This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

XL Group's CEO Discusses Q2 2012 Results - Earnings Call Transcript

To give you a sense of what you can expect from this call. First, I'm going to give you a high-level look at these results, including a brief discussion of our reserve releases, I'll then briefly touch on pricing in the quarter, and then we'll turn to two noteworthy topics; the effect of drought impacting so much of the United States and the developing issues around LIBOR. I'll then turn it over to Pete for a closer discussion of our financial results and to Greg and Jamie to get more granular on our insurance and reinsurance performance.

Now, first to our overall results. As you saw in our release for the second quarter we reported fully diluted operating earnings of $0.71 per ordinary share and an annualized operating ROE of 9.1%. Again, this is a solid result, especially at this point in the cycle and at this point in XL's improvement. All of this translates to fully diluted tangible book value per ordinary share of $30.65, which is up 3.6% in the second quarter and 8.3% higher than where we began the year. We improved our loss and combined ratios in both insurance and reinsurance and reported a total P&C combined ratio of 90.8% more than four percentage points better than the second quarter last year.

And most notably, our insurance results continued their recent improvement. The Insurance segment combined ratio ex-cat, ex-PYD improved 98.5%, which is obviously still higher than we would like, but trending in the right direction.

It is also good to observe that this is the sixth consecutive quarter in which insurance produced a better accident year loss ratio ex-cats. So, as I say, we are delivering on the margin expansion, we expected. Meanwhile, Reinsurance delivered a combined ratio of 72.6%, another really stellar result.

Turning briefly to pricing; broadly, we continue to see improvement across the vast majority of our lines, especially in insurance and this progress has accelerated through the quarter.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs