Allied World Assurance Holdings Earnings: Here’s Why the Stock is Up Now

Allied World Assurance Company Holdings Ltd. (NYSE:AWH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.19%.

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Allied World Assurance Company Holdings Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0.42% to $2.38 in the quarter versus EPS of $2.39 in the year-earlier quarter.

Revenue: Rose 19.29% to $695.05 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Allied World Assurance Company Holdings Ltd. reported adjusted EPS income of $2.38 per share. By that measure, the company beat the mean analyst estimate of $2.07. It beat the average revenue estimate of $470.2 million.

Quoting Management: President and Chief Executive Officer Scott Carmilani commented, “Allied World is off to a strong start in 2013. We produced solid underwriting and investment results, and our diversified platform continues to deliver growth across each of our segments. In U.S. insurance, our casualty business continues to grow gross premiums written amid a rising rate environment. We experienced growth across our international segment, driven by business lines including healthcare and general casualty. In our reinsurance business, we benefitted from our investment into new business lines, including crop and had a successful January 1 renewal season, constructing an attractive portfolio of business.”

Key Stats (on next page)…

Revenue increased 31.39% from $528.98 million in the previous quarter. EPS increased to $2.38 in the quarter versus EPS of $-1.58 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.88 and has not changed. For the current year, the average estimate has moved up from a profit of $7.02 to a profit of $7.35 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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