XL Group Announce First Quarter 2018 Results

May 3, 2018 | 0 Comments

XL Group Ltd reported its first quarter 2018 results, with net income attributable to common shareholders of $152.6 million, or $0.58 per fully diluted share, compared to $152.8 million, or $0.57 per fully diluted share, in the prior year quarter.

Commenting on the Company’s performance, XL’s Chief Executive Officer Mike McGavick said: “We are pleased with our solid start to 2018, in-line with our expectations. During the first quarter our performance reflected benefits of our market leadership, focus on underwriting discipline, strong culture of innovation, continuous improvement, and efficiency.

“In the quarter we grew gross premiums written more than 6% compared with the first quarter of 2017 and we continued to improve the Insurance loss ratio excluding PYD and the impact of catastrophe losses. We did see a lower Reinsurance margin in the quarter, largely driven by our strategic initiatives including a shift in portfolio mix towards lower volatility and an increase in outward reinsurance protections.

“With respect to pricing, we are pleased to have achieved broad rate increases throughout our Insurance and Reinsurance portfolio, which will earn into our results over the rest of the year. Also during the quarter we had strong contributions from the investment portfolio, and we continued managing our expenses.

“As we look forward to the next phase in XL’s journey, with the proposed combination with AXA, we believe there is substantial opportunity to continue realizing the potential of what we have built.”

XL Group Results

  • Net income attributable to common shareholders of $152.6 million, or $0.58 per fully diluted share, compared to $152.8 million, or $0.57 per fully diluted share, in the prior year quarter
  • Operating net income1 of $214.4 million, or $0.82 per fully diluted share, compared to $136.1 million, $0.50 per fully diluted share, in the prior year quarter
  • Broad rate increases throughout our portfolio included increases of 3.3% in Insurance and 4.3% in Reinsurance
  • P&C gross premiums written [“GPW”] increased 6.6% compared to the prior year quarter; GPW increased by 3.8%, excluding the impact of foreign exchange
  • Natural catastrophe pre-tax losses net of reinsurance, reinstatement and premium adjustments for the quarter of $73.2 million [2.8 points to the loss ratio], compared to $96.1 million [3.8 points to the loss ratio] in the prior year quarter
  • Net favorable prior year development ["PYD"] was $9.1 million [0.3 points to the loss ratio] in the current quarter, compared to adverse PYD of $24.0 million [0.9 points to the loss ratio] in the prior year quarter
  • P&C combined ratio of 95.3% compared to 94.3% in the prior year quarter
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