XL Catlin 2016 Q1 Net Income: $103.4 Million
XL Group plc reported its first quarter results for 2016, with an operating net income of $103.4 million, or $0.35 per share, for the quarter on a fully diluted basis
Commenting on the Company’s performance, Chief Executive Officer Mike McGavick said: “XL Catlin navigated the challenging conditions of the first quarter, producing good underlying results while maintaining our focus on bottom-line underwriting and top-line discipline.
“This translated to a solid 92.5% P&C combined ratio while we grew our tangible book value per share and increased our share buybacks to approximately 10.0 million shares or $355.1 million.
“While we see difficult market conditions continuing in the near-term, we firmly believe our focus on the bottom-line is the right long-term strategy and that we remain very well positioned.
“Near the one year anniversary of XL Catlin, we continue to exceed all of our integration targets and are seeing new opportunities aligned with our global reach and market relevance.”
Highlights:
- Operating net income of $103.4 million, or $0.35 per share, for the quarter on a fully diluted basis
- Net income attributable to ordinary shareholders, and net income attributable to ordinary shareholders excluding the impact of the GreyCastle Life Retro Arrangements, of $21.9 million and $104.3 million, respectively, for the quarter
- P&C combined ratio of 92.5% for the quarter compared to 88.9% in the prior year quarter
- Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums in the quarter of$52.8 million, compared to $14.7 million in the prior year quarter
- Integration costs related to the combination with Catlin Group Limited ["Catlin"] totaled approximately $55.0 million in the quarter
- Earnings in the quarter from affiliates were $8.1 million, compared to $58.0 million in the prior year quarter, due primarily to the impact of continuing market volatility on the portfolio and the sale of ARX Holding Corp. in Q2 2015
- Fully diluted tangible book value per ordinary share of $32.62 at March 31, 2016, an increase of $1.10, or 3.5%, from December 31, 2015
- Share buybacks totaled approximately 10.0 million shares or $355.1 million during the quarter
- Annualized operating return on average ordinary shareholders’ equity excluding and including average unrealized gains and losses on investments was 3.9% and 3.5% respectively.Excluding integration costs these return rates would be 5.9% and 5.4%, respectively
