XL Group plc
) expects pretax loss from Superstorm Sandy to approximate $350
million, net of reinsurance and reinstatement premiums in the
fourth quarter of 2012.
The Reinsurance segment will incur almost 60% of the estimated
loss. Within the Reinsurance segment, Property Reinsurance will
have to bear 80% of the loss while the remainder will be borne by
Marine. Within the Insurance segment, Property will bear 85% of
the loss while Specialty lines, including Marine, Fine Art and
Specie, will bear 15% of the loss.
The company posted strong results in each of the three quarters
in 2012 due to the absence of any major catastrophe events.
However, the final quarter might show a different picture due to
the impact of Hurricane Sandy. Loss modeling companies project
the amount to be approximately $25 billion.
Each of the three reported quarters exhibited huge improvement in
underwriting results, posting underwriting profits. Combined
ratio also exhibited a huge year-over-year improvement.
The Zacks Consensus Estimate for fourth quarter and full year
2012 is currently pegged at 3 cents and $1.83 respectively.
However, the final quarter is expected to fare better that the
year-ago quarter, which suffered operating loss of 25 cents per
share largely due to higher catastrophe losses, lower levels of
positive prior-year loss development and higher tax expenses.
Therefore, the current estimate represents a year-over-year
improvement of 112.6%
Property and casualty insurer,
Montpelier Re Holdings Ltd.
), announced its expectations of pretax net loss from Superstorm
Sandy in the fourth quarter of approximately $95 million, net of
reinsurance recoveries and reinstatement premiums.
) also expects loss from Superstorm Sandy to approximate $380
million after tax, net of reinsurance and including reinstatement
premiums in the fourth quarter of 2012.
XL Group, ACE Limited and Montpelier, all carry a Zacks #3 Rank,
translating into a short-term Hold rating.
ACE LIMITED (ACE): Free Stock Analysis Report
MONTPELIER RE (MRH): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
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