XL reports profit hike in second quarter
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XL Group Ltd. reported a 5.8% increase in net income for the 2018 second quarter to $319 million, the company said in its earnings release issued after the market closed Tuesday.
Net premiums written increased 6.5% from the same quarter a year ago to $2.82 billion. Insurance premiums increased 10.8% to $1.93 billion, while reinsurance premiums decreased 1.7% to $889.7 million.
The company reported natural catastrophe pretax losses net of reinsurance, reinstatement and premium adjustments for the quarter of $76.8 million, compared with $92.1 million for the comparable period a year ago.
Net investment income decreased 7.9%, to $67.7 million.
The company’s combined ratio deteriorated to 95.8% from 92.3% for the comparable period a year ago.
“In the second quarter we have continued our progress toward a strong and diversified book, particularly as rate conditions improved across most lines,” said CEO Mike McGavick, in a statement. “Overall, we are pleased with the results and look forward to continuing to realize the full potential of what we have built when we become part of Axa Group.”
Axa S.A.’s deal to buy XL was announced in March.
For the first half, XL reported $471.6 million in net income, up 3.8%. Net written premiums for the first half increased 6.1%, to $5.97 billion. Insurance premiums increased 5%, to $3.4 billion, while reinsurance premiums increased 7.7%, to $2.56 billion.
Net investment income decreased 1.4%, to $123.7 million.
The company’s combined ratio for the first half deteriorated to 96.5%, from 93.3%.
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