in the quarter improved 22.1% year over year to $1.9 billion, supported by solid organic growth and the buyout of Concord along with robust results in the company’s certain business lines.
Net premiums written rose 10.6% year over year to $1.4 billion, banking on a rising excess and surplus market as well as a favorable impact from two renewal rights transactions.
Net investment income came in at $123 million in the quarter under consideration, slipping 1% year over year. Negative returns from certain partnership investments and lower dividend income were mainly responsible for this downside.
Total costs and expenses escalated 28.2% to $1.7 billion.
Segment Update
Reinsurance Segment: Net premiums written improved 11.1% to $1.4 billion owing to TransRe’s purchase during the period of certain renewal rights related to a block of U.S. treaty reinsurance. However, the same was offset to an extent by a decrease in net premiums written in relation to a large whole account quota share treaty plus an effect of changes in forex rates.
The segment's underwriting profit plunged 59.5% year over year to $40 million.Also, the segment’s first-quarter combined ratio expanded 640 basis points (bps) to 96.1%%.
Insurance Segment: Net premiums written rose 8.5% year over year in this segment owing to a robust contribution from CapSpecialty and RSUI.
Underwriting profit of $44.7 million surged 39.3% year over year. The combined ratio of this reported segment contracted 360 bps to 83.4%.
Financial Update
Alleghany exited the first quarter with $778 million cash, down 25% from the figure at 2018 end.
Senior notes and other debt inched up 0.4% from the level at 2018 end.
Alleghany’s shareholder equity at the end of the first quarter increased 7.1% to $8.2 billion from the level as of Dec 31, 2018.
Book value per share was $570.09 as of Mar 31, 2019, up 8% from the level as of Dec 31, 2018.
Share Repurchase Update
In the quarter under discussion, Alleghany bought back shares worth $80.5 million. As of Mar 31, 2019, the company had $191. million remaining under its share repurchase authorization.
Zacks Rank
Alleghany carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry having reported first-quarter earnings so far, the bottom-line figures of The Travelers Companies, Inc. (TRV - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on TRV - FREE
Get the latest research report on CINF - FREE
Get the latest research report on PGR - FREE