AWH  Allied World Assurance Company...

Exchange

NYSE

Sector

Finance

Industry

Property-Casualty Insurers

Market Cap.

4.31B

Current Price

$49.24
-0.67 (-1.34%)

Book Price

$50.97
Fairly valued
Financial Institution

Company Metrics

  • P/E 16.82
  • P/S 1.7
  • P/B 1.2
  • EPS 2.93
  • Dividend 0 / 0%
  • Avg. Vol. 541,068.00
  • Shares 87.53M
  • Market Cap. 4.31B

Company Description

Allied World Assurance Company Holdings, AG operates as a specialty insurance and reinsurance company in Bermuda, Hong Kong, Ireland, Singapore, Switzerland, the United Kingdom, and the United States. It offers casualty insurance products that provide coverage for specialty type risks, such as professional liability, environmental liability, product liability, healthcare liability risks, and comme... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Allied World Assurance Company Holdings Ltd (AWH) Stake Lessened by BlackRock Inc.
The Ledger Gazette - 7 hours ago
Allied World Assurance Company Holdings logo BlackRock Inc. lessened its position in shares of Allied World Assurance Company Holdings Ltd (NYSE:AWH) by 4.0% during the 2nd quarter, according to the company in its most recent disclosure with the ...
Goldman Sachs Group Inc. Sells 96010 Shares of Allied World Assurance Company ... - TrueBlueTribune
Allied World Assurance Company Holdings Ltd (NYSE:AWH) Holdings Reduced by UBS ... - StockNewsTimes
Fairfax Financial Completes $4.9 Billion Acquisition of Allied World
Insurance Journal - Jul 6, 2017
Fairfax Financial Holdings Ltd., the Toronto-based investment and insurance company, has successfully completed its acquisition of Allied World Assurance Co. Holdings, for US$4.9 billion - marking the company's largest purchase yet. Indeed, Prem Watsa ...
Fairfax Financial Successfully Completes Acquisition of Allied World and ... - Marketwired (press release)
Fairfax completes acquisition of Allied World - Canadian Underwriter
Allied World Assurance Company Holdings Ltd (AWH) Position Raised by ...
The Ledger Gazette - Oct 19, 2017
Allied World Assurance Company Holdings logo Susquehanna International Group LLP raised its stake in shares of Allied World Assurance Company Holdings Ltd (NYSE:AWH) by 128.6% in the second quarter, according to its most recent 13F filing with the ...
Vanguard Group Inc. Decreases Stake in Allied World Assurance Company Holdings ... - Dispatch Tribunal
Parametric Portfolio Associates LLC Lowers Stake in Allied World Assurance ... - TrueBlueTribune
Allied World Announces Formation of Vault, Focused on the High Net-Worth Market
Business Wire (press release) - Oct 11, 2017
ZUG, Switzerland--(BUSINESS WIRE)--Allied World Assurance Company Holdings, GmbH and Hudson Structured Capital Management Ltd. announced today their investment in Vault, a new venture that caters to the high net-worth personal insurance market ...
Bluefin Trading LLC Takes $95.29 Million Position in Allied World Assurance ...
StockNewsTimes - Oct 17, 2017
Allied World Assurance Company Holdings logo Bluefin Trading LLC purchased a new stake in shares of Allied World Assurance Company Holdings Ltd (NYSE:AWH) in the 2nd quarter, according to its most recent filing with the Securities & Exchange ...
Allied World Assurance Company Holdings Ltd (NYSE:AWH) Shares Sold by New York ...
StockNewsTimes - Oct 18, 2017
New York State Common Retirement Fund trimmed its stake in Allied World Assurance Company Holdings Ltd (NYSE:AWH) by 3.6% in the second quarter, according to the company in its most recent disclosure with the SEC.
Allied World Assurance Company Holdings Ltd (AWH) is Alpine Global Management ... - Dispatch Tribunal
Champlain Investment Partners Has Cut Allied World Assurance Company (AWH ... - NormanObserver.com
BlackRock Inc. Sells 146499 Shares of Allied World Assurance Company Holdings ...
The Ledger Gazette - Oct 11, 2017
Allied World Assurance Company Holdings logo BlackRock Inc. cut its position in Allied World Assurance Company Holdings Ltd (NYSE:AWH) by 4.0% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor ...
UBS Asset Management Americas Inc. Decreases Position in Allied World ... - StockNewsTimes
Citigroup Inc. Boosts Position in Allied World Assurance Company Holdings Ltd ...
TrueBlueTribune - Sep 26, 2017
Allied World Assurance Company Holdings logo Citigroup Inc. increased its stake in Allied World Assurance Company Holdings Ltd (NYSE:AWH) by 48.6% during the second quarter, according to its most recent 13F filing with the Securities and Exchange ...
Artisan Partners Limited Partnership Cuts Stake in Allied World Assurance ... - Week Herald
Comparing XL Group (XL) & Allied World Assurance Company Holdings (AWH) - Dispatch Tribunal
Institutional Investors Are Selling Allied World Assurance Co Holdings AG ...
BZ Weekly - Oct 11, 2017
The ratio is negative, as 62 hedge funds opened new and increased holdings, while 103 decreased and sold their stock positions in Allied World Assurance Co Holdings AG.
Allied World Assurance Company Holdings Ltd (AWH) Position Boosted by JPMorgan ...
The Ledger Gazette - Sep 22, 2017
Allied World Assurance Company Holdings logo JPMorgan Chase & Co. boosted its stake in shares of Allied World Assurance Company Holdings Ltd (NYSE:AWH) by 12.4% during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for AWH to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate AWH's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

