XL Group plc, headquartered in Dublin, reported operating net income of $187.1 million, or $0.70 per share, for the third quarter, compared to operating net income of $154.6 million in last year’s third quarter (primarily due to higher underwriting profit in the current quarter.)
Net income (loss) attributable to ordinary shareholders of $72.4 million for the quarter decreased compared to $135.6 million in the prior year quarter.
Net income for the current quarter was negatively impacted by the life retrocession derivative, which is offset by a movement in accumulated comprehensive income and therefore does not impact overall book value.
Other earnings highlights include:
- P&C combined ratio of 90.1 percent for the quarter, compared to 95.0% in the prior year quarter
- Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums in the quarter of $29.8 million, compared to $85.0 million in the prior year quarter
- Annualized operating return on ordinary shareholders’ equity, excluding and including unrealized gains and losses on investments, were 8.6 percent and 7.5 percent, respectively, for the quarter
- Net income attributable to ordinary shareholders and net income attributable to ordinary shareholders, excluding the impact of the life retrocession arrangements of $72.4 million and $222.6 million, respectively, for the quarter
- Fully diluted tangible book value per ordinary share of $35.40 at September 30, 2014, an increase of $1.54, or 4.5 percent, from December 31, 2013
- Share buybacks totaled 8.2 million ordinary shares for $275.0 million during the quarter.
Commenting on the company’s performance, Chief Executive Officer Mike McGavick said:
“While we note the relatively benign catastrophe activity so far this year, XL has produced solid across the board results with P&C underwriting profit and combined ratio well ahead of the prior year quarter. On a year to date basis as well, the third quarter continued a solid 2014, with both insurance and reinsurance underwriting profit exceeding last year’s results.
“We’re proud of what XL is producing, particularly given the well-documented pressure on pricing and renewals. Even with the tough market conditions, we believe we are well poised to build on this progress, relying on the drive, innovation, and skill of our underwriters and global teams.”
Source: XL Group
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