OneBeacon Insurance coverage: Sturdy Acquire

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On April 1, Zacks Investment Research upgraded OneBeacon Insurance coverage Group, Ltd. (OB Snapshot Report) to a Zacks Rank #1 (Strong Get) on the back of increasing earnings estimates following sound 4th-quarter 2013 outcomes announced by the company early final month.

Why the Upgrade?

OneBeacon has been witnessing an upward trend in earnings estimate revisions ever given that it reported its 4th-quarter 2013 benefits on Feb 7. The Zacks Consensus Estimate for 2014 has gone up 5.9% to $ 1.08 per share in the previous 2-month time frame. Likewise, the Zacks Consensus Estimate for the first quarter of 2014 also escalated 16.6% in excess of the exact same time frame and is currently pegged at 28 cents per share.

4th-quarter final results at OneBeacon clocked a optimistic earnings surprise of 9.one%. With this, the organization delivered positive surprises in 3 of its last 4 quarters with an average beat of 21.4%. Considering that the earnings release, shares of this home and casualty insurer has spiked virtually 12.3% to close at $ 15.46 on Mar 31.

OneBeacon’s 4th-quarter working net income of 24 cents per share beat the Zacks Consensus Estimate of 22 cents by 9.one%. The variety also surged substantially from the prior-yr quarter’s working net reduction of 13 cents a share.

The bottom-line surge was driven by enhance in revenues coupled with lower expenses. Total expenses declined on account of reduced loss and loss adjustment expenditures and policy acquisition expenditures.

On the other hand, OneBeacon is witnessing development in net written premiums across all its firms including new units. Additionally, OneBeacon Government Risks, Worldwide Marine Underwriters and OneBeacon System Group contribute considerably towards premium growth.
 
In addition, OneBeacon’s guide worth per share enhanced 5.9% yr more than 12 months to $ 11.58 per share at the end of 2013. Also, mixed ratio improved 2060 basis points to 91.3% throughout the 4th quarter. All these enhancements are reflected in much better final results at all fronts, enhanced concentrate on organization actions and disciplined underwriting.

Other Stocks to Think about

Some other best-ranked stocks really worth mentioning in the property and casualty insurance coverage industry are Alleghany Corp. (Y Snapshot Report), AmTrust Financial Solutions, Inc. (AFSI Snapshot Report) and Fidelity Nationwide Economic, Inc. (FNF Snapshot Report). All these stocks carry the very same Zacks Rank as OneBeacon.

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