Thursday, March 10, 2016

Seeking Alpha: Aspen Insurance Trying To Defy Expectations And Tough Markets

This isn't an easy market for an insurance and reinsurance company that wants to grow, but Aspen Insurance (NYSE:AHL) continues to push a story that calls for above-average premium growth, driving above-average operating leverage. The Street still isn't buying it, as the shares are down a bit from my last article and not particularly well-loved in terms of "Buy" ratings.

It's always fair to question the compromises a company has to make to grow when its peers are struggling to do so, and that's a concern as Aspen looks to grow in a declining market. What's more, I'm a little disappointed in the company's progress with its underwriting profitability. This is still a story where growth could drive impressive performance, but I see more risk to that idea given what's going on in the sector as a whole. I've trimmed back my expectations, particularly for the next couple of years, but if the company can manage mid-single-digit cash earnings growth, a fair value in the high-$40s still makes sense.

Continue here:
Aspen Insurance Trying To Defy Expectations And Tough Markets

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