ACE Ltd

Most Recent

  • uploads///Derisking
    Company & Industry Overviews

    AIG’s Stock Benefits from De-Risking of Balance Sheet

    During the first quarter of 2015, AIG (AIG) took further actions to simplify its balance sheet and reduce risk.

    By Robert Karr
  • uploads///MA KIE
    Macroeconomic Analysis

    KIE Crossed over Its Moving Averages on November 16, Trending Up

    On November 23, shares of KIE closed at $72.38, above its 100-day, 50-day, and 20-day moving averages of $70.07, $70.06, and $71.73, respectively.

    By Rebecca Keats
  • uploads///CB ACE ACE Basics
    Miscellaneous

    Background on ACE Limited

    ACE is a leading international property and casualty insurer Headquartered in Zurich, Switzerland, ACE Limited offers commercial insurance products and service offerings such as risk management programs, loss control, and engineering and complex claims management. ACE Limited operates under five segments: North American Property and Casualty, North American Agriculture, Insurance–General Overseas, Global Reinsurance, and Life. North […]

    By Brent Nyitray, CFA, MBA
  • uploads///
    Earnings Report

    AIG’s Commercial Insurance segment sees increased income

    AIG’s top line dipped marginally in 4Q14 when compared to 4Q13, driven by disciplined sales and underwriting in casualty products in commercial P&C.

    By Sean Millard
  • uploads///
    Earnings Report

    AIG improves its capital structure in 4Q14

    AIG repurchased $6.5 billion of high coupon debt, replacing it with lower coupon debt to help AIG reduce its interest burden by ~$249 million per year.

    By Sean Millard
  • uploads///Commercial Insurance
    Company & Industry Overviews

    AIG’s Commercial Insurance Business Improves in 1Q15

    AIG (AIG) reported pre-tax operating income of $1.5 billion in 1Q15 for its commercial insurance business, as compared to $1.4 billion in 1Q14.

    By Robert Karr
  • uploads///Commercial
    Earnings Report

    Progressive’s Commercial Lines Expand on Transport Sector in 3Q15

    Progressive’s (PGR) Commercial Lines business revenues increased by 12.1% to $511 million in 3Q15, up from $456 million in 3Q14.

    By Robert Karr
  • uploads///
    Earnings Report

    Gauging AIG’s stock performance and valuation

    AIG’s shares appear to be currently undervalued despite the improvements in its operating and financial metrics.

    By Sean Millard
  • uploads///Valuation
    Earnings Report

    Prudential Financial’s Valuations Rise, Still Trade at a Discount

    Prudential Financial’s shares appear to be currently undervalued despite the improvements in its overall fundamentals.

    By Robert Karr
  • uploads///FDI Trukey Russia
    Miscellaneous

    Russia’s Plane Shot Down: Insurers Gain as Tensions Mount

    Geopolitical tensions are mounting around the globe. Turkey shot down a Russian jet and Brussels remains on terrorism alert after the recent attacks in Paris.

    By Rebecca Keats
  • uploads///
    Basic Materials

    Underwriting profit: First leg of the profit machine

    An underwriting loss is not unusual for an insurance company. In a soft pricing environment, pricing of P&C products is low due to intense competition.

    By Sean Millard
  • uploads///
    Consumer

    How cost structures and distribution channels impact profit

    As customers use Internet-based aggregators to purchase insurance policies, insurers use online sales to interact directly with customers and reduce costs.

    By Sean Millard
  • uploads///
    Energy & Utilities

    How investment income drives profit

    The impact of interest rate movements is lower in the P&C segment, as their products can be repriced annually to keep in line with interest rate movements.

    By Sean Millard
  • uploads///
    Energy & Utilities

    How key drivers impact insurance sales

    For P&C insurers such as AIG and ACE, various mandatory requirements may drive sales of vehicle, workers’ compensation, and homeowners insurance.

    By Sean Millard
  • uploads///
    Energy & Utilities

    Life insurance, P&C insurance, and reinsurance

    P&C products have commoditized characteristics, resulting in sharp competition in the market and business cycles. AIG and ACE are key players in this space.

    By Sean Millard
  • uploads///
    Financials

    Making sense of an insurer’s liabilities

    Policyholder liabilities, or policyholder reserves, represent the future claims that may arise for the pool of policies the insurer writes.

    By Sean Millard
  • uploads///
    Financials

    How valuation of insurance companies works

    Financial market movements not only impact income from invested assets, but also the value of assets carried at fair value on an insurer’s balance sheet.

