XL Group swung to a fourth-quarter profit on higher premiums earned, in part due to Hurricane Sandy, and lower expenses.The company posted a profit of $81.4 million, or 27 cents a share, compared with a loss of $515.5 million, or $1.62 share, a year earlier.Operating income was $38.9 million, or 13 cents a share, compared with a prior-year loss of 25 cents.Results were better than expected, with analysts expecting an operating loss of 35 cents a share.XL CEO Mike McGavick said the fourth-quarter and full-year results clearly demonstrate XL’s progress “particularly in our delivery of solid earnings and growth in book value”.He continued: “Despite the meaningful impact of Storm Sandy, the broad and painful effects of which we are all aware, XL produced both net and operating income in the quarter and once again demonstrated our dedication to disciplined underwriting and enterprise risk management.“The full year results also illustrated the steady improvement of our Insurance segment and the continuing solid performance of our reinsurance segment. We are committed to maintaining this progress.”Net premiums written increased 19 percent to $1.34 billion while premiums earned in the property-and-casualty rose 11 percent to $1.54 billion.Catastrophe losses, net of reinsurance and reinstatement premiums and mostly related to superstorm Sandy, were $351.8 million in the latest period, up from $194.9 million a year earlier.The company has also benefited in recent quarters from increases in premiums earned in its property-and-casualty operations.In the fourth quarter, XL’s combined ratio — the percentage of premiums paid out on losses and expenses — slipped to 89.3 percent from 99.1 percent in P&C.Total expenses fell 15 percent.XL said operating expenses were lower than the prior-year quarter largely due to the timing of costs associated with infrastructure and organisational initiatives “partially offset by slightly increased compensation costs due to added headcount as a result of business expansion”.For the full year, XL saw a profit of $651.1 million, or $2.10 a share, compared to a loss of $474.7 million, or $1.52, in 2011.Shares rose 12 cents to close at $27.84. The stock is up 31 percent over the past 12 months.