Underwriting profit up for XL Group in third quarter

XL Group has reported an operating net income of $187.1 million for the third quarter of the year, up from $154.6 million in the same period of 2013, “primarily due to higher underwriting profit in the current quarter.”

Underwriting profit for P&C operations in the third quarter was $144.4 million, up from $76.9 million in the same period last year. For the first nine months of the year, underwriting profit reached $457 million, up from $349 million in the same period last year.

Gross premiums written for the company’s P&C operations in the third quarter totaled $1.6 billion, essentially unchanged over the prior year quarter.

Net premiums written, at $1.21 billion for the quarter, were down slightly over the third quarter of 2013, at $1.33 billion. Net premiums earned were also down, from $1.55 billion in the third quarter of 2013, to $1.45 billion in the same period this year.

The P&C combined ratio for the quarter was 90.1%, compared with 95.0% for the same quarter last year.

Net investment income for the quarter was $226.4 million, compared to $237.9 million in the prior year quarter and $232.8 million in the second quarter of 2014.

“While we note the relatively benign catastrophe activity so far this year, XL has produced solid across the board results with P&C underwriting profit and combined ratio well ahead of the prior year quarter,” company CEO Mike McGavick commented in a statement on the results.

“On a year to date basis as well, the third quarter continued a solid 2014, with both Insurance and Reinsurance underwriting profit exceeding last year’s results,” he noted.

“We’re proud of what XL is producing, particularly given the well-documented pressure on pricing and renewals,” McGavick noted.

“Even with the tough market conditions, we believe we are well poised to build on this progress, relying on the drive, innovation, and skill of our underwriters and global teams.”