    By Sean Millard
  • uploads///
    Financials

    Why should you invest in insurance ETFs?

    Insurance ETFs are poised to gain from industry growth. As interest rates improve, insurers should see better earnings due to higher investment returns.

    By Sean Millard
  • uploads///Dividend
    Company & Industry Overviews

    Prudential Rewarded Shareholders with $930 Million in 3Q16

    In 3Q16, the company returned $930.0 million to shareholders in the form of dividends and buybacks.

    By Robert Karr
  • uploads///Valuations
    Earnings Report

    Prudential’s Valuations Are Weak on 2Q16 Operating Performance

    Prudential’s stock has risen by 16% in the past six months, mainly due to expectations of improved fundamentals and higher investment and underwriting income.

    By Robert Karr
  • uploads///Financial payout
    Earnings Report

    Prudential Returns $700 Million in Payouts to Shareholders

    Prudential Financial has been very consistent with dividend payouts to shareholders, which makes it a very strong prospect for long-term value investors.

    By Robert Karr
  • uploads///Estimates
    Earnings Report

    Prudential Saw a Fall in 2Q16 on Lower US Sales

    Prudential Financial (PRU) reported its 2Q16 earnings results on August 3, 2016. It reported adjusted operating income per share of $1.84 in the quarter.

    By Robert Karr
  • uploads///Payouts
    Company & Industry Overviews

    Prudential Remains Prudent on Returning Capital to Shareholders

    Prudential Financial (PRU) has been very consistent with dividend payouts to shareholders, which makes the stock a very strong prospect for long-term value investors.

    By Robert Karr
  • uploads///Hits and misses
    Company & Industry Overviews

    Is Prudential Financial on the Road to Recovery in 2016?

    In 1Q16, Prudential’s revenues fell 4.4% year-over-year to $11.3 billion. On a constant dollar basis, the company saw a decline in its international insurance and US retirement solutions businesses.

    By Robert Karr
  • uploads///Dividend payout
    Company & Industry Overviews

    How Prudential Has Boosted Shareholder Payout

    Since 2010, Prudential Financial (PRU) has returned approximately $10 billion to shareholders in the form of dividends and buybacks.

    By Robert Karr
  • uploads///US Individual
    Company & Industry Overviews

    Prudential’s US Individual Division to Benefit from Lower Charges

    Prudential Financial’s (PRU) US Individual Life and Group Insurance division saw a fall in operating income on lower group insurance revenues.

    By Robert Karr
  • uploads///Capital structure
    Macroeconomic Analysis

    How’s AIG Doing in Its Simplification Process?

    In 2015, AIG continued its simplification process for its balance sheet. In 2016, AIG is expected to strengthen its balance sheet with higher operating cash flows.

    By Robert Karr
  • uploads///Commercial insurance
    Macroeconomic Analysis

    AIG’s Commercial Insurance: Will It Post a Profit in 1Q16?

    AIG reported a pre-tax operating loss of $2.1 billion for its commercial insurance business in 4Q15 compared to a pre-tax operating income of $1.2 billion in 4Q14.

    By Robert Karr
  • uploads///International insurance
    Company & Industry Overviews

    Strong Dollar Continues to Impact Prudential Internationally

    On a constant dollar basis, Prudential Financial’s (PRU) International Insurance segment reported a 7% rise in revenues in 4Q15.

    By Robert Karr
  • uploads///Operating efficiency
    Macroeconomic Analysis

    Could Icahn and Citi Be Suggesting an AIG Sale?

    As AIG continues to decline, there are suggestions as well as speculation of an AIG sale. These speculations, although they seem unlikely to happen, can push AIG’s stock prices.

    By Robert Karr
  • uploads///Repurchase
    Macroeconomic Analysis

    The Rationale behind AIG’s Heavy Repurchases

    In 4Q15, AIG repurchased 53 million shares for an aggregate purchase price of $3.2 billion. It made additional repurchases of $2.5 billion through the end of February 11, 2016.

    By Robert Karr
  • uploads///MA KIE
    Miscellaneous

    KIE Trades above Its Moving Averages: How Does SPY Compare?

    KIE is the most liquid insurance ETF available in the country and is also among the cheapest, with an expense ratio of 0.35%.

    By Rebecca Keats
  • uploads///Stock
    Company & Industry Overviews

    Prudential Financial Expected to See Higher Profits in 1Q16

    Prudential Financial’s (PRU) stock has risen by 7% in the past month and has fallen by 13% in the past quarter.

