XL Capital Group’s (XL) financial strength rating (FSR) of “A" (Excellent) and issuer credit ratings (ICR) of “a" were reaffirmed today by the rating agency A.M. Best. The outlook for all ratings is “stable". The rating reaffirmation is followed by XL’s efforts to restructure its investment portfolio by settling with Syncora Holdings. The company had a disappointing run last year, dragged down by structured-finance losses recorded by Syncora Capital, a bond insurer, of which it was the majority owner. Last October, XL severed its ties with Syncora, a big step in setting a track to recovery. On a year-to-date basis, XL has reduced its exposure to more volatile asset classes by $3.5 billion. XL also implemented expense reduction initiatives in the second half of 2008. It has been streamlining processes across all geographic locations, with a primary emphasis on corporate functions. The company has also ...

Foreign exchange losses, coupled with a decline in net investment income, shortened XL Capital's (XL) second-quarter earnings. On Jul 28 the company reported results that missed our expectations. Earnings came in at $79.9 million, or $0.23 per share, versus $1.33 last year.

Excluding items, reported earnings were $162.6 million, or $0.47 per share, in comparison to $266.2 million, or $1.49, in the prior-year period. On a per share basis, earnings shrank by 68%. Earnings fell short of the Street's expectation of $0.62 per share, whereas we had expected earnings of $0.65 per share.

Revenues fell 18.8% year over year to $1.73 billion, versus the $1.71 billion consensus. We had expected revenues of $1.6 billion.

Earnings were shortened because of a foreign exchange loss of $145.2 million that was due to deteriorating dollar value, coupled by a decline in net investment income.

Net written premiums fell 21% year over year to $1.08 billion,

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The appetite for “Crystal Ball” predictions seems to be insatiable. Despite the fact that I am consistently wrong on the timing of my predictions, not the direction, I’m good at that, but when it happens, not so good, I have been asked to do another prediction article.

With that in mind, I have decided to give you a feel for what some of the best people I know in the money business are thinking. Not saying, thinking.

I’m not a mind reader, although many of my former clients expected me to be, but I do have a source for great financial information that is virtually untapped.

My home is in a little area of Baltimore near the harbor that is within walking distance of most of the big brokerage and banking businesses in downtown.  As you might expect, we have more than our share of bankers, analysts,

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Jeff is traveling, so we are republishing his recent interview from the Kirk Report, one of our featured sources.  The Kirk Report is an excellent investor resource, with many specific stock ideas for members.  Charles Kirk also reads very widely and provides regular links to articles we might otherwise have missed.  He came up with some excellent questions for the interview, getting Jeff to discuss many topics he has not covered on "A Dash." Here is the Kirk Report interview: It is with great pleasure to have Jeff Miller, from A Dash Of Insight, to participate in this month's Q&A. Many of you know Jeff because I've linked to many (if not the vast majority) of his blog posts. In this Q&A we'll cover a variety of topics ...