XL Group reports Q2 net income of $272.7 million

XL Group plc has reported a net income of $272.7 million for the second quarter of the year, although results were impacted by the number of natural catastrophes during the period, the company said Monday.

That result was compared with $221.2 million in the prior year quarter, “primarily due to higher net realized gains on investments of $41.0 million compared to losses of$12.4 million in the prior year quarter,” the insurer said.

Natural catastrophe losses (pre-tax and net of reinsurance and reinstatement premiums) for the quarter were $134.1 million, compared with $60.6 million for the comparable quarter of 2012.

The company reported a net operating income for the quarter ending June 30 of $221.6 million, along with a property and casualty combined ratio of 93.8%, compared with 90.8% in the prior year quarter.

“While we — like the entire sector — enjoyed the benefits of the low levels of catastrophes and low levels of large losses in the first quarter, the second quarter 2013 was quite different,” XL’s CEO Mike McGavick noted in a statement on the results.

“Results were impacted especially by a number of natural catastrophe losses,” he said. “Yet we feel the same about both the first and second quarter, as we are pleased with our progress on strengthening our underwriting business and adding to our leadership. We are at the same time excited with our progress in the first half of 2013, and reminded that we have room to improve.”

P&C gross premiums written in the second quarter increased 10.2% over the prior year quarter to about $1.94 billion, XL reported. Net premiums written for the quarter totaled about $1.46 billion, compared with about $1.35 billion in the same quarter of 2012.

“The Insurance segment GPW increased 12.3% from the prior year quarter, as a result of new business in North American Primary Casualty and Construction, as well as new business in International Property lines combined with pricing improvements across most lines,” the company said.

“The increase in GPW for the Reinsurance segment of 4.3% was driven by new business in the whole account book in the Bermuda operation,” the insurer added.