XL group suffers $100 million loss in third quarter

Posted by on Nov 3, 2010 in Local News & Alerts | 0 comments

XL GROUP plc has reported its results for the third quarter of 2010.

Commenting on the Company’s performance, Chief Executive Officer Mike McGavick said: “We have delivered another quarter of solid operating results in a market that continues to be challenging.”

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P&C operations delivered a healthy combined ratio of 94.9% which includes 6.5 points of favorable prior year development.

The current accident year combined ratio for the P&C operations of 101.4% in the quarter included $66.2 million of natural catastrophe losses, net of reinstatement premiums.

The underlying combined ratio which excludes prior year development and natural catastrophes was 96.2%, virtually unchanged from the prior year.

Mike McGavick added, “This demonstrates our underwriting discipline in a challenging market.

“However, despite this solid underwriting discipline, we continue to feel the impact that the prolonged soft market has on earnings.”

Third Quarter Highlights

Operating income was $175.0 million in the third quarter, or $0.52 per ordinary share, compared to $292.6 million in the same quarter last year.

Although it is considered to be a relatively light quarter for natural catastrophe losses, there was an above average level of large property and excess casualty loss activity impacting the quarter.

The pre-tax impact of natural catastrophe losses, net of reinstatement premiums, in the current quarter was approximately $66.2 million compared to $30.8 million in the prior year quarter.

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