XL Group Reports $293.9 Million Q4 Net Income; $999.2 Million for 2014

February 3, 2015

XL Group plc reported its fourth quarter and full year 2014 results. Highlights include:

  • Operating net income of $293.9 million, or $1.12 per share, for the fourth quarter of 2014, compared with $286.9 million for the same period in 2013.
  • Operating net income for the year of $999.2 million, or $3.68 per share, on a fully diluted basis, compared with $943 million for the full year in 2013.
  • P&C combined ratio of 84.5 percent for the quarter, compared to 93.3 percent in the prior year quarter, and a full year P&C combined ratio of 88.2 percent compared to 92.5 percent in the prior year.
  • Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums in the quarter of $31.7 million, compared to $94.3 million in the prior year quarter.
  • Operating return on average ordinary shareholders’ equity excluding unrealized gains and losses on investments was 13.7 percent and including unrealized gains and losses on investments was 11.8 percent, annualized for the quarter, and 11.2 percent and 10.0 percent, respectively, for the full year.
  • Net income attributable to ordinary shareholders and net income attributable to ordinary shareholders excluding the impact of the life retrocession arrangements of $139.5 million and $350.6 million, respectively, for the quarter, and $188.3 million and $1.2 billion, respectively, for the full year.
  • Fully diluted tangible book value per ordinary shareof $36.79 at December 31, 2014, an increase of $2.93, or 8.7 percent, from December 31, 2013.
  • Share buybacks totaled 5.2 million ordinary shares for $175.0 million during the quarter.

Commenting on the company’s performance, Chief Executive Officer Mike McGavick said:

“XL delivered a very strong 2014 including continued progress in Insurance and an extraordinary year in Reinsurance. Many of our results were the best we have achieved in over fifteen years, including our property and casualty combined ratio of 88.2 percent.

“Insurance results included a 2014 combined ratio of 94.4 percent, the best performance since 2007, and a loss ratio of 63.2 percent. And our reinsurance segment achieved a stellar 73.3 percent combined ratio, one of its best performances as well. Of course, these results were helped, in part, by one of the lowest catastrophe years we have seen in years. To build on our success, we intend to continue developing and delivering outstanding products and services to our current and new markets, continuing to move this progress forward.”

Source: XL Group

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