XL Group (XL) Q2 Earnings: Is It Likely To Disappoint?
Zacks Investment Research | Jul 23, 2017 10:03PM ET
XL Group Ltd (NYSE:XL) is slated to report second-quarter 2017 results on Jul 26, after the market closes. Last quarter, the company delivered a positive earnings surprise of 8.70%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
XL Group is likely to report lower underwriting profit in the soon-to-be-reported quarter due to higher catastrophe losses. As a result, the company is expected to witness a noticeable deterioration in the combined ratio as well.
Net investment income is likely to remain under pressure, owing to the still low interest rate environment. The company has likely witnessed lower level of cash flow due to its share buyback program.
However, this P&C insurer is likely to report top-line growth in the second quarter, banking on higher gross premiums written owing to its diversified product offerings. Reinsurance segment in particular is likely to have reported higher premiums.
Further, continued share buybacks should have aided the company’s bottom line. In fact, the company expects to complete not less than $700 million in buyback in 2017.
With respect to the surprise trend, the company delivered positive surprises in all of the last four quarters with an average beat of 28.14%.
XL Group Ltd. Price and EPS Surprise
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