XL reports little change in first-quarter income
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XL Group reported first-quarter 2018 income of $152.6 million, virtually flat from $152.8 million in the first quarter of 2017, the company said in its earnings release issued after close of markets Wednesday.
Net premiums written were up 5.8% to $3.16 billion from $2.98 billion in the same period a year ago.
Insurance premiums decreased by 1.8% to $1.48 billion from $1.51 billion a year ago while reinsurance premiums rose 13.6% to $1.67 billion from $1.47 billion a year ago.
Natural catastrophe pre-tax losses net of reinsurance, reinstatement and premium adjustments for the quarter fell 23.8% to $73.2 million from $96.1 million a year ago.
Net investment income for the first quarter was $218.5 million, up 9.0% from $200.5 million in the prior year quarter.
The company’s combined ratio deteriorated to 95.3% from 94.3% in the year-ago period.
“In the quarter, we grew gross premiums written more than 6% compared with the first quarter of 2017 and we continued to improve the insurance loss ratio excluding PYD [prior-year development] and the impact of catastrophe losses,” Chief Executive Officer Mike McGavick said in the statement.
“With respect to pricing, we are pleased to have achieved broad rate increases throughout our insurance and reinsurance portfolio, which will earn into our results over the rest of the year,” he added.
Mr. McGavick said XL saw a lower reinsurance margin in the quarter due largely to strategic initiatives including a shift in portfolio mix toward lower volatility and an increase in outward reinsurance protections.
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