    By Robert Karr
  • uploads///Stock
    Macroeconomic Analysis

    AIG Expected to Post Improved Operating Performance in 1Q16

    AIG is expected to report EPS of $1.08 compared to operating loss per share of $1.10 in the December quarter. The company is looking to exit its hedge funds and continue stock buybacks.

    By Robert Karr
  • uploads///KIE vs treasuries
    Macroeconomic Analysis

    The Effect of an Interest Rate Reversal on Insurance Companies

    Interest rates are a key performance driver for life insurance companies. They affect their margins, hedging costs, and product sales.

    By Rebecca Keats
  • uploads///Operating efficiency
    Earnings Report

    What AIG Is Suggesting as an Alternative to Icahn’s Proposal

    American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives for organizational simplification, operational efficiency, and business rationalization.

    By Robert Karr
  • uploads///Stock
    Earnings Report

    AIG Plans Hedge Fund Exits and Buybacks amid 4Q15 Losses

    With an operating loss per share of $1.10, AIG missed Wall Street analysts’ loss per share estimates of $0.91.

    By Robert Karr
  • uploads///Valuations
    Company & Industry Overviews

    Prudential’s Valuations Fall amid Weakening Economy and Industry

    Prudential is trading at 7.2x compared to the industry’s 8.8x earnings multiple for the same period. The stock is currently trading at multiyear low valuations.

    By Robert Karr
  • uploads///Stock
    Company & Industry Overviews

    Prudential Financial Could Post Higher Earnings in 4Q15

    Prudential Financial’s stock is currently trading at a price-to-earnings multiple of 9.9x as compared to the 12x–14x ratios of other major insurance players.

    By Robert Karr
  • uploads///Chart
    Macroeconomic Analysis

    McGraw Hill Financial Surged 2.6% as Financial Services Rebounded

    McGraw Hill Financial (MHFI) traded at $100, which was above its moving average values.

    By Renee Blakely
  • uploads///Valuations
    Macroeconomic Analysis

    Strong Operating Performance, Lower Valuations Expand ACE

    ACE stock returned ~15% to investors over the past three months. It focuses on serving retail and corporate clients in insurance and reinsurance products.

    By Robert Karr
  • uploads///ETF
    Macroeconomic Analysis

    Rising Interest Rates, Banks, and Insurance Companies

    Banking stocks are expected to benefit from higher interest rates, but not immediately. Also, rising interest rates would be countered by higher existing liquidity.

    By Robert Karr
  • uploads///KIE MA
    Company & Industry Overviews

    KIE Is Trending Upward after Crossing Its Moving Averages

    On November 25, 2015, KIE closed at $72.23, above its 100-day, 50-day, and 20-day moving averages of $70.07, $70.06, and $71.73, respectively.

    By Rebecca Keats
  • uploads///Capital structure
    Macroeconomic Analysis

    AIG’s Balance Sheet Stayed Strong with Moderate Leverage in 3Q15

    AIG’s leverage was on the lower side of the target range, according to its management. AIG’s operating return on equity stood at 2.9% for 3Q15.

    By Robert Karr
  • uploads///Commercial
    Macroeconomic Analysis

    AIG’s Commercial Insurance Was Impacted by China’s Business

    American International Group reported pre-tax operating income of $815 million for its commercial insurance business in 3Q15.

    By Robert Karr
  • uploads///International
    Earnings Report

    Prudential’s International Insurance Falls on Strong Dollar

    Prudential Financial’s international insurance segment reported a fall in its adjusted operating income to $812 million, compared to $845 million in 3Q14.

    By Robert Karr
  • uploads///Screen Shot    at
    Earnings Report

    Prudential Financial Sees Lower Underwriting and Benefits

    Prudential Financial reported its 3Q15 earnings on November 4. It missed Wall Street analysts’ adjusted operating income estimates of $2.42 per share.

    By Robert Karr
  • uploads///article
    Macroeconomic Analysis

    The Hartford Capital Appreciation Fund: What You Need to know

    The top invested sectors of the Hartford Capital Appreciation – Class A fund are information technology, healthcare, and consumer discretionary.

    By Seth Bennett
  • uploads///Life
    Earnings Report

    ACE Life Segment Fell on Lower 3Q15 Accident and Health Business

    ACE’s Life reinsurance business also fell, reflecting the run-off of the company’s variable annuity reinsurance business.

