• Operating net income1 of $279.9 million, or $0.93 per share, for the quarter• Net income of $350.8 million, or $1.17 per share, for the quarter• P&C combined ratio of 87.7% compared to 95.3% in the prior year quarter• Annualized operating return on ordinary shareholders' equity2 of 10.7% • Annualized operating return on ordinary shareholders' equity2 excluding unrealized gains and losses on investments of 12.3% • Fully diluted tangible book value per ordinary share3 of $34.05 at March 31, 2013, an increase of $0.70, or 2.1%, from December 31, 2012• Share buybacks totaled 8.0 million shares for $223.3 million during the quarter
XL Group plc ("XL" or the "Company") (NYSE: XL) today reported its first quarter 2013 results.
Commenting on the Company's performance, Chief Executive Officer Mike McGavick said:
"In the first quarter, XL once again delivered solid results -- the kind of results we seek to routinely produce. While none of us are ready to declare victory, particularly with the benefit of a quiet catastrophe and large loss quarter, such results make us all the more driven to deliver consistent, quality performance, even as catastrophes and losses normalize. We are pleased with our progress and are maintaining our diligent, grinding work."
Three months ended March 31
(U.S. dollars in thousands, except per share amounts)
Three Months Ended
Net income (loss) attributable to ordinary shareholders
Per ordinary share - fully diluted
Operating net income (loss)
Per ordinary share - fully diluted
Operating net income for the quarter of $279.9 million, compared to operating net income of $165.2 million in the prior year quarter, primarily due to improved underwriting results in the current quarter, including lower levels of catastrophe and large risk losses, combined with higher affiliate earnings than in the prior year quarter.
Net income for the quarter of $350.8 million, compared to net income of $176.6 million in the prior year quarter, primarily due to operating income improvements combined with higher net realized gains on investments and derivatives, than in the prior year quarter.
Net investment income for the quarter was $246.5 million, compared to $265.2 million in the prior year quarter and $245.0 million in the fourth quarter of 2012. The decline against the prior year quarter was primarily due to lower yields as a result of lower reinvestment rates.
Net income from investment fund and investment manager operating affiliates was $50.7 million in the quarter, compared to income of $30.0 million in the prior year quarter. Strong alternative portfolio returns were driven by excellent returns from our managers supported by positive markets over the past six months.
Net realized investment gains for the quarter of $36.5 million, compared to gains of $20.8 million in the prior year quarter.
Fully diluted tangible book value per ordinary share increased by $0.70 from the prior quarter driven by net income growth combined with the benefit of share buybacks, partially offset by net unrealized losses on investments.
During the quarter, the Company purchased 8.0 million shares for $223.3 million at an average price of $27.89 per share, which was accretive to fully diluted tangible book value per ordinary share by $0.20. At March 31, 2013, $725.0 million of shares remained available for purchase under the Company's previously announced $850 million share buyback program.