On Oct 15, 2014, Zacks Investment Research upgraded White Mountains Insurance Group, Ltd. (WTM) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
White Mountains has been witnessing rising earnings estimates on the back of a number of positive tidings at the company, which include investments, rating affirmations and a strong second-quarter 2014. The Zacks Consensus Estimate for 2014 increased 21.5% to $25.40 per share as an estimate was revised higher over the last 7 days.
Earlier this week, White Mountains acquired 63% stake in TRANZACT, an eminent provider of end-to-end customer acquisition solutions to the insurance sector for $178 million. This deal is strengthening White Mountain’s position in the market by expanding its direct-to-consumer insurance solutions.
Earlier this month, White Mountains’ issuer credit rating (:ICR) of “bbb” was reiterated by A. M. Best Company, Inc. Concurrently, the rating agency affirmed the financial strength rating (:FSR) of A (Excellent) and ICR of “a” of Atlantic Specialty Insurance Company and its three U.S. reinsured affiliates, together known as OneBeacon Insurance Group (OneBeacon). The ICRs of “bbb” and debt ratings of OneBeacon’s publicly traded parent, OneBeacon Insurance Group, Ltd. (OB) was also reiterated. White Mountains is the ultimate parent of this group. The ratings carry a stable outlook.
White Mountains reported second-quarter 2014 earnings that surpassed the Zacks Consensus Estimate by 63.4%. Notably, this well-known insurer delivered positive earnings surprises in three of the last four quarters with an average beat of 58.1%.
Other Stocks to Consider
Investors interested in the property and casualty insurance industry could also consider stocks like Alleghany Corporation (Y) and Aspen Insurance Holdings Ltd. (AHL). Both these carry the same Zacks Rank as White Mountains.
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