Why Eastern Insurance Shares Surged

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Eastern Insurance Holdings (UNKNOWN: EIHI.DL  ) soared 16% today after specialty insurance company ProAssurance (NYSE: PRA  ) agreed to acquire the casualty insurance company for about $205 million.

So what: The all-cash deal values Eastern at $24.50 per share and represents a premium of 16% to its Monday closing price. ProAssurance is making the move to expand its workers' compensation coverage, and judging by its own stock's flat action today, Mr. Market seems OK with the price management is paying to do it.

Now what: ProAssurance expects the deal to close by the end of the year and be accretive to its 2014 earnings. "Eastern has a strong, long-term position in health care workers' compensation that will allow us to broaden the high quality products we are able to offer our existing customers," said ProAssurance Chairman and CEO W. Stancil Starnes. "Equally important is the product line diversification the transaction will provide for the combined organization." So, while Eastern is likely all popped out at this point, ProAssurance's newly bolstered coverage and diverse offerings might be worth looking into.

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2652328, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:25:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
EIHI.DL $0.00 Down +0.00 +0.00%
PRA $52.46 Down -1.00 -1.87%
ProAssurance CAPS Rating: *****