XL Announce Q1 Net Loss Of $227 Million
Global re/insurer XL Group yesterday [May 3] reported a net loss attributable to ordinary shareholders was $227.3 million, or loss of $0.73 per share for the first quarter of 2011, compared to a net income of $128 million, or $ 0.37m per share, in the first quarter of 2010.
XL — headquartered in Ireland but with its executive offices in Bermuda – said the loss in the first quarter was driven by the increase in property and casualty losses incurred due to large current year natural catastrophe losses net of reinstatement premiums of $387.4 million compared to $181.1 million for the prior year quarter.
The company last month estimated its total losses from March’s devastating earthquake and tsunami in Japan would range from $190 million to $290 million, on top of an estimated $70 million to $85 million in losses it already anticipated from the New Zealand earthquake. The period also included severe floods and a tropical cyclone in Australia.
Total revenues were $1.61 billion for the first quarter of 2011, compared to $1.63 billion for the same period last year.
Net premiums written were $1.71 billion for the first quarter of 2011, compared to $1.60 billion for the corresponding quarter last year.
XL Insurance CEO Mike McGavick said that the first quarter results demonstrate resilience in the face of global catastrophic events.
“As markets respond to these events and others, we believe our underwriting excellence, operating efficiency and capital strength put XL in an exceptional position to pursue the opportunities provided by improving market conditions,” Mr. McGavick said.
“XL’s first quarter results demonstrate resilience in the face of global catastrophic events. We are proud of the roles our insurance and reinsurance solutions are playing in the recovery of the devastated economies.
“Our risk management discipline again resulted in estimated losses from the quarter’s three major catastrophes that are well within our expected levels.”
The full 9-page release is below, click ‘Full Screen’ for greater clarity:
