Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

XL Group Plc Is Over-Reserved, But Not That Undervalued

XL Group plc (NYSE:XL) may have nearly gone out of business during the worst of the credit crisis, but in the time since the company has done a pretty decent job of repairing its capital situation, even if at a high cost in terms of dilution. The bigger question today is whether the company can generate substantially better results for the long-term - while the company looks over-reserved and over-capitalized, the nature of its underwriting may well limit the upside.

Trying To Modify The Mix

Not unlike ACE Limited (NYSE:ACE) or AIG (NYSE:AIG), XL Group is a rather diverse mix of P&C and specialty insurance and reinsurance. It's also one of the relatively few...

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