XL Group Ltd is slated to report third-quarter 2017 results on Oct 24, after the market closes. Last quarter, the company delivered a positive earnings surprise of 7.87%. Let’s see how things are shaping up for this announcement.
Factors to be Considered This Quarter
With the occurrence of Hurricanes Harvey, Irma and Maria during the third quarter as well as the Mexico earthquakes, XL Group’s underwriting profitability will be largely hampered in the soon-to-be- reported quarter. Notably, the company has estimated catastrophe losses for the third quarter to be about $1.35 billion. This in turn might lead to a noticeable deterioration in the combined ratio as well.
Also, the company is expecting a fall in net investment income, owing to the still low-interest rate environment. In addition, improvement in investment income is closely associated with the credit markets and volatility in such markets can render instability in investment earnings.
Further, the company might experience a decline in gross written premiums in the yet-to-be-reported quarter. This is mainly due to a large international casualty quota share treaty in the previous year, which did not get renewed, as well as a cancelled business that did not meet the company’s expectations.
Nonetheless, lower operating expenses and continued share buybacks have likely cushioned the company’s bottom line. In fact, the company expects to complete not less than $700 million in buyback in 2017.
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XL Group Ltd is slated to report third-quarter 2017 results on Oct 24, after the market closes. Last quarter, the company delivered a positive earnings surprise of 7.87%. Let’s see how things are shaping up for this announcement.
Factors to be Considered This Quarter
With the occurrence of Hurricanes Harvey, Irma and Maria during the third quarter as well as the Mexico earthquakes, XL Group’s underwriting profitability will be largely hampered in the soon-to-be- reported quarter. Notably, the company has estimated catastrophe losses for the third quarter to be about $1.35 billion. This in turn might lead to a noticeable deterioration in the combined ratio as well.
Also, the company is expecting a fall in net investment income, owing to the still low-interest rate environment. In addition, improvement in investment income is closely associated with the credit markets and volatility in such markets can render instability in investment earnings.
Further, the company might experience a decline in gross written premiums in the yet-to-be-reported quarter. This is mainly due to a large international casualty quota share treaty in the previous year, which did not get renewed, as well as a cancelled business that did not meet the company’s expectations.
Nonetheless, lower operating expenses and continued share buybacks have likely cushioned the company’s bottom line. In fact, the company expects to complete not less than $700 million in buyback in 2017.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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