Citi Reiterates Buy on XL Group

Citi is out with its report today on XL Group XL, reiterating Buy. In a note to clients, Citi writes, "We reiterate our Buy rating — despite an investor day that fell short we view XL as well-positioned in the medium and long-term owing to our estimate of ~$2B+ of excess capital. This capital will enable XL to: 1) withstand an active Hurricane season relative to peers; and 2) fuel select new business growth with its influx of underwriter talent to generate longer-term returns. We remain confidant in the management team headed by CEO Mike McGavick." Citi maintains a $27 PT on XL. Shares of XL closed Tuesday at $21.36.