XL Group plc today reported its first quarter 2014 results.
Commenting on the Company s performance, Chief Executive Officer Mike McGavick said: "In the first quarter of 2014, XL produced one of the best quarters since the end of 2008. These results included a total P&C combined ratio of 89.7%, total underwriting profit of $145 million, and a loss ratio of 58.9% all of which demonstrate our continued broad-based improvement. This performance also included Insurance segment underwriting profit of $45 million and an Insurance accident year ex-cat combined ratio of 94.6% in the quarter. And the 76.3% combined ratio for Reinsurance is particularly satisfying given the difficult market conditions. All in, we like the way these results position us for 2014."
Net income and operating net income of $255.7 million and $238.6 million, respectively, for the quarter decreased compared to net income and operating net income of $350.8 million and $279.9 million, respectively, in the prior year quarter, primarily due to lower underwriting profit in the current quarter, partially offset by higher net income from investment funds and investment manager operating affiliates as compared to the prior year quarter. The P&C combined ratio for the quarter of 89.7% was 2.0 percentage points higher than in 2013, when it was 87.7%. Net investment income for the quarter was $233.2 million, compared to $246.5 million in the prior year quarter and $240.8 in the fourth quarter of 2013. Net income from investment fund and investment manager operating affiliates was $60.3 million in the quarter, compared to income of $50.7 million in the prior year quarter. The increase was primarily driven by strong results from our investment manager operating affiliates. Fully diluted tangible book value per ordinary share increased by $1.44 from the prior quarter to $35.30, driven by our net income and an increase in unrealized gain on investments net of deferred tax of $244.7 million combined with the benefit of share buyback activity, offset by the payment of dividends. In February 2014, the Company increased the share buyback program, authorizing the Company to buy back up to $1.0 billion of its ordinary shares. This authorization includes the approximately $200 million of ordinary shares that remained available for purchase under the program prior to the increase. During the quarter, the Company purchased 5.8 million ordinary shares for $175.0 million at an average price of $30.19 per share, which was accretive to fully diluted tangible book value per ordinary share by $0.14. At March 31, 2014, $892.6 million of ordinary shares remained available for purchase under share buyback program.