(INDM) - United America Indemnity, Ltd - Consensus estimates for 2006 and 2007 have experienced considerable leaps over the past 30 days

United America Indemnity, Ltd. (INDM), a Zacks #1 Rank stock, topped the Street's earnings estimate in three out of the past four quarters, most recently by 14.8%. The company reported solid results for both the third quarter and first nine months of 2006. Consensus estimates for this year and next year have been on the rise. INDM has a price-to-book ratio of 0.85, compared to 5.5 for the market. Its PEG ratio currently sits at 0.86. Full Analysis United America Indemnity, Ltd., through its wholly owned subsidiaries, operates as a specialty property and casualty insurer in the United States. The company operates through two business segments: Insurance Operations, which offers two classes of insurance products: property and general liability insurance products and professional liability insurance products, and Agency Operations, which specializes in property, casualty, transportation, public entity, professional, excess and umbrella, specialty and personal lines. INDM exceeded analysts' earnings expectations in three out of the past four quarters by an average margin of 8.9%. On Oct 25, the company posted third-quarter operating income of $22.9 million, or 62 cents per share. This compares quite favorably to the $9.9 million, or 27 cents per share earned in the prior-year period. INDM surprised by a solid 14.8% with analysts calling for profits of 54 cents per share. Gross premiums written jumped 2.6% to $167.9 million, while net premiums written increased 8.0% to $145.7 million when compared to the third quarter of 2005. For the first nine months of the year, operating income increased 43.2% to $61.0 million from $42.6 million for the same period in 2005. Gross premiums written climbed 6.9% to $494.7 million and net premiums written rose 11.3% to $423.7 million. INDM's combined ratio, a measure of profitability used by insurance companies, was 90.4% in the third quarter. The measure excludes the impact of the reduction in net loss and loss adjustment expenses relating to prior accident years. The combined ratio for the third quarter of 2005 was 89.8%, excluding the impact of catastrophe losses from Hurricanes Katrina and Rita. A ratio greater than 100% means that an insurance company is paying out more money in claims than it is receiving from premiums. Consensus estimates for 2006 and 2007 have experienced considerable leaps over the past 30 days. Estimates for 2006 currently reside at $2.22 and represent an 8.3% increase when compared to the consensus a month earlier. Profit forecasts for 2007 have risen 7.5% to $2.29 over the same period of time. Earnings per share are forecasted to grow 12% over the next 3-5 years, in line with the expected growth rate of the industry. INDM is currently trading at a valuation of 10.5x trailing 12-month earnings and at 10.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 0.85, compared to 5.5 for the market. Its PEG ratio currently sits at 0.86. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home