XL Group has announced that it made a loss of $1.04 billion in the third quarter of 2017, a massive fall from the $70.6 million profit it made in the same quarter of 2016.
The company reported natural catastrophe pre-tax losses net of reinsurance, reinstatement and premium adjustments and redeemable non-controlling interest for the quarter of $1.48 billion, compared to $97.4 million, in the prior year quarter. The natural catastrophe losses are largely attributed to hurricanes Harvey, Irma and Maria, which hit the US and Caribbean in August and September.
Gross premiums written for XL Group’s P&C operations over the third quarter of 2017 came to $3.01 billion, an increase on the $2.7 billion the company wrote over the same period of 2016. The company also reported an underwriting loss of $1.2 billion for the period, a substantial fall from the underwriting profit of $166.8 million its P&C operations reported for the third quarter of 2016.
“The natural catastrophes that mark the third quarter bring a unique devastation to those impacted and we continue the important work of helping our clients rebuild in these times of need,” XL’s chief executive officer Mike McGavick said.
“The financial impact of these events was, of course, significant to our financial results in the quarter. At the same time, excluding these events, our underlying results show continued progress as demonstrated by improvement in the ex-cat P&C combined ratio, insurance combined ratio and insurance loss ratio versus the prior year quarter.
“As we look at the global re/insurance markets today, with a view that we will see new levels of appropriate sustainable pricing, we believe we are well positioned by virtue of our diverse portfolio, global relevance and disciplined underwriting.”
XL Group, Q3 results, Hurricane losses, Mike McGavick, Global