Stock on Watch: XL Group Ltd (XL)

Company Profile:

XL Group Ltd, through its subsidiaries, operates as an insurance and reinsurance company. The company provides property, casualty, and specialty products to industrial, commercial, professional, and insurance companies, as well as other enterprises worldwide. The Company operates through two segments: Insurance and Reinsurance. The Company’s Insurance segment is organized into four product divisions: Global Casualty (Casualty); Global Energy Property, & Construction (EPC); Global Professional (Professional), and Global Specialty (Specialty). Its insurance operations provide insurance policies for corporate risks that may require large limits, use of a captive insurance company and the need for a program of locally issued policies. The Reinsurance segment provides casualty, property risk, property catastrophe, specialty, and other reinsurance lines on a global basis with business being written on both a proportional and non-proportional treaty basis, and also on a facultative basis. XL Group Ltd was founded in 1986 and is based in Hamilton, Bermuda.

Recent News:

The company intends to release its Third Quarter 2016 results after the close of regular stock market trading hours on Wednesday, October 26, 2016. A conference call to discuss the Company’s results will be held at 5:00 p.m. Eastern Time on October 26, 2016.

On Sept. 15, 2016, XL Catlin announced that it has entered into a definitive agreement to acquire Brooklyn Underwriting Pty Limited and Brooklyn IT Pty Limited (“Brooklyn”) from Paul Hines, their beneficial owner.

For the second quarter 2016, net income attributable to ordinary shareholders of $43.8 million, decreased compared to $915.0 million in the prior year quarter. Operating net income2 of $106.4 million, or $0.37 per share, for the quarter on a fully diluted basis.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

XL’s strengths can be seen in its strong growth and better profitability. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is increasing to 52.56. We rate XL Group Ltd (XL) a Strong BUY.