Shares of insurer XL Capital Ltd., with operations in Hartford, advanced Wednesday as one analyst noted solid underwriting and cost cuts by the insurer, The Associated Press reports.
Keefe, Bruyette & Woods analyst Cliff Gallant raised his full-year earnings estimate to $2.40 per share, from $2.20 per share. For 2011, he raised his estimate to $2.45 per share, from $2.40 per share.
He maintained his “market perform” rating on the Bermuda-based company.
XL shares rose $1.03, or 6 percent, to $18.20, in afternoon trading.
In a note to investors, Gallant wrote that XL Capital surpassed its competitors with relatively lower catastrophe costs. He also said XL’s investment portfolio concerns were “increasingly a non-issue”
On Tuesday, XL said natural disasters and investment losses drove down its net income in the first quarter. However, brisk sales helped its revenues rise to $1.6 billion, from $1.5 billion the year before.
Excluding one-time charges, XL said its net income in the first quarter was 44 cents per share. That beat Gallant’s estimate of 35 cents per share.
FBR analyst Bijan Moazami on Wednesday also affirmed the agency’s “outperform” rating and $26 price target for the company.
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