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•  Net income of $272.7 million, or $0.93 per share, and operating net income1 of $221.6 million, or $0.75 per share, for the quarter

•  P&C combined ratio of 93.8% compared to 90.8% in the prior year quarter

•  Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums of $134.1 million compared to $60.6 million in the prior year quarter

•  Annualized operating return on ordinary shareholders' equity2 excluding and including unrealized gains and losses on investments were 9.7% and 8.7%, respectively, for the quarter

•  Fully diluted tangible book value per ordinary share3 of $32.45 at June 30, 2013, a decrease of $0.90, or 2.7%, from December 31, 2012, including a decrease in unrealized investment gains of $827.0 million

•  Share buybacks totaled 4.8 million shares for $150.0 million during the quarter

XL Group plc ("XL" or the "Company") (NYSE: XL) today reported its second quarter 2013 results.

Commenting on the Company's performance, Chief Executive Officer Mike McGavick said:

"While we -- like the entire sector -- enjoyed the benefits of the low levels of catastrophes and low levels of large losses in the first quarter, the second quarter 2013 was quite different. Results were impacted especially by a number of natural catastrophe losses. Yet we feel the same about both the first and second quarter, as we are pleased with our progress on strengthening our underwriting business and adding to our leadership. We are at the same time excited with our progress in the first half of 2013, and reminded that we have room to improve."

Highlights

Three months ended June 30

(U.S. dollars in thousands, except per share amounts)

Three Months Ended

June 30,

(Unaudited)

2013

2012

Net income (loss) attributable to ordinary shareholders

$

272,698

$

221,154

Per ordinary share - fully diluted

$

0.93

$

0.71

Operating net income (loss)  

$

221,591

$

221,944

Per ordinary share - fully diluted  

$

0.75

$

0.71

  • Operating net income for the quarter of $221.6 million is in line with operating net income of $221.9 million in the prior year quarter as higher levels of catastrophe losses in the current year were largely offset by higher affiliate earnings than in the prior year quarter.
  • Net income for the quarter of $272.7 million, compared to net income of $221.2 million in the prior year quarter, primarily due to higher net realized gains on investments of $41.0 million compared to losses of $12.4 million in the prior year quarter.
  • Net investment income for the quarter was $232.5 million, compared to $262.6 million in the prior year quarter and $246.5 million in the first quarter of 2013.  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 $73.6 million in the quarter, compared to income of $17.1 million in the prior year quarter. Strong alternative portfolio returns were driven by positive markets over the past six months.
  • During the quarter, the Company purchased 4.8 million shares for $150.0 million at an average price of $30.97 per share, which was accretive to fully diluted book value per ordinary share by $0.04. At June 30, 2013, $575.0 million of shares remained available for purchase under the Company's previously announced $850 million share buyback program.
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P&C Operations

Three months ended June 30

(U.S. dollars in thousands)

Three Months Ended

June 30,

(Unaudited)

2013

2012

Gross premiums written  

$

1,944,170

$

1,763,452

Net premiums written  

$

1,459,972

$

1,347,277

Net premiums earned  

$

1,488,497

$

1,400,970