Reinsurance giants XL yesterday posted a net income of $135.6 million for the third quarter of the year, figures from the company revealed.

But the firm also recorded natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums of $85 million compared to $32 million for the same period in 2012.

XL chief executive officer Mike McGavick said: “While we are encouraged byt 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.

“Overall, looking at the first nine months of 2013 and particularly at having the lowest reinsurance ex-cat loss ratio in six years, we find validation in the steps we have taken.

“We remain confident that we are on the right track and are focused on the work in hand.”

The operating net income for the quarter totalled $154.6 million, or 53c per share, while the net income of $135.6 million equated to 47c per share.

Annualised operating results for the third quarter on ordinary shareholders’ equity, excluding and including unrealised gains and losses on investments, were 6.8 percent and 6.2 percent respectively.

The tangible book value per ordinary share for the quarter increased 51c to $32.96 compared to the second quarter of the year — a 1.6 percent increase.

Share buy-backs for the period totalled 4.8 million ordinary shares, which cost $150 million.