J.P. Morgan Reports Updated Estimates On XL Group

In a report published by J.P. Morgan, XL Group's XL estimates are to be updated for New Zealand losses.

J.P. Morgan said that after the market close on Wednesday, XL Group provided its initial pretax loss estimate for the Christchurch, New Zealand earthquake in the range of $70-$85 million, net of reinsurance and reinstatements. “The company's estimate is based off an expected insured industry loss of $8-$12 billion. As a result, we are lowering our 1Q and full year 2011operating EPS estimate by $0.22 and $0.23 to $0.15 and $1.72, respectively. Our estimated catastrophe load for 1Q now includes $85 million of New Zealand quake losses in addition to Australian flood losses of $95 million, which was previously in our estimate.”

XL Group closed yesterday at $22.22.