XL profit falls to $28.3m

  • XL Catlin CEO Mike McGavick

    XL Catlin CEO Mike McGavick


XL Groupís profit for the fourth quarter dropped to $28.3 million, or 11 cents per share, a 90.5 per cent year-on-year decrease, after it suffered $315.3 million of pre-tax catastrophe losses.

It took a $100.5m non-recurring tax charge as a result of the US Tax Cuts and Jobs Act, which related to the revaluation of net deferred tax assets.

For the full year XL made a loss of $560.4 million, or $2.16 per share, compared to a profit of $441 million in 2016.

Pre-tax catastrophe losses jumped to $2 billion, up from $636.2 million the previous year.

Net premiums from property and casualty, an important metric, were $2.7 billion for the quarter, up from $2.3 billion. Operating net income was $116 million, or 45 cents per share.

Mike McGavick, chief executive officer, said: ďXLís fourth quarter and full year 2017 results were impacted by the severe natural catastrophes in the year.

ďAt the same time, we feel positive about where we are going due to some important factors including: our solid capital position, our progress made in our 2017 ex-catastrophe underlying results, the strength of our market relevance as demonstrated by our 8 per cent growth in gross written premiums year-over-year, and that we are seeing early signs of a return to realistic and sustainable rate.

ďAdditionally, with the benefit of learning from our 2017 catastrophe experience and seeing the early way in which the rate environment is reacting following the 2017 events, we have already made a series of adjustments to optimise the balance of risk and return, meaningfully enhancing our catastrophe exposure profile while keeping us a leading player in these businesses.

ďWe expect to make further adjustments as the market environment unfolds.Ē

Mr McGavick said XL Catlin continues to be a market leader in customer satisfaction and innovation, earning top recognition from JD Power, the Gracechurch survey and in Advisenís innovation index.

He said: ďAll of this taken together, as we look at our industry, we feel well positioned for what comes next.Ē

XL Groupís property and casualty combined ratio for the quarter was 99 per cent for the quarter, and 108.3 per cent for the year. Excluding previous year development and natural catastrophe losses, the ratios were 89.5 per cent and 90.2 respectively.

The company did not buyback any shares during the fourth quarter. The book value per share at the end of 2017 was $38.04, a decrease of 23 cents for the quarter and $2.29 for the year.

Ahead of the earnings release, XL Groupís shares closed in New York at $36.79, down five cents on the day.

You must be registered or signed-in to post comment or to vote.

Published Feb 1, 2018 at 6:53 pm (Updated Feb 1, 2018 at 11:45 pm)

XL profit falls to $28.3m

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    • "Your new year's resolutions for 2019"
    • Quit smoking
    • 4%
    • Quit drinking/drink in moderation
    • 7%
    • Do not drink and drive
    • 2%
    • Lose weight
    • 40%
    • Stop procrastinating
    • 22%
    • Drive with greater care
    • 2%
    • Other
    • 22%
    • Total Votes: 2607
    • Poll Archive

    Today's Obituaries

    eMoo Posts