XL Catlin profit dives on catastrophe lossesPosted On: Feb. 2, 2018 1:15 PM CST
Catastrophe losses dented 2017 fourth-quarter profit for XL Group Ltd., which does business as XL Catlin, leading to a 90.5% drop in net income to $28.8 million compared with the same quarter in 2016.
For the full year, the insurer reported a $560.4 million loss, compared with 2016’s $441 million in net income, according to the its earnings statement released Thursday.
XL Catlin reported $315.2 million of pretax natural catastrophe losses net of reinsurance, reinstatement and premium adjustments and redeemable noncontrolling interest for the quarter. This compares with $246.1 million for the comparable period in 2016.
The company reported $2 billion in catastrophe losses for the full year, compared with $636.3 million for 2016.
XL Catlin posted a 99% combined ratio for the 2017 fourth quarter, vs. a 94.8% combined ratio for the comparable quarter in 2016. For the year, the insurer reported a 108.3% combined ratio vs. 94.2% for 2016.
Net premiums written for the quarter increased 17.4% to $2.72 billion over the pi quarter. For the year, net premiums written totaled $10.67 billion, a 4.3% increase over 2016.
The year “was obviously characterized by severe natural catastrophes, and our results reflect the severe losses,” said CEO Mike McGavick, during Thursday’s earnings call. However, he said, “On an ex-cat basis, we feel good about the otherwise tough year.”
“We hear consistent feedback that we are at the early and firm edge of pushing for appropriate pricing,” he said also.