The XL Group announced net income and operating net income of $135.6 million and $154.6 million, respectively, compared to net income and operating net income of $171.9 million and $188.0 million, respectively, in Q3 2012.
The decrease was “primarily due to natural catastrophe losses, as well as higher levels of medium to large losses in Insurance, in the current quarter as compared to the prior year quarter,” XL explained. “For the nine months ended September 30, 2013, however, the P&C combined ratio of 92.2 percent remains lower than for the same period in 2012 when it was 92.7 percent.”
Other financial highlights for the period were listed as follows:
• Operating net income1 of $154.6 million, or $0.53 per share, and net income of $135.6 million, or $0.47 per share, for the quarter on a fully diluted basis
• Operating net income1 of $656.1 million, or $2.23 per share, and net income of $759.1 million, or $2.57 per share, for the year to date on a fully diluted basis
• P&C combined ratio of 95.0 percent for the quarter, compared to 92.2 percent in the prior year quarter, and a year to date P&C combined ratio of 92.2 percent compared to 92.7 percent in the prior year period
• Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums of $85.0 million compared to $32.0 million in the prior year quarter
• Annualized operating return on ordinary shareholders’ equity2 excluding and including unrealized gains and losses on investments were 6.8 percent and 6.2 percent, respectively, for the quarter and 9.6 percent and 8.6 percent, respectively, for the year to date
• Fully diluted tangible book value per ordinary share3 of $32.96 at September 30, 2013, an increase from June 30, 2013 of $0.51 or 1.6 percent, and a decrease of $0.39, or 1.2 percent, from December 31, 2012, including a decrease in unrealized investment gains, net of tax, of $665.5 million
• Share buybacks totaled 4.8 million ordinary shares for $150.0 million during the quarter
CEO Mike McGavick commented: “Our year to date Insurance segment accident year combined ratio ex-cat of 96.1 percent and loss ratio ex-cat of 65.6 percent are the best results since 2007 on the same basis. And our nine-month P&C combined ratio of 92.2 percent is 0.5 percentage points better than the same period last year.
“While we are encouraged by the progress, we have continuing work to do, and in the third quarter catastrophe and individual loss activity contributed to higher than desired quarterly accident year loss ratios. Overall, looking at the first nine months of 2013, and particularly at having the lowest insurance ex-cat loss ratio in six years, we find validation in the steps we have taken. We remain confident that we are on the right track and are focused on the work at hand.”
Source: XL Group
Topics Profit Loss Property Casualty AXA XL
Was this article valuable?
Here are more articles you may enjoy.
AIG Files Amended Suit Against Former Execs, Dellwood Insurance 
Hurricane Beryl Triggers Record Payout for Caribbean Insurer 
Insurers Hike Rates as Extreme Storms Like Beryl Proliferate 
Hurricane Beryl: Insurers See Minimal Impact, Brace for Active Season 
