Insurance and reinsurance giants XL today posted operating earnings of $194.4 million for the first quarter of the year — more than $44 million down on the same time last year.

Earnings per share were 75 cents a share and book value stood at $37.60 at the end of the first quarter, 81 cents up from the end of 2014.

Mike McGavick, CEO of the Dublin-based firm, said XL had produced strong results while it continued planning for its merger with competitor, Bermuda-based Catlin.

He added: “While nearing what we hope will be a successful close to the transaction, we continue to focus on delivering our 2015 plan while being incredibly excited about what XL Catlin will achieve together.”

The firm said lower levels of affiliate and life reinsurance income had been the major contributor to the profits drop.

Net investment income at $208.5 million for the first quarter was also down from the $233.2 million recorded for the same period last year and also a drop from $226.2 million for the final quarter of 2014.

But the firm’s report said: “The overall decline is primarily due to the normal turnover of the portfolio combined with foreign exchange impacts.”