XL  Xl Capital Limited

Exchange

NYSE

Sector

Finance

Industry

Property-Casualty Insurers

Market Cap.

11.06B

Current Price

$42.88
+0.42 (+0.99%)

Book Price

$28.77
Overvalued by 32.91%
Financial Institution

Company Metrics

  • P/E 14.02
  • P/S 0.99
  • P/B 0.99
  • EPS 3.06
  • Dividend 0.88 / 2.09%
  • Avg. Vol. 2.56M
  • Shares 257.93M
  • Market Cap. 11.06B

Company Description

XL Group plc, through its subsidiaries, provides insurance and reinsurance coverages to industrial, commercial, and professional firms, insurance companies, and other enterprises worldwide. The company operates in three segments: Insurance, Reinsurance, and Life Operations. The Insurance segment offers property, casualty, professional liability, environmental liability, aviation and satellite, mar... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

XL Group Ltd to Release Third Quarter 2017 Results on Tuesday, October 24 ...
PR Newswire (press release) - Oct 12, 2017
HAMILTON, Bermuda, Oct. 12, 2017 /PRNewswire/ -- XL Group Ltd ("XL" or the "Company") (NYSE: XL) announced today that it intends to release its Third Quarter 2017 results after the close of regular stock market trading hours on Tuesday, October 24 ...
WINTON GROUP Ltd Invests $937000 in XL Group Ltd. (XL) Stock
Dispatch Tribunal - 6 hours ago
XL Group logo WINTON GROUP Ltd bought a new position in shares of XL Group Ltd. (NYSE:XL) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission.
ValuEngine Lowers XL Group Ltd. (NYSE:XL) to Sell - TrueBlueTribune
XL Group Ltd. (XL) Holdings Increased by Gotham Asset Management LLC - Week Herald
XL Group Ltd (XL) closed the last trading session with added of 2.71 percent
StandardOracle - 6 hours ago
XL Group Ltd (XL) added 2.71% to reach $42.46 in the previous trading session. Overall, 3.08 Million shares exchanged hands versus its average trading volume of 2.52 Million shares.
XL Group Estimates $1.48B in Q3 Natural Catastrophe Losses
Insurance Journal - Oct 12, 2017
XL Group Ltd. announced its preliminary estimate of net losses of approximately $1.48 billion from third quarter natural catastrophes.
XL Group Announces Preliminary Loss Estimates Related to Third Quarter 2017 ... - PR Newswire (press release)
XL Catlin, Markel release disaster loss estimates - Business Insurance
What The Technical Indicators Are Saying About XL Group Ltd (XL), SPI Energy ...
Post Analyst - 6 hours ago
XL Group Ltd (NYSE:XL) traded at an unexpectedly high level on 10/19/2017 when the stock experienced a 2.71% gain to a closing price of $42.46.
XL Group to buy 20% stake in Mahindra Finance's insurance arm
Livemint - Oct 16, 2017
Mumbai: Mahindra Insurance Brokers Ltd on Monday said that XL Group will acquire a 20% stake in the insurance broker that primarily serves rural and semi-urban India.
XL Group to buy 20% in Mahindra Insurance; LeapFrog to exit - VCCircle
XL Catlin to acquire 20% stake in Mahindra Insurance Brokers - Moneycontrol.com
XL Group picks Dublin for its EU insurance carrier location
PropertyCasualty360 - Sep 21, 2017
A general view of the customs house building and the River Liffey in the centre of Dublin, Ireland. XL Group has had insurance operations in Dublin since 1990.
XL Group plc (XL) Rises 2.71% for October 19
Equities.com - 22 hours ago
XL Group Ltd provides insurance and reinsurance service. It provides property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises.
Technical Indicators Turn Indifferent For XL Group Ltd (XL)
StockNewsGazette - Oct 19, 2017
XL Group Ltd (NYSE:XL) fell by -1.62% in Wednesday's trading session from $42.02 to $41.34 The stock price went upward in 7 of the last 10 days and has generated 5.59% during the last two weeks.
Juniper Networks Inc, Herbalife, XL Group Ltd and more - AFTER HOURS
Proactive Investors UK - Oct 12, 2017
Also, XL Group Ltd (NYSE:XL) shares climbed over 3% to US$40.50 after hours as the insurance giant told investors it expected to register about $1.48bn in catastrophe losses in the third quarter, the bulk of which come from recent hurricanes Harvey ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for XL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate XL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

XL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

XL has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 45.39B 45.65B 45.05B 58.68B 58.43B
Cash ROIC - - - - -

Poor Return on Equity over the past 5 years

XL has shown an inability to deliver strong results for shareholders. This could be due to poor management, XL operating in a highly competitive industry, or having a weak business in general.

XL has only generated $6.61 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 651.13M 1.06B 188.34M 1.21B 440.97M
divided by
Stockholders' Equity 10.51B 10.00B 10.03B 11.68B 10.94B
Return on Equity 6.20% 10.60% 1.88% 10.34% 4.03%

Poor Business Performance over the past 10 years

XL's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

XL has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow - - - - - - - - - -

Consistent Reinvestment of Profits over the past 10 years

XL has consistently retained profits. This may put XL in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, XL can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 2.58B -315.53M 94.46M 513.78M -99.96M 402.32M 1.26B 1.19B 2.08B 2.15B
Retained Earnings Growth - -112.24% 129.94% 443.91% -119.46% 502.48% 214.20% -6.05% 74.91% 3.58%

Highly Competitive Industry over the past 10 years

It's likely that XL is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely XL invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 275.89M -2.55B 74.99M 643.38M -474.76M 651.13M 1.06B 188.34M 1.21B 440.97M
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

XL is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that XL has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

XL has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that XL may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 275.89M -2.55B 74.99M 643.38M -474.76M 651.13M 1.06B 188.34M 1.21B 440.97M
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

XL has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests XL is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 274.04M 326.37M 225.01M 211.53M 209.53M 212.29M 237.83M 248.09M 326.20M 222.76M
divided by
Shares Outstanding 179.69M 238.86M 340.97M 337.71M 312.90M 310.28M 292.07M 271.53M 291.00M 282.76M
Dividend Paid Per Share 1.53 1.37 0.66 0.63 0.67 0.68 0.81 0.91 1.12 0.79
Price at Year End 42.77 3.25 17.65 21.46 19.77 24.69 31.89 34.75 39.82 37.26
Dividend Yield 3.57% 42.04% 3.74% 2.92% 3.39% 2.77% 2.55% 2.63% 2.82% 2.11%

Strong History of Stock Buybacks over the past 10 years

XL has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 179.69M 238.86M 340.97M 337.71M 312.90M 310.28M 292.07M 271.53M 291.00M 282.76M
Stock Bought Back - -24.77% -29.95% 0.96% 7.93% 0.84% 6.24% 7.57% -6.69% 2.91%
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