XL Results Impacted By Natural Catastrophes
XL Group Ltd reported its fourth quarter and full year 2017 results, with net income attributable to common shareholders of $28.8 million, or $0.11 per fully diluted share, for the quarter, and net loss attributable to common shareholders of $560.4 million, or $2.16 per fully diluted share, for the full year.
The company noted a “non-recurring tax charge of $100.5 million related to the revaluation of the net deferred tax asset as a result of the reduced U.S. corporate income tax rate enacted under the U.S. Tax Cuts and Jobs Act was recorded against net income attributable to common shareholders this quarter.”
Their natural catastrophe pre-tax losses net of reinsurance, reinstatement and premium adjustments and redeemable non-controlling interest for the quarter were $315.2 million.
Commenting on the Company’s performance, XL’s Chief Executive Officer Mike McGavick said: “XL’s fourth quarter and full year 2017 results were impacted by the severe natural catastrophes in the year.
“At the same time, we feel positive about where we are going due to some important factors including: our solid capital position, our progress made in our 2017 ex-catastrophe underlying results, the strength of our market relevance as demonstrated by our 8 percent growth in gross written premiums year-over-year, and that we are seeing early signs of a return to realistic and sustainable rate.
“Additionally, with the benefit of learnings from our 2017 catastrophe experience and seeing the early way in which the rate environment is reacting following the 2017 events, we have already made a series of adjustments to optimize the balance of risk and return, meaningfully enhancing our catastrophe exposure profile while keeping us a leading player in these businesses. We expect to make further adjustments as the market environment unfolds.
“Throughout 2017 and clearly into 2018 we have shown that XL Catlin continues to be a market leader in customer satisfaction and innovation, earning, for the second straight year, Highest in Customer Satisfaction among large commercial insurers from J.D. Power, the top spot in the Gracechurch survey of the London Market, and first place in Advisen’s innovation index, among numerous other external recognitions. All of this taken together, as we look at our industry, we feel well positioned for what comes next.”
