AWH  Allied World Assurance Company...

Exchange

NYSE

Sector

Finance

Industry

Property-Casualty Insurers

Market Cap.

4.66B

Current Price

$53.52
-0.17 (-0.32%)

Book Price

$47.66
Overvalued by 10.94%
Financial Institution

Company Metrics

  • P/E 18.85
  • P/S 1.82
  • P/B 1.32
  • EPS 2.84
  • Dividend 1.04 / 1.94%
  • Avg. Vol. 1.02M
  • Shares 87.07M
  • Market Cap. 4.66B

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

Why Allied World Assurance Co. Holdings, AG. Stock Is Up 12% Today
Motley Fool - Dec 19, 2016
The market is pricing Allied World Assurance shares as if the deal will go through without a hiccup. Shares of the insurer are trading at a single-digit discount to their implied value if the transaction were closed today, suggesting that investors see ...
Watsa's Fairfax Agrees to Buy Allied World for $4.9 Billion - Bloomberg
Allied World Assurance Co. Holdings Ltd.
MarketWatch - Dec 21, 2009
A.M. Best Comments on Credit Ratings of Fairfax Financial Holdings Limited Following Acquisition Announcement of Allied World Assurance Company Holdings AG. 5:01 p.m. Dec. 20, 2016. - BusinessWire - BZX. Blog Coverage Fairfax Financial to Acquire ...
Allied World Assurance Company Holdings, AG (AWH) Receives $44.33 Average PT ...
The Cerbat Gem - 8 hours ago
Allied World Assurance Company Holdings Ltd is a holding company. The Company provides property, casualty and specialty insurance and reinsurance solutions to clients around the world.
The Allied World Assurance Company Holdings, AG (AWH) Shares Bought by the ... - DailyQuint
Allied World Assurance Company Holdings, AG (NYSE:AWH) Reviewed By Analysts - The De Soto Edge
Why Allied World Assurance Co. Holdings, AG Stock Is Soaring Today
Motley Fool - Jul 20, 2016
What: Shares of Allied World Assurance Co Holdings (NYSE:AWH) are soaring by more than 13% at 11:30 a.m. EDT as the company beat analyst expectations in the second quarter.
Moody's rates Allied World Assurance senior notes at Baa1; outlook stable
Moodys.com (press release) (subscription) - Oct 27, 2015
New York, October 26, 2015 -- Moody's Investors Service has assigned a Baa1 rating to the 10-year 4.35% senior notes issued by Allied World Assurance Company Holdings, Ltd ("Bermuda Holdings") and guaranteed by the ultimate parent Allied World ...
Allied World Assurance Company Holdings, AG (AWH) Rating Lowered to Sell at ...
Sports Perspectives - Jan 26, 2017
Allied World Assurance Company Holdings, AG (NYSE:AWH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
Should You Buy Allied World Assurance Company Holdings, AG (NYSE:AWH) On ... - Fiscal Standard
Moody's affirms Allied World Assurance; outlook stable
Moodys.com (press release) (subscription) - Apr 24, 2015
The Baa1 senior debt rating for the Bermuda holding company, Allied World Assurance Company Holdings, Ltd, reflects the overall group's manageable debt leverage and expectation of ample credit support from the operations, subject to regulatory dividend ...
Allied World Assurance Company Holdings, AG (AWH) Forecasted to Earn Q1 2017 ...
Sports Perspectives - Feb 6, 2017
Allied World Assurance Company Holdings Ltd is a holding company. The Company provides property, casualty and specialty insurance and reinsurance solutions to clients around the world.
Stock Returns: Allied World Assurance Company Holdings, AG (NYSE:AWH) is ... - CML News
Revenue Update on Allied World Assurance Co Holdings AG.(NYSE:AWH) - Trade Calls
Fairfax Financial Picks Up Allied World Assurance in Christmas Bargain Hunt
Motley Fool - Dec 22, 2016
... Fairfax Financial Holdings (NASDAQOTH:FRFHF), which announced that it is acquiring Zug, Switzerland-headquartered Allied World Assurance (NYSE:AWH) in a deal that values the target at roughly $4.9 billion -- the largest acquisition in Fairfax's ...
Allied World Assurance Company Holdings, AG (AWH) is Nicholas Investment ...
Sports Perspectives - Feb 13, 2017
Allied World Assurance Company Holdings Ltd is a holding company. The Company provides property, casualty and specialty insurance and reinsurance solutions to clients around the world.
Stock Price of Allied World Assurance Company Holdings, AG (AWH) Increases 0.13% - TheFounders Daily
The Steinberg Global Asset Management Increases Position in Allied World ... - DailyQuint
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
20112012201320142015
Free Cash Flow - - - - -
divided by
Invested Capital 11.12B 12.03B 11.95B 12.42B 13.51B
Cash ROIC - - - - -

Shrinking Return on Equity over the past 5 years

AWH has been shrinking returns with capital that shareholders have invested. This is a negative sign and demonstrates that both the business and management performance are weakening over time.

AWH has generated $10.15 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 274.55M 493.01M 417.88M 490.26M 83.90M
divided by
Stockholders' Equity 3.15B 3.33B 3.52B 3.78B 3.53B
Return on Equity 8.72% 14.82% 11.87% 12.98% 2.38%

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
2006200720082009201020112012201320142015
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
2006200720082009201020112012201320142015
Retained Earnings 389.20M 820.33M 994.97M 1.70B 2.36B 2.64B 2.99B 3.18B 3.51B 3.31B
Retained Earnings Growth - 110.77% 21.29% 71.06% 38.73% 11.63% 13.26% 6.55% 10.45% -5.78%

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
2006200720082009201020112012201320142015
Net Income 442.84M 469.18M 183.64M 606.89M 665.01M 274.55M 493.01M 417.88M 490.26M 83.90M
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
2006200720082009201020112012201320142015
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
2006200720082009201020112012201320142015
Capital Expenditure - - - - - - - - - -
divided by
Net Income 442.84M 469.18M 183.64M 606.89M 665.01M 274.55M 493.01M 417.88M 490.26M 83.90M
Capital Expenditure Ratio - - - - - - - - - -

Good Dividend History over the past 10 years

AWH has distributed dividends for the past 4 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
2006200720082009201020112012201320142015
Dividend Paid 9.04M 38.05M 35.26M 36.69M 47.71M - 67.83M 47.04M 76.75M 114.10M
divided by
Shares Outstanding 57.12M 62.33M 51.15M 51.99M 49.91M 39.67M 111.21M 104.87M 99.59M 94.17M
Dividend Paid Per Share 0.16 0.61 0.69 0.71 0.96 - 0.61 0.45 0.77 1.21
Price at Year End 39.94 45.81 37.03 44.70 58.60 62.93 77.82 112.19 37.97 37.74
Dividend Yield 0.40% 1.33% 1.86% 1.58% 1.63% - 0.78% 0.40% 2.03% 3.21%

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
2006200720082009201020112012201320142015
Shares Outstanding 57.12M 62.33M 51.15M 51.99M 49.91M 39.67M 111.21M 104.87M 99.59M 94.17M
Stock Bought Back - -8.37% 21.87% -1.63% 4.17% 25.83% -64.33% 6.05% 5.30% 5.75%
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