    By Robert Karr
  • uploads///Reinssurance
    Earnings Report

    ACE Global Reinsurance Benefited from Lower Claims in 3Q15

    ACE’s (ACE) Global Reinsurance segment reported a decline in net premiums written of 11.5% or 9.5% on a constant dollar basis.

    By Robert Karr
  • uploads///PGR valuation
    Earnings Report

    How Progressive Commands Premium Valuations on Higher Margins

    Progressive (PGR) reported 3Q15 earnings per share of $0.47, a 6% decrease over the third quarter of 2015.

    By Robert Karr
  • uploads///PGR
    Earnings Report

    Why Progressive’s Stock Price Rose on 3Q15 Earnings

    Progressive (PGR) reported its third-quarter earnings on October 16. It reported net income of $278 million for the quarter, down 6%.

    By Robert Karr
  • uploads///Stock
    Earnings Report

    Prudential Financial’s 2Q15 Earnings Beat Estimates

    Prudential Financial’s 2Q15 revenue rose by 12% year-over-year to $12.5 billion, exceeding consensus estimates of $11.2 billion. Its net income was $1.4 billion, up by 29% compared with 2Q14.

    By Robert Karr
  • uploads///Derisking
    Earnings Report

    AIG’s Stock Benefits from De-Risking Its Balance Sheet

    During 2Q15, AIG worked to simplify its balance sheet and reduce risk. Its exposure to super senior corporate debt and collateralized loan obligations was reduced to zero, compared with $2.5 billion as of December 31, 2014.

    By Robert Karr
  • uploads///Capital Structure
    Earnings Report

    AIG’s Balance Sheet Remains Strong with Moderate Leverage

    AIG’s leverage was on the lower side of the target range, and its operating return on equity stood at 9.3% for 2Q15. Normalized return on equity was at 6.7%.

    By Robert Karr
  • uploads///Repurchases
    Earnings Report

    AIG Rewards Shareholders through Dividends and Repurchases

    AIG declared an increase of 124% in its quarterly dividend to $0.28 per share, translating into an annualized dividend yield of 1.80%.

    By Robert Karr
  • uploads///Stock
    Earnings Report

    AIG’s 2Q15 Earnings Top Estimates Driven by Investments

    AIG reported its 2Q15 earnings on August 3. AIG posted earnings per share of $1.39, beating estimates of $1.22.

    By Robert Karr
  • uploads///th largest by operating income
    Miscellaneous

    How ACE Shareholders Will Benefit from Chubb Acquisition

    Accretion of earnings per share ACE (ACE) will benefit immediately from the transaction with Chubb (CB). The acquisition will be accretive to the company’s per-share earnings and book value per share. Accretion to EPS (earnings per share) will be in the double digits, and there will be accretion to ROE (return on equity) by the end of […]

    By Robert Karr
  • uploads///Diversification
    Miscellaneous

    ACE and Chubb Possess Complementary Strengths

    ACE has substantial international operations, with a presence in 54 countries. In contrast, Chubb has a more US-centric model.

    By Robert Karr
  • uploads///CB ACE Transaction Highlights
    Miscellaneous

    Parsing the Chubb–ACE MAE Clause, Part 2

    Pretty much anything that has a material adverse effect on the company will be considered a MAE, but there are exceptions to that rule.

    By Brent Nyitray, CFA, MBA
  • uploads///CB ACE CB Basics
    Miscellaneous

    Background on Chubb

    Chubb’s Property and Casualty Group consists of several domestic and international subsidiaries. It offers personal insurance, standard commercial insurance, and specialty commercial insurance.

    By Brent Nyitray, CFA, MBA
  • uploads///CB ACE Strategic Rationale
    Miscellaneous

    What Is the Rationale for the ACE–Chubb Merger?

    The biggest rationale for the ACE–Chubb merger is the potential for cost-cutting. By combining with Chubb, ACE Limited is creating a leading player in property and casualty insurance.

    By Brent Nyitray, CFA, MBA
  • uploads///CB ACE Transaction Highlights
    Miscellaneous

    Basics of the ACE–Chubb Merger

    ACE Limited is buying Chubb in a cash and stock merger worth ~$28 billion. The Chubb merger is expected to close in the first quarter of 2016.

    By Brent Nyitray, CFA, MBA
  • uploads///Contribution to combined company
    Miscellaneous

    ACE–Chubb: The US Insurance Industry’s Biggest-Ever Acquisition

    The ACE–Chubb deal will create the second-largest listed property and casualty insurer, by market capitalization, in the US.

