NEW YORK (TheStreet) -- Shares of XL Group Plc (XL) are up 2.18% to $33.70 on heavy trading volume this afternoon after the insurance and reinsurance company's second quarter profit beat analysts' estimates as margins improved, Bloomberg reports.
Operating income, which excludes a loss tied to the sale of a business, was $1.02 a share, beating the 86 cent average estimate of analysts surveyed by Bloomberg.
The insurer made an underwriting profit of 11.7 cents of profit on every premium dollar it collected in the quarter, compared with 6.2 cents a year earlier, the company said.
XL reported a net loss in the second quarter of $279.3 million, or $1.03 a share, tied to the sale of a life reinsurance unit. That compares with net income of $272.7 million, or 93 cents, in the same period last year.
TheStreet Ratings team rates XL GROUP PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate XL GROUP PLC (XL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."