XL Shares Rise as Profit Beats Estimates: New York Mover

XL Group Plc (XL) climbed the most in almost a year in New York trading after the insurer’s second- quarter profit beat analysts’ estimates as premium revenue increased.

XL jumped $1.36, or 6.4 percent, to $22.73 at 11:08 a.m., the biggest intraday gain since last August. The Dublin-based insurer has gained 15 percent since Dec. 31 and is up sixfold from the end of 2008, the year the stock plunged on losses tied to mortgage-market bets.

Operating profit in the three months ended June 30 was 71 cents a share, the company said late yesterday in a statement, beating by 16 cents the average estimate of 20 analysts surveyed by Bloomberg. Premium revenue increased 7.3 percent to $1.4 billion. The insurer earned 9.2 cents of underwriting profit for every premium dollar, up from 5.1 cents a year earlier.

“We view XL’s second-quarter results as strong, reflecting the company’s ongoing efforts at turning its business around,” Arun Kumar and Brett Gibson, credit analysts at JPMorgan Chase & Co., said in a note today. “Highlights include notably improved underlying underwriting results.”

To contact the reporter on this story: Dan Kraut in New York at Dkraut2@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.