Rating agency upgrades outlook on XL

Posted by on Nov 25, 2010 in Local News & Alerts | 0 comments

Standard & Poor’s Corp. has changed its outlook on XL Group Ltd. to stable from negative, citing the “derisking” of the Hamilton, Bermuda-based insurer’s investment portfolio.

“Although we believe XL has a higher potential for realized investment losses and potential losses from runoff businesses than its property/casualty peers, it has markedly reduced this potential, and we do not anticipate that any such losses would materially detract from the group’s continued strong operating performance,” S&P Credit Analyst Steven Ader said in a Tuesday statement.

S&P also revised its assessment of XL’s enterprise risk management to strong from adequate. The rating agency said XL has “materially reduced the potential for unanticipated material losses.”

XL’s core operating subsidiaries have A ratings from S&P.

“XL has taken significant steps to concentrate on our core insurance and reinsurance businesses while derisking our investment portfolio and strengthening our ERM,” XL CEO Mike McGavick said in a statement.

“It is gratifying to have these efforts acknowledged by S&P.”

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