XL has recorded impressive quarterly results despite challenging market conditions, reporting a combined ratio of 76.3 percent for reinsurance.
The company's P&C combined ratio was 89.7 percent for the quarter, compared to 87.7 percent for the same quarter in 2013.
Operating net income for the quarter was at $238.6 million, or $0.85 per share, and net income was at $255.7 million, or $0.91 per share.
P&C gross written premiums for the quarter were $2.42 million, up 1 percent from the $2.40 million written last year.
Commenting on the strong performance, CEO Mike McGavick says, “In the first quarter of 2014, XL produced one of the best quarters since the end of 2008. These results included a total P&C combined ratio of 89.7 percent, total underwriting profit of $145 million, and a loss ratio of 58.9 percent — all of which demonstrate our continued broad-based improvement."
As a result of higher renewed premiums in international professional and North American casualty and construction lines, the insurance segment's gross written premiums increased 4.9 percent from the prior year quarter. The reinsurance segment's gross written premiums decreased 5.4 percent from the prior year quarter, predominantly driven by the non-renewal of a large UK motor treaty and competitive trading conditions in property.
McGavick continued, “This performance also included insurance segment underwriting profit of $45 million and an insurance accident year ex-cat combined ratio of 94.6 percent in the quarter. The 76.3 percent combined ratio for reinsurance is particularly satisfying given the difficult market conditions. All in, we like the way these results position us for 2014."
XL, Q1, results