Stable XL boosts profits by 62%

XL Group posted improved profits for 2013 despite stable premium growth largely thanks to lower losses which were also reflected in an improved combined ratio.

The company made a net profit of $1.1 billion for the year compared with $651 million the year before – an increase of 62 percent. The net premiums written by its property/casualty operations were almost stable at $5.9 billion. Its combined ratio for the year improved to 92.5% compared with 96.3 percent in the prior year.
“2013 was another year of solid progress, strengthened results and improvement for XL. Year-over-year, we grew P&C underwriting profit, improved both our calendar and accident year P&C combined ratios and achieved double digit operating return on equity performance, ex-unrealised gains and losses,” said Mike McGavick , chief executive of XL Group.

“Our positive assessment regarding 2013 is tempered slightly by a level of large property losses experienced in the quarter, primarily written in North America. But, as we have always taken a long term view as we work toward our goals, we are pleased with what we have achieved, and feel very good about our positioning for the future.”