XL reports $279.3M 2nd-quarter loss after selling life reinsurance business

XL Group P.L.C. reported a net loss of $279.3 million for the second quarter of 2014, reflecting a large after-tax loss on the sale of its life reinsurance operation, the Dublin-based insurer said.

The company said Monday that it posted a $621.3 million loss after selling its life reinsurance subsidiary. XL announced in May that it was selling its XL Life Reinsurance Ltd. unit for $570 million

XL said its net written property/casualty premiums remained virtually flat at $1.43 billion while its combined ratio was 88.3% compared with 93.8% in the prior-year quarter.

For the first six months of 2014, the company posted a net loss of $23.5 million, compared with net income of $623.5 million during the first two quarters of 2013, while net written premiums decreased 4.3% to $3.35 billion compared with a year earlier. The six months combined ratio improved to 89.0% from 90.8%.

“Through the first half of 2014, XL continued to demonstrate solid financial results and strong positioning,” said XL CEO Mike McGavick in a statement. “In the second quarter of the year, XL produced a total P&C combined ratio of 88.3%, total underwriting profit of $168 million and a loss ratio of 57.6%.”

“This quarter also included the completion of our previously announced life transaction, covering the vast majority of our life reinsurance business,” he added.