Zacks Reaffirms XL’s Neutral Rating
Bermuda re/insurer Xl Group Plc’s stock had a “neutral” rating reaffirmed by equities research analysts at Zacks Investment Research in a research note issued to investors yesterday [Nov.4]. The US analysts currently have a $23.00 price target on the stock.
Headquartered in Ireland with its executive offices on Bermudiana Road in Hamilton, Zacks’ analyst wrote: “XL Group’s third quarter earnings lagged the Zacks Consensus Estimate as well as year ago earnings numbers largely due to higher catastrophe losses and lower levels of positive prior year loss development.
“However, an increase in income from operating affiliates was partial offsets. The company is also taking initiatives to expand its operations and tap the opportunities in the reviving economy.
“Better operating environment internationally, in Bermuda and Europe, aids the company to write higher premiums. XL Group has also received prior approval to establish a Brazilian insurance operation. Also, the company remains focused on boosting shareholder value through dividend increase and continued share repurchase. XL also scores favorably with the credit rating agencies.
:Significant exposure to catastrophe losses continues to weigh on the results of the company. Also, a soft property and casualty environment will continue to restrict top-line growth. Moreover, the current interest rate environment and exposure to the credit market will hurt investment income to some extent. “
XL, through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises on a worldwide basis.
The company operates through three segments: Insurance, Reinsurance and Life Operations.
