XL Group’s annual earnings topped $1 billion for 2013, up more than 60 percent from the previous year.

The global business insurer’s CEO Mike McGavick described it as “another year of solid progress”.

Net income for the year was $1.1 billion, or $3.63 per share. Fourth-quarter profit was $300.8 million, while operating net income was $287 million, or $1 per share, comfortably beating the 82 cents estimate of analysts polled by Yahoo Finance.

“Year-over-year, we grew property and casualty (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,” Mr McGavick said.

“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.”

Underwriting profitability improved, aided by a sharp fall in catastrophe losses. The P&C combined ratio — reflecting the proportion of premium dollars spent on claims and expenses — 92.5 percent last year compared to 96.3 percent in the prior year.

For the fourth quarter, XL’s natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums were $94.3 million compared to $351.8 million in the prior year quarter, during which Superstorm Sandy sparked heavy claims.

Net investment income for the quarter was $240.8 million, compared to $245.0 million in the prior year quarter.

XL said operating expenses in the fourth quarter were 9.7 percent higher than in the prior-year quarter, largely because of increases in compensation costs driven by growth initiatives in the company’s Insurance segment and performance-based compensation adjustments, as well as spending on infrastructure improvements. For the full year 2013, operating expenses were 3.3 percent higher than in 2012.

Operating return on ordinary shareholders’ equity, excluding unrealised gains and losses on investments was 12.5 percent annualised for the quarter and 10.3 percent

for the full year.

Fully diluted tangible book value per ordinary share was $33.86 at December 31, 2013, an increase from September 30, 2013 of $0.90, or 2.7 percent, and an increase of $0.51, or 1.5 percent from December 31, 2012.

XL, which is domiciled in Ireland, but maintains substantial operations in Bermuda, spent $150 million to buy back 4.9 million of its own shares at an average

price of $30.85 per share. A further $275 million of ordinary shares remained available for purchase under XL’s previously announced $850 million share buy-back programme by the end of last year.