Saturday, February 5, 2011

XL Group plc (NYSE: XL): Q4 Earnings Preview 2010

XL Group plc (NYSE: XL) is scheduled to release its fourth-quarter financial results after the closing bell on Tuesday, February 8, 2011. Analysts, on average, expect the company to report earnings of 67 cents per share on revenue of $1.20 billion. In the year ago quarter, the company reported earnings of 69 cents per share on revenue of $1.25 billion.

XL Group plc, through its subsidiaries, provides insurance and reinsurance coverages to industrial, commercial, and professional firms, insurance companies, and other enterprises worldwide.

In the preceding third quarter, the Dublin, Ireland-based company's net income was $77.5 million or $0.23 per share, compared to a net loss of $11.4 million or $0.03 per share in the same quarter a year ago. Total revenues for the quarter rose 8.7% to $1.62 billion. Analysts, on average, had expected the company to report earnings of $0.60 per share on revenue of $1.22 billion.

On October 29, the company's board approved a new share buyback program, authorizing the company to buyback up to $1 billion of its ordinary shares.

XL Group recently received a license from the China Insurance Regulatory Commission to operate as a P&C (non-life) company in Shanghai. XL Insurance (China) Co. Ltd. will begin business operations after the completion of all the regulatory registrations. It will be led by Zheqiang Xie, as Chairman and CEO of this subsidiary. The company noted that it is a significant step in the implementation of XL Insurance's strategy to strengthen its presence in emerging markets.

Going forward, The company’s efforts to introduce new products is likely to mitigate falling premium. The company is also taking initiatives to expand its operations and is aiming to tap the opportunities in the growing economy. Rewcently, XL Insurance, the global insurance arm of  XL Group, and Jorgensen & Company, a specialist professional liability managing general underwriter, agreed to offer Accountants' and Consultants' Professional Liability Insurance. The product from XL Group will offer services that foresee and cater to risks faced by accountants. It will also provide added loss prevention services.

Full Disclosure: None.
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