FBR Capital Maintains an 'Outperform' on XL Group plc (XL); Investor Day: A U-Turn in Capital Management
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Price: $1.14 --0%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on XL Group plc (NYSE: XL).
FBR analyst says, "We were quite surprised by the take-aways from XL Group's investor day, which the company hosted on June 7, 2011. XL now appears to have a different agenda for its excess capital than what was previously expected by investors. Despite $690M left in its current buyback authorization, the company appears to be communicating a much smaller appetite for buybacks. Management described a strategy to improve ROE into the top quintile. In particular, loss ratio improvement, expense ratio reduction, profitable growth, and capital structure optimization are factors that they hope will lead to ROE expansion. But, with less emphasis on buybacks, $50-$75M of annual technology spending, the still-soft environment of the casualty business all point to an excruciatingly slow pace toward that goal."
For more ratings news on XL Group plc click here and for the rating history of XL Group plc click here.
Shares of XL Group plc closed at $22.01 yesterday.
FBR analyst says, "We were quite surprised by the take-aways from XL Group's investor day, which the company hosted on June 7, 2011. XL now appears to have a different agenda for its excess capital than what was previously expected by investors. Despite $690M left in its current buyback authorization, the company appears to be communicating a much smaller appetite for buybacks. Management described a strategy to improve ROE into the top quintile. In particular, loss ratio improvement, expense ratio reduction, profitable growth, and capital structure optimization are factors that they hope will lead to ROE expansion. But, with less emphasis on buybacks, $50-$75M of annual technology spending, the still-soft environment of the casualty business all point to an excruciatingly slow pace toward that goal."
For more ratings news on XL Group plc click here and for the rating history of XL Group plc click here.
Shares of XL Group plc closed at $22.01 yesterday.
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