XL Group Announce First Quarter 2017 Results

April 26, 2017

XL Group announced their 2017 first quarter results, with net income attributable to common shareholders of $152.8 million, or $0.57 per share, compared to $21.9 million, or $0.07 per share, in the prior year quarter.

Commenting on the Company’s performance, Chief Executive Officer Mike McGavick said: “We are pleased to start off 2017 with solid performance, focused growth and the continuation of lower operating expenses.

“As we approach the two year anniversary of the Catlin acquisition, we see the benefits of our increased market presence, our focus on underwriting discipline, our strong culture of innovation and continuous improvement, and a more efficient operating platform.

“Additionally, our realigned operating model seamlessly went live at the beginning of the year and with it we remained steadfast on superior client experience.

“As a result, our performance included an accident year combined ratio excluding catastrophes of 89.5%, an improvement of 2.6 points compared to the first quarter of 2016. 2017 is all about delivering on what we have built.”

XL Group Results

  • Net income attributable to common shareholders of $152.8 million, or $0.57 per share, compared to $21.9 million, or $0.07 per share, in the prior year quarter
  • Operating net income of $136.1 million, or $0.50 per share, for the quarter on a fully diluted basis compared to $103.4 million, or $0.35 per fully diluted share, in the prior year quarter
  • P&C combined ratio of 94.3% for the quarter compared to 92.5% in the prior year quarter
  • Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums in the quarter of $96.1 million [3.8 points to the loss ratio], compared to $52.8 million [2.2 points to the loss ratio], in the prior year quarter
  • Adverse prior year development [PYD] of $24.0 million, inclusive of previously announced $75.0 million of adverse development from the UK Ogden rate table change, compared to a favorable $43.4 million in the prior year quarter
  • Integration costs related to the combination with Catlin Group Limited [Catlin] totaled approximately $33.9 million for the quarter compared to $55.0 million in the prior year quarter
  • Fully diluted book value per common share of $41.10 at March 31, 2017, an increase of $0.77, or 1.9%, from fully diluted book value per common share of $40.33 at December 31, 2016
  • Fully diluted tangible book value per common share of $32.83 at March 31, 2017, an increase of $0.62, or 1.9%, from fully diluted tangible book value per common share of $32.21 at December 31, 2016
  • Annualized return on average common shareholders’ equity [ROE] was 5.6% for the quarter compared with 0.7% for the prior year quarter
  • Annualized operating ROE1,4 excluding and including average accumulated other comprehensive income [AOCI] was 5.4% and 5.0% for the quarter and 3.8% and 3.5% in the prior year quarter, respectively. Excluding Catlin related integration costs these return rates would have been 6.5% and 6.1% in the first quarter of 2017 and 5.7% and 5.3% in the prior year quarter, respectively
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