XL Group (XL) Misses Q3 EPS by 16c, Miss on Revenues

XL Group (NYSE: XL) reported Q3 EPS of ($4.00), $0.16 worse than the analyst estimate of ($3.84). Revenue for the quarter came in at $2.62 billion versus the consensus estimate of $2.83 billion.

• Net loss attributable to common shareholders of $1.04 billion, or $4.06 per fully diluted share, for the quarter, compared to net income attributable to common shareholders of $70.6 million, or $0.25 per fully diluted share, in the prior year quarter
• Operating net loss1 of $1.03 billion, or $4.00 per fully diluted share, for the quarter, compared to operating net income of $122.5 million, or $0.44 per fully diluted share, in the prior year quarter
• Natural catastrophe pre-tax losses net of reinsurance, reinstatement and premium adjustments and redeemable non-controlling interest for the quarter of $1.48 billion (58.8 points to the loss ratio), compared to $97.4 million (4.1 points to the loss ratio), in the prior year quarter. The current quarter natural catastrophe losses are largely attributed to hurricanes Harvey, Irma and Maria
• P&C combined ratio of 146.9% or 89.8% excluding prior year development and natural catastrophe losses for the quarter compared to 93.1% or 91.3% excluding prior year development and natural catastrophe losses in the prior year quarter
• P&C loss ratio excluding prior year development and natural catastrophe losses of 59.5% for both the current quarter and the prior year quarter
• Net favorable development was $30.9 million or 1.1 loss ratio points, in the current quarter, compared to net favorable development of $53.6 million, or 2.3 loss ratio points, in the prior year quarter
• Fully diluted book value per common share of $38.27 at September 30, 2017, a decrease of $3.88, or 9.2%, from fully diluted book value per common share of $42.15 at June 30, 2017
• Fully diluted tangible book value per common share2 of $29.70 at September 30, 2017, a decrease of $4.01, or 11.9%, from fully diluted tangible book value per common share of $33.71 at June 30, 2017
• YTD Annualized ROE1, was (7.5)% for the nine months ended September 30, 2017 and 1.6% , for the nine months ended September 30, 2016.
• YTD Annualized Operating ROE1,3 excluding and including AOCI was (8.9)% and (8.1)%, respectively, for the nine months ended September 30, 2017 and 4.2% and 3.8%, respectively, for the nine months ended September 30, 2016. Excluding Catlin-related integration costs these return rates would have been (8.0)% and (7.3)%, respectively, for the nine months ended September 30, 2017 and 6.1% and 5.5%, respectively for the nine months ended September 30, 2016

For earnings history and earnings-related data on XL Group (XL) click here.

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