Analyzing Aspen Insurance Holdings Limited (AHL) and Partnerre (PRE)

Aspen Insurance Holdings Limited (NYSE: AHL) and Partnerre (NYSE:PRE) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Aspen Insurance Holdings Limited and Partnerre’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aspen Insurance Holdings Limited 7.66% 3.84% 1.16%
Partnerre -14.76% -11.13% -2.58%

Earnings & Valuation

This table compares Aspen Insurance Holdings Limited and Partnerre’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aspen Insurance Holdings Limited $2.68 billion 0.93 $310.20 million $2.42 17.15
Partnerre N/A N/A N/A N/A N/A

Aspen Insurance Holdings Limited has higher revenue and earnings than Partnerre.

Institutional & Insider Ownership

91.9% of Aspen Insurance Holdings Limited shares are held by institutional investors. 1.3% of Aspen Insurance Holdings Limited shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Aspen Insurance Holdings Limited pays an annual dividend of $0.96 per share and has a dividend yield of 2.3%. Partnerre does not pay a dividend. Aspen Insurance Holdings Limited pays out 39.7% of its earnings in the form of a dividend. Aspen Insurance Holdings Limited has raised its dividend for 5 consecutive years and Partnerre has raised its dividend for 14 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Aspen Insurance Holdings Limited and Partnerre, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aspen Insurance Holdings Limited 0 2 1 0 2.33
Partnerre 0 0 0 0 N/A

Aspen Insurance Holdings Limited presently has a consensus target price of $49.33, suggesting a potential upside of 18.88%. Given Aspen Insurance Holdings Limited’s higher probable upside, equities analysts clearly believe Aspen Insurance Holdings Limited is more favorable than Partnerre.

Summary

Aspen Insurance Holdings Limited beats Partnerre on 9 of the 12 factors compared between the two stocks.

About Aspen Insurance Holdings Limited

Aspen Insurance Holdings Limited is a holding company. The Company underwrites specialty insurance and reinsurance on a global basis. It manages its business as two business segments: Aspen Insurance and Aspen Reinsurance (Aspen Re). The reinsurance segment consists of property catastrophe reinsurance (including the business written through Aspen Capital Markets), other property reinsurance (risk excess, pro rata and facultative), casualty reinsurance (U.S. treaty, international treaty and global facultative) and specialty reinsurance (credit and surety, agriculture insurance and reinsurance, marine, aviation, terrorism, engineering and other specialty lines). The insurance segment consists of property and casualty insurance; marine, aviation and energy insurance, and financial and professional lines insurance. Aspen Re participates in alternative reinsurance market through Aspen Capital Markets, which is part of property catastrophe reinsurance line of business.

About Partnerre

PartnerRe Ltd. is the holding company engaged in the international reinsurance and insurance business. The Company operates in three segments: Non-life, Life and Health, and Corporate and Other. The Non-life segment’s operations are classified as North America, Global (Non-U.S.) Property and Casualty (Global (Non-U.S.) P&C), Global Specialty and Catastrophe. The Company’s Life and Health segment includes the mortality, longevity and accident and health lines of business. The Corporate and Other segment is engaged in investment related activities. Risks reinsured by the Company include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines, mortality, longevity, accident and health, and alternative risk products. The Company’s alternative risk products include weather and credit protection to financial, industrial and service companies.

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