Back to top

Analyst Blog

XL Group plc (XL - Analyst Report) expects pretax loss from Superstorm Sandy to approximate $350 million, net of reinsurance and reinstatement premiums in the fourth quarter of 2012.

The Reinsurance segment will incur almost 60% of the estimated loss. Within the Reinsurance segment, Property Reinsurance will have to bear 80% of the loss while the remainder will be borne by Marine. Within the Insurance segment, Property will bear 85% of the loss while Specialty lines, including Marine, Fine Art and Specie, will bear 15% of the loss.

The company posted strong results in each of the three quarters in 2012 due to the absence of any major catastrophe events. However, the final quarter might show a different picture due to the impact of Hurricane Sandy. Loss modeling companies project the amount to be approximately $25 billion.

Each of the three reported quarters exhibited huge improvement in underwriting results, posting underwriting profits. Combined ratio also exhibited a huge year-over-year improvement.

The Zacks Consensus Estimate for fourth quarter and full year 2012 is currently pegged at 3 cents and $1.83 respectively. However, the final quarter is expected to fare better that the year-ago quarter, which suffered operating loss of 25 cents per share largely due to higher catastrophe losses, lower levels of positive prior-year loss development and higher tax expenses. Therefore, the current estimate represents a year-over-year improvement of 112.6%

Property and casualty insurer, Montpelier Re Holdings Ltd. (MRH - Analyst Report), announced its expectations of pretax net loss from Superstorm Sandy in the fourth quarter of approximately $95 million, net of reinsurance recoveries and reinstatement premiums. ACE Limited (ACE - Analyst Report) also expects loss from Superstorm Sandy to approximate $380 million after tax, net of reinsurance and including reinstatement premiums in the fourth quarter of 2012.

XL Group, ACE Limited and Montpelier, all carry a Zacks #3 Rank, translating into a short-term Hold rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%