XL shares hit lowest point since 1991
Shares in XL Capital have dropped to their lowest point since their 1991 debut, at one point hitting $3.45.
Share prices dropped 55% to $4.01 on the New York stock exchange yesterday afternoon.
The Bermuda-based company has reported four consecutive quarterly losses over the last year, during which time share prices have plummeted by 92%.
The company was removed for Goldman Sachs’s ‘conviction buy list’ yesterday over concern about the quality of its portfolio.
Despite this, some analysts think that newly appointed CEO Michael McGavick will be able to turn the company’s fortunes around.
Paul Newsome, an analyst at Sandler O’Neill & Partners, pointed out that McGavick turned around Safeco Insurance when it was struggling.
Newsome believes that XL’s low share price is good for investors, and as such he gives the shares a ‘buy’ rating.
Category: Financials, Insurance News
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