XL Group PLC (XL): Today's Featured Insurance Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

XL Group ( XL) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day up 0.2%. By the end of trading, XL Group fell $0.36 (-1.1%) to $31.62 on average volume. Throughout the day, 2,222,197 shares of XL Group exchanged hands as compared to its average daily volume of 2,338,900 shares. The stock ranged in price between $31.55-$31.94 after having opened the day at $31.69 as compared to the previous trading day's close of $31.98. Other companies within the Insurance industry that declined today were: Donegal Group ( DGICB), down 9.0%, First Acceptance Corporation ( FAC), down 4.3%, CNinsure ( CISG), down 3.5% and Crawford & Company ( CRD.B), down 2.2%.
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XL GROUP Public Limited Company, through its subsidiaries, provides insurance and reinsurance coverages to industrial, commercial, and professional firms, as well as insurance companies and other enterprises worldwide. XL Group has a market cap of $9.3 billion and is part of the financial sector. The company has a P/E ratio of 11.8, below the S&P 500 P/E ratio of 17.7. Shares are up 27.6% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate XL Group a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates XL Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Fidelity National Financial ( FNF), down 5.7%, Kingsway Financial Services ( KFS), down 5.2%, Federated National ( FNHC), down 4.7% and CoreLogic ( CLGX), down 3.7% , were all gainers within the insurance industry with Radian Group ( RDN) being today's featured insurance industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF ( KIE) while those bearish on the insurance industry could consider Proshares Short Financials ( SEF).

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