Endurance Specialty Holdings Ltd.’s ENH affiliate, Endurance U.S. Insurance, recently unveiled a new Excess Casualty product for the U.S.-based transportation companies, such as mid-size trucking fleets, shuttle and van services.
The new product will cater to commercial transportation clients and will be distributed through a limited network of wholesale brokers, who excel in serving the transportation market.
From a strategic viewpoint, the product will strengthen the property and casualty (P&C) insurer’s already solid product and service portfolio. Moreover, the product will enable the company to meet clients’ demands more efficiently and effectively.
Interestingly, the in-depth knowledge of E&S Transportation’s management team about commercial transportation will benefit the P&C insurer’s organic portfolio. The E&S Excess Casualty business will gain from the experience and relationships of the management team of the former, pertaining to lower attaching transportation accounts. This, in turn, will complement the current E&S Excess Casualty business. This apart, the product will add significant and timely capability to the insurer’s product offering and has already been lauded by wholesale transportation broker partners.
We note that Endurance Specialty has been introducing several such strategic products to boost its organic portfolio. These initiatives should accelerate the company’s growth, leading to better financial results that will allow the insurer to maintain consistent performance.
Shares of Endurance Specialty have outperformed the Zacks-categorized P&C industry, year to date. Strong growth both in the bottom line and top line, solid premium improvement and robust investment income have led to the outperformance. The price performance was also backed by a positive estimate revision. The company has witnessed upward revision in its 2016 estimate over the last 30 days.
Endurance Specialty carries a Zacks Rank #4 (Sell). We expect the insurer’s strategic endeavors to boost its growth profile, which will induce positive estimate revisions, thereby exerting upward pressure on the Zacks Rank.
Stocks to Consider
Some better-ranked stocks from the same space include Alleghany Corporation Y, NMI Holdings, Inc. NMIH and Arch Capital Group Ltd. ACGL. Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany Corporation deals with P&C reinsurance and insurance businesses in the U.S. and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 20.52%.
NMI Holdings offers private mortgage guaranty insurance services in the U.S. The company delivered positive surprises in all of the last four quarters with an average beat of 62.80%.
Arch Capital offers property, casualty, and mortgage insurance and reinsurance products worldwide. It delivered positive surprises in all of the last four quarters with an average beat of 9.27%.
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