ACE Limited Buys Penn Millers - Analyst Blog
2011年9月12日 - 9:30PM
Zacks
ACE Limited (ACE) has inked a deal to acquire
Penn Millers Holding Corporation (PMIC) for a cash
consideration of $107 million. The acquisition is expected to close
by the first
quarter of 2012 pending approvals.
Wilkes-Barre, Pennsylvania
based Penn Millers Holding Corporation, through its subsidiaries,
provides various property and casualty insurance products for
agricultural and small commercial business customers. As such, the
acquisition will enhance ACE Limited’s product offering in
agricultural market. Further, the acquisition, in the upcoming
quarters, will also help the company to write higher premiums,
which showed an impressive growth of 16% in the second
quarter.
ACE Limited
expects the acquisition to be accretive to earnings, return on
equity and book value per share.
Earlier, in
September 2010, ACE Limited acquired Johnston, Iowa, Rain and Hail
Insurance Service for $1.1 billion in cash to expand its offering
in agricultural market. ACE Limited, since 1980, continues to be
one of the leading crop insurance writers in the U.S.
ACE Limited
posted a strong second quarter with operating income of $2.01 per
share, surpassing the Zacks Consensus Estimate by 33 cents. The
better-than-expected result stemmed from higher premiums and
investment income.
In its
second quarter earnings conference call, ACE Limited announced that
it would post double-digit revenue growth in the second half of
2011. For 2011, the company raised its operating earnings
expectation to $6.00 - $6.20 per share from $5.40 - $5.70
guided earlier.
The Zacks Consensus Estimate for third-quarter 2011 is $1.79 per
share. For full years 2011 and 2012, the Zacks Consensus Estimates
are, respectively, $6.57 per share and $7.46 per share.
We maintain our Neutral recommendation on ACE Limited. The
quantitative Zacks #3 Rank (short-term 'Hold' rating) for the
company indicates no clear directional pressure on the shares over
the near term.
Headquartered in Zurich, Switzerland, ACE Limited, through its
subsidiaries, provides a range of insurance and reinsurance
products to commercial and individual customers worldwide. The
company competes with American International Group
Inc. (AIG) and The Travelers Companies
Inc. (TRV).
ACE LIMITED (ACE): Free Stock Analysis Report
AMER INTL GRP (AIG): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
Zacks Investment Research
Penn Millers Holding Corp. (MM) (NASDAQ:PMIC)
過去 株価チャート
から 5 2024 まで 6 2024
Penn Millers Holding Corp. (MM) (NASDAQ:PMIC)
過去 株価チャート
から 6 2023 まで 6 2024