Reinsurance
Product Family
Claims
Risk Consulting
Media Center
Get In Touch

•  Operating net income1 of $154.6 million, or $0.53 per share, and net income of $135.6 million, or $0.47 per share, for the quarter on a fully diluted basis

•  Operating net income1 of $656.1 million, or $2.23 per share, and net income of $759.1 million, or $2.57 per share, for the year to date on a fully diluted basis

•  P&C combined ratio of 95.0% for the quarter, compared to 92.2% in the prior year quarter, and a year to date P&C combined ratio of 92.2% compared to 92.7% in the prior year period

•  Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums of $85.0 million compared to $32.0 million in the prior year quarter

•  Annualized operating return on ordinary shareholders' equity2 excluding and including unrealized gains and losses on investments were 6.8% and 6.2%, respectively, for the quarter and 9.6% and 8.6%, respectively, for the year to date

•  Fully diluted tangible book value per ordinary share3 of $32.96 at September 30, 2013, an increase from June 30, 2013 of $0.51 or 1.6%, and a decrease of $0.39, or 1.2%, from December 31, 2012, including a decrease in unrealized investment gains, net of tax, of $665.5 million

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

DUBLIN, Ireland, Oct. 30, 2013 - XL Group plc ("XL" or the "Company") (NYSE: XL) today reported its third quarter 2013 results.

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

"Our year to date Insurance segment accident year combined ratio ex-cat of 96.1% and loss ratio ex-cat of 65.6% are the best results since 2007 on the same basis. And our nine-month P&C combined ratio of 92.2% is 0.5 percentage points better than the same period last year. While we are encouraged by 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 insurance 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 at hand."

Highlights

Three and Nine Months Ended September 30

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

Three Months Ended

Nine Months Ended

September 30

September 30

(Unaudited)

(Unaudited)

2013

2012

2013

2012

Net income (loss) attributable to ordinary shareholders

$

135,648

$

171,902

$

759,136

$

569,684

Per ordinary share - fully diluted

$

0.47

$

0.56

$

2.57

$

1.82

Operating net income (loss)

$

154,628

$

188,038

$

656,087

$

575,213

Per ordinary share - fully diluted

$

0.53

$

0.61

$

2.23

$

1.84

  • Net income and operating net income of $135.6 million and $154.6 million, respectively, compared to net income and operating net income of $171.9 million and $188.0 million, respectively, in the prior year quarter decreased, primarily due to natural catastrophe losses, as well as higher levels of medium to large losses in Insurance, in the current quarter as compared to the prior year quarter. For the nine months ended September 30, 2013, however, the P&C combined ratio of 92.2% remains lower than for the same period in 2012 when it was 92.7%.
  • Net investment income for the quarter was $237.9 million, compared to $239.5 million in the prior year quarter and $232.5 million in the second quarter of 2013.
  • Net income from investment fund and investment manager operating affiliates was $15.1 million in the quarter, compared to income of $8.6 million in the prior year quarter. The increase was primarily due to a solid quarter from our investment manager affiliates.
  • Fully diluted tangible book value per ordinary share increased by $0.51 from the prior quarter driven by net income growth combined with the benefit of share buybacks and an increase in net unrealized gains on investments.
  • During the quarter, the Company purchased 4.8 million ordinary shares for $150.0 million at an average price of $31.03 per share, which was accretive to fully diluted tangible book value per ordinary share by $0.03.  At September 30, 2013, $425.0 million of ordinary shares remained available for purchase under the Company's previously announced $850 million share buyback program.

P&C Operations - Three and Nine Months Ended September 30

(U.S. dollars in thousands)

Three Months Ended

Nine Months Ended

September 30

September 30

(Unaudited)

(Unaudited)

2013

2012

2013

2012

Gross premiums written

$

1,609,840

$

1,576,231

$

5,958,926