    By Robert Karr
  • uploads///Largest PC
    Miscellaneous

    ACE to Acquire Chubb: The Strength of a Healthy Balance Sheet

    With the acquisition of Chubb, ACE will be better positioned to compete with rivals including Warren Buffett’s Berkshire Hathaway and Allstate, among others.

    By Robert Karr
  • uploads///P
    Miscellaneous

    Ace Merges with Chubb to Create Insurance Giant

    Shares of Chubb Group (CB) surged by 26.12% on July 1 on news of an acquisition by global property giant Ace (ACE).

    By Rebecca Keats
  • uploads///eacafeebee
    Company & Industry Overviews

    Insurance Stocks on Fire Last Wednesday

    The Financial Sector Select SPDR ETF (XLF) was up 1.52% during the trading session ending on July 1, largely driven by insurance stocks, which rose 2.7%.

    By Rebecca Keats
  • uploads///Stock performance
    Company & Industry Overviews

    AIG Advances on Risk Reduction and Balance Sheet Simplification

    As of June 2015, AIG’s stock has appreciated by about 12% over the past six months and by 11% over the last year.

    By Robert Karr
  • uploads///
    Macroeconomic Analysis

    February 2015 Catastrophe Losses

    February 2015 catastrophe losses came about due to winter weather, floods, and storms.

    By Sean Millard
  • uploads///
    Macroeconomic Analysis

    A Closer Look at the Costliest Catastrophes

    Hurricanes Sandy, Ike, and Andrew remain near the top of the list of the costliest catastrophes in terms of insured losses.

    By Sean Millard
  • uploads///
    Macroeconomic Analysis

    Making Sense of Economic and Insured Losses

    Insured losses are the ones that impact the profitability of insurance companies.

    By Sean Millard
  • uploads///
    Macroeconomic Analysis

    How Catastrophes Impact a P&C Insurer’s Combined Ratio

    The percentage points for catastrophe losses in the combined ratio have increased in recent years.

    By Sean Millard
  • uploads///
    Macroeconomic Analysis

    Catastrophe Losses and Profitability of P&C Insurers

    Catastrophe losses are one of the key risks to P&C insurers because these losses negatively impact profitability and capital.

    By Sean Millard
  • uploads///
    Earnings Report

    AIG’s commercial P&C business sees improved underwriting results

    The combined ratio of AIG’s commercial P&C business improved in 4Q14, when compared with the 4Q13 ratio.

    By Sean Millard
  • uploads///
    Macroeconomic Analysis

    Personal Lines Rates Were Up 2% in February

    The US personal lines businesses have seen improved profitability from the 2011 levels.

    By Sean Millard
  • uploads///
    Macroeconomic Analysis

    How Underwriting Cycles Impact the Top Line and the Bottom Line

    The underwriting cycle moves between hard and soft market conditions, which have different sets of characteristics that determine the profitability of the insurance industry.

    By Sean Millard
  • uploads///
    Macroeconomic Analysis

    The Underwriting Profits of a Property and Casualty Insurer

    The property and casualty insurance business is cyclical in nature. The underwriting cycle alternates between two phases: the hard market and the soft market.

    By Sean Millard
  • uploads///
    Earnings Report

    Reserve strengthening impacted AIG’s earnings negatively in 4Q14

    In 4Q14, AIG’s operating income after tax was impacted by a charge of more than $500 million for reserve strengthening and other estimate changes.

    By Sean Millard
  • uploads///
    Earnings Report

    AIG delivers on its financial objectives

    AIG’s financial objectives focus on profitability improvement, expense management, and balance sheet growth, achieving a sustainable ROE.

    By Sean Millard
  • uploads///
    Earnings Report

    AIG’s net income down in 4Q14, insurance operations earnings flat

    AIG reported a net income dip from $2.0 billion in 4Q13 to $655 million in 4Q14, due to an after-tax charge of ~$800 million for debt retirement activities.

    By Sean Millard
  • uploads///
    Company & Industry Overviews

    MetLife’s emerging market strategy fostering growth

    From 2011–2013, MetLife’s emerging market businesses saw 11% cumulative annual growth rate in operating earnings. EMEA’s growth rate was 16.1%.

    By Sean Millard
  • uploads///
    Company & Industry Overviews

    MetLife is the largest player in Latin America

    MetLife plans to grow its retail and group business in Latin America, capitalizing on the growing middle class, affluent class, and corporate needs.

    By Sean Millard
    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.