XL Group Earnings: Swung to a Loss

S&P 500 (NYSE:SPY) component XL Group plc (NYSE:XL) swung to a loss in the first quarter. XL Group plc, through its subsidiaries, provides global insurance and reinsurance coverages to industrial, commercial and professional service firms and insurance companies.

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XL Group plc Earnings Cheat Sheet for the First Quarter

Results: Swung to a loss of $227.3 million (73 cents/diluted share) in the quarter. The property and casualty insurance company had net income of $143.9 million or 37 cents per share in the year earlier quarter.

Revenue: Fell 1.3% to $1.61 billion YoY.

Actual vs. Wall St. Expectations: The mean estimate for XL was a loss of 45 cents/share. Estimates ranged from a loss of 10 cents per share to a loss of 87 cents per share.

Quoting Management: “XL’s first quarter results demonstrate resilience in the face of global catastrophic events,” Chief Executive Officer Mike McGavick said. “We are proud of the roles our insurance and reinsurance solutions are playing in the recovery of the devastated economies. Our risk management discipline again resulted in estimated losses from the quarter’s three major catastrophes that are well within our expected levels. As markets respond to these events and others, we believe our underwriting excellence, operating efficiency and capital strength put XL in an exceptional position to pursue the opportunities provided by improving market conditions.”

Key Stats:

XL’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $195.4 million in the fourth quarter of the last fiscal year, a profit of $110 million in the third quarter of the last fiscal year and $194 million in the second of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of two consecutive quarters of revenue increases. Revenue rose 9.5% in the fourth quarter of the last fiscal year and 9% in the third quarter of the last fiscal year.

Competitors to Watch: Arch Capital Group Ltd. (NASDAQ:ACGL), The Travelers Companies, Inc. (NYSE:TRV), PartnerRe Ltd. (NYSE:PRE), Zurich Financial Services (ZFSVY), Axis Capital Holdings Ltd. (NYSE:AXS), Montpelier Re Hldgs. Ltd. (NYSE:MRH), RenaissanceRe Hldgs. Ltd. (NYSE:RNR), Aspen Insurance Hldgs. Ltd. (NYSE:AHL), and XL Group plc (XL3)

Stock Performance: Shares of XL are down 1.28 percent to $23.89 in after hours trading.

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