We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
XL Group (XL) Poised for Growth Despite Higher Cat Loss
Read MoreHide Full Article
On Aug 16, 2016, we issued an updated research report on XL Group plc .
XL Group’s second-quarter 2016 earnings outpaced the Zacks Consensus Estimate but deteriorated year over year due to escalating expenses and higher catastrophe losses.
XL Group remains focused on its insurance and reinsurance business lines that provide the best return on capital over the pricing cycle. To refine its business mix, XL Group is deploying capital in businesses with lower loss ratios, which in turn is helping in margin expansion.
Further, the company remains committed on tapping opportunities in the emerging economies.
XL Group’s inorganic growth remains impressive with strategic acquisitions.
The property and casualty (P&C) insurer also engages in shareholder friendly moves. The company currently has $815.8 million remaining under its authorization.
The Zacks Consensus Estimate has been witnessing upward revisions for 2016 and 2017 as most of the estimates were revised higher over the last 30 days. While estimates for 2016 rose 15% to $1.88 per share, those for 2017 increased 5% to $3.45.
However, exposure to catastrophe losses remains a concern for XL Group owing to the uncertainty and the magnitude of impact of such losses. In the second quarter, the P&C insurer incurred catastrophe losses of $240.1 million, which was net of reinsurance and reinstatement premiums. The loss in the reported quarter was significantly wider than the year-ago loss.
Also, a low interest rate environment is a headwind for XL Group.
Zacks Rank and Stocks to Consider
Currently, XL Group carries a Zacks Rank #3 (Hold). Some better-ranked stocks include Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corporation (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
XL Group (XL) Poised for Growth Despite Higher Cat Loss
On Aug 16, 2016, we issued an updated research report on XL Group plc .
XL Group’s second-quarter 2016 earnings outpaced the Zacks Consensus Estimate but deteriorated year over year due to escalating expenses and higher catastrophe losses.
XL Group remains focused on its insurance and reinsurance business lines that provide the best return on capital over the pricing cycle. To refine its business mix, XL Group is deploying capital in businesses with lower loss ratios, which in turn is helping in margin expansion.
Further, the company remains committed on tapping opportunities in the emerging economies.
XL Group’s inorganic growth remains impressive with strategic acquisitions.
The property and casualty (P&C) insurer also engages in shareholder friendly moves. The company currently has $815.8 million remaining under its authorization.
The Zacks Consensus Estimate has been witnessing upward revisions for 2016 and 2017 as most of the estimates were revised higher over the last 30 days. While estimates for 2016 rose 15% to $1.88 per share, those for 2017 increased 5% to $3.45.
However, exposure to catastrophe losses remains a concern for XL Group owing to the uncertainty and the magnitude of impact of such losses. In the second quarter, the P&C insurer incurred catastrophe losses of $240.1 million, which was net of reinsurance and reinstatement premiums. The loss in the reported quarter was significantly wider than the year-ago loss.
Also, a low interest rate environment is a headwind for XL Group.
Zacks Rank and Stocks to Consider
Currently, XL Group carries a Zacks Rank #3 (Hold). Some better-ranked stocks include Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corporation (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>