XL positive on second quarter results
XL Group has announced that it made a net profit of $319.0 million for the second quarter of 2018, up from the $301.6 million it made in the same quarter of 2017.
However, the company said that operating net income for the quarter came to $220.3 million, down from the $255.1 million it made in the second quarter of 2017.
XL Group said that P&C gross premiums written increased 10.6 percent compared to the prior year quarter and increased by 7.8 percent excluding the impact of foreign exchange. Insurance rate increase year to date through June was 3.8 percent and the reinsurance rate increase year to date through July was 3.7 percent.
The company also reported natural catastrophe pre-tax losses net of reinsurance, reinstatement and premium adjustments for the quarter of $76.8 million (2.9 points to the loss ratio), compared to $92.1 million (3.7 points to the loss ratio), in the prior year quarter.
XL Group said that its P&C combined ratio came 95.8 percent for the second quarter of 2018, compared to 92.3 percent in the same period of 2017.
It added that investment returns had been positively impacted by ongoing portfolio rotations capitalising on rising interest rates and a gain on the sale of one operating affiliate. Potential for future enhancement in investment returns as the company continues to actively manage the portfolio.
“In the second quarter we have continued our progress toward a strong and diversified book, particularly as rate conditions improved across most lines,” said XL’s chief executive officer Mike McGavick. “We grew top line by 10.6 percent, maintained underwriting discipline and continued our shift of our book toward lower volatility business. Partially offsetting these positive trends was non-catastrophe large loss activity from the current quarter as well as prior year development from short tail lines in Insurance. Our investment results continue to improve as active portfolio rotation allows us to take advantage of rising interest rates. Overall, we are pleased with the results and look forward to continuing to realise the full potential of what we have built when we become part of AXA Group.”
