Eye-Catching Hot Stock: XL Group Ltd (NYSE: XL)

On Monday, Shares of XL Group Ltd (NYSE: XL) rose 0.50% to $56.41. The stock recorded $56.12 as its minimum price and hit the max level of $56.47, during its most recent trading session. It traded total volume of 1.08M shares lower than the average volume of 2.29M shares.

XL Group Ltd (XL) recently stated its first quarter 2018 results.

First Quarter Summary:

  • Net income attributable to common shareholders of $152.60M was virtually unchanged contrast with the prior year quarter income of $152.80M.
  • Operating net income of $214.40M increased contrast to $136.10M in the prior year quarter, mainly driven by improved investment returns and lower financing costs associated with our preferred shares, partially offset by marginally lower overall underwriting profit.
  • Net investment income for the current quarter was $218.50M, contrast to $200.50M in the prior year quarter. Net investment income for the current quarter, excluding the Life Funds Withheld Assets, was $188.10M, contrast to $167.20M in the prior year quarter. This increase was mainly because of active sector rotation and portfolio management activities, and a boost in new money rates, all of which resulted in a boost in investment yields.
  • Income from investment associates was $56.00M for the current quarter, contrast to $51.90M in the prior year quarter. Hedge fund performance was strong in the current quarter, consistent with prior year quarter results. Results for private equity fund associates and investment manager associates improved in the current quarter, more than offsetting weaker results in other associates as contrast to the prior year quarter.
  • Operating expenses during the current quarter of $472.60M were $4.50M or 1.0% unfavorable contrast to the prior year quarter. After excluding the $22.60M of AXA-related transaction costs in the current quarter and $33.90M of Catlin-related integration costs in the prior year quarter, expenses increased $15.70M, or 3.6%, reflecting further investment in our business, predominately within the Insurance segment.
  • Income tax expense of $31.90M is higher as contrast to $13.10M recognized during the prior year quarter. The increase in current quarter income tax expense is mainly attributable to the combination of the noteworthy increase in operating income and a greater proportion of earnings in taxable jurisdictions in Q1 of 2018 as contrast to the prior year quarter.

XL has the market capitalization of $14.49B and its EPS growth ratio for the past five years was -23.20%. The return on assets ratio of the Company was -0.90% while its return on investment ratio stands at -1.70%. Price to sales ratio was 1.27 while 85.10% of the stock was owned by institutional investors.

Eric Clapton

Eric Clapton

I am Eric Clapton and has over 14 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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