The Royal Gazette reports that XL Capital’s (XL) CEO Michael McGavick recently purchases $2 million of his company’s stock:
XL Capital Ltd. chief executive officer Michael McGavick has shown his confidence in his company bouncing back from its recent hard times by spending $2 million of his own money on the Bermuda-based insurer’s shares.
A regulatory filing on Thursday showed that Mr. McGavick purchased 110,000 XL shares on the open market at $18.19 apiece, thereby quadrupling his holding in the company he leads.
Another insider to give personal financial backing to the company was former Bermuda Governor Sir John Vereker, an XL director, who invested nearly $50,000 in its shares, also on Thursday.
Mr. McGavick has been in the XL hot seat for three months, succeeding Brian O’Hara, and has experienced a baptism of fire during one of the most difficult periods in the company’s history.
A company’s CEO purchasing large amounts of stock on the open market is a very positive sign. I’ve written about XL previously in connection to their exposure to the massive storm and flood damage Iowa saw not too long ago. XL’s stock is down over 70% for the past 12 months. I am seriously thinking about establishing a small position in XL with this recent bit of news.
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