XL’s McGavick hails ‘best results since 2007’ as profit rises 33%

Global insurance group XL has made a net profit after tax of $759.1m (£472.9m) in the first nine months of 2013, up 33% on the $569.7m it made in the same period last year.

The group’s non-life insurance and reinsurance division reported a nine-month 2013 underwriting profit of $349.6m, a 14% improvement on the $306.8m made in the first nine months of 2012.

XL’s combined operating ratio improved by 0.5 percentage points to 92.2% (First nine months of 2012: 92.7%).

The improvement comes despite a 21% profit drop in the third quarter of 2013 alone to $135.6m (Q3 2012: $171.9m). The third quarter combined ratio increased to 85% from 92.2%.

The third-quarter drop was caused by natural catastrophe losses and a higher level of medium to large losses in the insurance division.

‘Best since 2007’

XL chief executive Mike McGavick was particularly pleased with the performance of the insurance segment over the first nine months of 2013.

He said: “Our year to date Insurance segment accident year combined ratio ex-cat of 96.1% and loss ratio ex-cat of 65.6% are the best results since 2007 on the same basis. And our nine-month P&C combined ratio of 92.2% is 0.5 percentage points better than the same period last year.”

However he added: “While we are encouraged by the progress, we have continuing work to do, and in the third quarter catastrophe and individual loss activity contributed to higher than desired quarterly accident year loss ratios.”