Allied World (AWH) Hits 52-Week High on FrameWRX Launch

On Jun 25, 2015 Allied World Assurance Company Holdings, AG AWH hit a new 52-week high of $44.03 per share. The rise in share price was driven by the launch of a strong cyber security initiative by the company – FrameWRX.

Year to date, the stock has returned 15.4%. The figure is significantly above 2.1% by S&P 500.

On Jun 2, 2015 Allied World announced the launch of FrameWRX – the next generation of cyber risk assessment and mitigation services. With the help of this cyber security initiative, the company’s clients will now be able to avoid, manage and mitigate privacy and network security-related risks.

The solution includes various services like assisting clients with proactive risk assessments, rendering training and awareness, improving and customizing client policies, as well as measuring the effectiveness of their incident response processes.

Organizations remain threatened by rapidly spreading cyber attacks that spread beyond the corporate walls. With the loss of the bulk customer data putting credibility at stake, most firms are forced to shell out a major chunk of their income for scrutinizing and resolving the threat of cyber crimes. With the launch of this proactive risk management solution, Allied World is not only safeguarding its customers’ security but also ensuring their faith in the stock. FrameWRX allows clients to avail the opportunity of taking control of their data and network security.

With respect to its performance, this Zacks Rank #2 (Buy) property and casualty insurer delivered positive earnings surprises for three straight quarters, with an average beat of 48%.

Continued strong performance has enabled to company to deploy capital to enhance shareholders’ value. Earlier this month, the company’s board of directors hiked its annual dividend by 16%. This move not only instills investor confidence but also attracts potential investors. The latest hike marks an increase in the company’s annual dividend by more than 50% over the last two years. Moreover, the company bought back shares worth $50.9 million in the first quarter. With another $18 million spent during the second quarter, the company has $350 million remaining under its authorization.

Other favorably-placed property and casualty insurers include Markel Corp. MKL, State Auto Financial Corp. STFC and Endurance Specialty Holdings Ltd. ENH. All these stocks sport a Zacks Rank #1 (Strong Buy).

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