XL Group PLC Earnings: Profit Swings Up and Beats Forecast

S&P 500 (NYSE:SPY) component XL Group PLC (NYSE:XL) reported its results for the first quarter. XL Group, 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 Earnings Cheat Sheet for the First Quarter

Results: Reported a profit of $176.6 million (56 cents per diluted share) in the quarter. XL Group PLC had a net loss of $227.3 million or a loss 73 cents per share in the year-earlier quarter.

Revenue: Rose 8.5% to $1.75 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: XL Group PLC beat the mean analyst estimate of 40 cents per share. It beat the average revenue estimate of $1.55 billion.

Quoting Management: “We believe XL’s first quarter 2012 financial results are a solid step forward. In the quarter, we showed improvement in many of our most important metrics. We delivered both lower loss ratios and combined ratios in insurance and reinsurance. Our investment portfolio performed well, and we grew book value as we continued to buy back shares. We are pleased with our progress and we are resolved to continue this trend as demand for solutions to complex risks grows and pricing improves. The world-class talent we have assembled at XL is fully energized and focused.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 8.8% to $1.73 billion in the fourth quarter of the last fiscal year. The figure rose 2.3% in the third quarter of the last fiscal year from the year earlier and climbed 9.2% in the second quarter of the last fiscal year from the year-ago quarter.

The company trumped estimates last quarter after falling shy in the two quarters prior. In the fourth quarter of the last fiscal year, it missed the mark by 41 cents, and in the third quarter of the last fiscal year, it came in under estimates by 6 cents.

After sitting in the red the quarter before, the company reported a profit last quarter. In the third quarter of the last fiscal year, the company booked a net loss of $42.4 million, or a loss of 14 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 64 cents per share to 56 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $1.86 per share, the average estimate for the fiscal year has fallen from $2.22 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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