AWH has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

AWH has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 12.03B 11.95B 12.42B 13.51B 13.18B
Cash ROIC - - - - -

Poor Return on Equity over the past 5 years

AWH has shown an inability to deliver strong results for shareholders. This could be due to poor management, AWH operating in a highly competitive industry, or having a weak business in general.

AWH has only generated $9.85 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 493.01M 417.88M 490.26M 83.90M 255.30M
divided by
Stockholders' Equity 3.33B 3.52B 3.78B 3.53B 3.55B
Return on Equity 14.82% 11.87% 12.98% 2.38% 7.19%

Poor Business Performance over the past 10 years

AWH's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

AWH has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow - - - - - - - - - -

Consistent Reinvestment of Profits over the past 10 years

AWH has consistently retained profits. This may put AWH in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, AWH can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 820.33M 994.97M 1.70B 2.36B 2.64B 2.99B 3.18B 3.51B 3.31B 3.42B
Retained Earnings Growth - 21.29% 71.06% 38.73% 11.63% 13.26% 6.55% 10.45% -5.78% 3.27%

Highly Competitive Industry over the past 10 years

It's likely that AWH is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely AWH invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 469.18M 183.64M 606.89M 665.01M 274.55M 493.01M 417.88M 490.26M 83.90M 255.30M
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

AWH is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that AWH has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

AWH has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that AWH may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 469.18M 183.64M 606.89M 665.01M 274.55M 493.01M 417.88M 490.26M 83.90M 255.30M
Capital Expenditure Ratio - - - - - - - - - -

Good Dividend History over the past 10 years

AWH has distributed dividends for the past 5 years. Remember, the longer a company's dividend history, the more established the company might be and the more reliable the future of the dividend probably is.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 38.05M 35.26M 36.69M 47.71M - 67.83M 47.04M 76.75M 114.10M 91.50M
divided by
Shares Outstanding 62.33M 51.15M 51.99M 49.91M 39.67M 111.21M 104.87M 99.59M 94.17M 89.80M
Dividend Paid Per Share 0.61 0.69 0.71 0.96 - 0.61 0.45 0.77 1.21 1.02
Price at Year End 45.81 37.03 44.70 58.60 62.93 77.82 112.19 37.97 37.74 53.71
Dividend Yield 1.33% 1.86% 1.58% 1.63% - 0.78% 0.40% 2.03% 3.21% 1.90%

Strong History of Stock Buybacks over the past 10 years

AWH has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 62.33M 51.15M 51.99M 49.91M 39.67M 111.21M 104.87M 99.59M 94.17M 89.80M
Stock Bought Back - 21.87% -1.63% 4.17% 25.83% -64.33% 6.05% 5.30% 5.75% 4.87%
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