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XL Group Unit Acquires New Energy Risk to Boost Business

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XL Group plcXL announced that its self sponsored venture capital initiative - XL Innovate - has acquired New Energy Risk, Inc.

Founded in 2010, New Energy Risk bridges the gap between risk capital providers and owners, developers and customers of renewable energy projects. In 2014, the company partnered with XL Group and Munich Re to work on the growth of renewable energy technologies.

XL Innovate invests in insurance businesses that address the most complex risks in the world. The recent acquisition, therefore, fits XL Innovate's line of business. XL Innovate is expected to benefit from the sale of New Energy Risk's distinctive performance warranty products that allow clean technology companies to receive project financing to expedite growth.

XL Group has always eyed strategic acquisitions to ramp up its operational results. The Catlin Group buyout in May increased the insurer's alternative capital opportunities and business in the Lloyd's platform. Also, last month, XL America, Inc., an indirect wholly owned subsidiary of XL Group agreed to takeover Allied International Holdings, Inc., an ace insurer of the outdoor entertainment industry in the U.S. These buyouts are well supported by the company's strong capital and liquidity position.

XL Group's compelling inorganic growth and strategic focus on global expansion will likely prompt a revision in earnings estimates and hence, a possible rank upgrade. Currently, the property & casualty insurer carries a Zacks Rank #3 (Hold).

Following the inorganic route to ramp up one's operational profile is a well-accepted strategy among insurers as acquisitions rage this space. Earlier this month, Sun Life Financial Inc. SLF completed the takeover of Bentall Kennedy Group.

Also, United Insurance Holdings Corp. UIHC entered an agreement to acquire all the shares of Interboro Insurance Company to enrich its insurance portfolio. AmTrust Financial Services, Inc. AFSI also inked a deal to acquire Republic Companies, Inc and its affiliates to complement its property & casualty and service and fees business.

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XL GROUP PLC (XL): Free Stock Analysis Report

AMTRUST FIN SVC (AFSI): Free Stock Analysis Report

SUN LIFE FINL (SLF): Free Stock Analysis Report

UTD INSURANCE (UIHC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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