XL CEO ‘pleased’ by 588% rise in Q2 income

XL Group has announced that its second quarter 2017 income came to $301.6 million, a rise of 588 percent from the $43.8 million it reported for the same period of 2017.

“In the second quarter we remained focused on disciplined underwriting and are pleased with our overall results,” said CEO Mike McGavick. “Also in the quarter we generated positive investment returns, continued to capture efficiencies as an organisation and actively managed our capital. We remain committed to fully delivering the value of the franchise we have built.”

The Q2 result takes the company to a net income figure for the first six months of the year of $454.5 million, up 592.1 percent on the $65.7 million it reported as net income for the first six months of 2016.

One reason for the substantial increase was that XL reported catastrophe pre-tax losses net of reinsurance and reinstatement premiums for the quarter of $92.1 million (3.7 points to the loss ratio), significantly down on the $240.1 million (9.8 points to the loss ratio) figure that it reported in the same quarter of 2016.

Gross written premiums for the quarter increased slightly from $3.53 billion in the second quarter of 2016 to $3.55 billion for the same period of 2017. Gross written premiums for the first half of 2017 totalled $8.2 billion, a rise on the $7.9 billion it wrote in the first six months of 2016.

Integration costs related to the acquisition of Catlin Group, completed on May 1, 2015, totalled approximately $39.1 million for the quarter, compared to $52.1 million in the prior year quarter. Integration costs related to the Catlin acquisition were completed in the second quarter of 2017.

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