NEW YORK (TheStreet) -- Shares of Allied World Assurance Co. (AWH) are down -3.78% to $37.24 on heavy trading volume after the seller of aviation and environmental insurance reported that second quarter profit missed analysts' estimates as sales fell, Bloomberg reports.
Operating income was 76 cents a share, missing by 8 cents the average estimate of 9 analysts surveyed by Bloomberg.
Net policy sales dropped 4.7% to $553.9 million as a decline at the reinsurance unit offset gains from the U.S. and international insurance segments, the company said.
The company's second quarter net income was $151.9 million, compared with a loss of $1.9 million a year earlier that was driven by investment results, Bloomberg noted.
TheStreet Ratings team rates ALLIED WORLD ASSURANCE CO AG as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLIED WORLD ASSURANCE CO AG (AWH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."