XL Group plc Earnings Cheat Sheet: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component XL Group plc (NYSE:XL) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for XL Group plc rose to $225.7 million (69 cents per share) vs. $194 million (56 cents per share) in the same quarter a year earlier. This marks a rise of 16.3% from the year earlier quarter.

Revenue: Rose 9.2% to $1.7 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: XL beat the mean analyst estimate of 48 cents per share. It beat the average revenue estimate of $1.3 billion.

Quoting Management: Commenting on the Company’s performance, Chief Executive Officer Mike McGavick said: “XL’s strong second quarter performance was built on a broad foundation, as all of our key value drivers contributed to an annualized operating ROE of 10.3%. Our risk management discipline has put XL’s catastrophe loss experience, measured as a percentage of shareholders’ equity, among the best of our peers for both the second quarter and the year to date. XL continued to pursue profitable underwriting opportunities in both existing and expanded markets, and added teams and leaders in lines we consider attractive.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the first quarter with a loss of 52 cents versus a mean estimate of a loss of 44 cents per share.

Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 1.3% to $1.61 billion in the first quarter from the year earlier.

Competitors to Watch: Arch Capital Group Ltd. (NASDAQ:ACGL), The Travelers Companies, Inc. (NYSE:TRV), PartnerRe Ltd. (NYSE:PRE), American Insurance Group (NYSE:AIG), Axis Capital Holdings Ltd. (NYSE:AXS), Montpelier Re Hldgs. Ltd. (NYSE:MRH), RenaissanceRe Hldgs. Ltd. (NYSE:RNR), Aspen Insurance Hldgs. Ltd. (NYSE:AHL).

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(Source: Xignite Financials)