Loading LiveCycle Banners.
  1. News Articles
  2. Related News Articles
News Article Details

XL Group's First-Quarter Sees Red

Source:: MarketWatch

Back | A- | A+
 Email This     Print     Subscribe

Posted on 04 May 2011

XL Group PLC reported a first-quarter loss based on natural catastrophe losses of $387.4 million, net of reinstatement premiums, in its property and casualty operations.

The company last month estimated its total losses from March's devastating earthquake and tsunami in Japan would range from $190 million to $290 million, on top of an estimated $70 million to $85 million in losses it already anticipated from a New Zealand earthquake. The period also included severe floods in Australia.

As a result, combined ratio--the percentage of premiums paid out on losses and expenses--jumped to 126% from 101% in the P&C business. Excluding the disasters and prior-year development, the ratio would have risen to 101% from 93.1%.

Despite the disasters' hit to the bottom line in the latest quarter, analysts have noted that their trauma will likely spur more demand for insurance and reinsurance. For a long stretch, relief from massively damaging events and economic pressure increased the frequency that people skipped coverage.

In prior quarters lately, XL's results have improved thanks to investment recovery, as well as higher premiums more recently.

The company posted a loss of $227.3 million, or 73 cents a share, compared with a year-earlier profit of $143.9 million, or 37 cents a share. Its operating results, which strip out investment gains and losses as well as other items like foreign-exchange effects, swung to a 52-cent loss per share from a 44-cent profit.

Net premiums written increased 7.4% to $1.71 billion. Premiums earned in the property-and-casualty operations also rose 0.6% to $1.27 billion.


Post a Comment
If you are a Storefront / Tradingfloor user, click here to login.
Note: As a guest user, please fill out the form below to post a comment.
Post your comments here.
Name :
Email Address :
Captcha :
Comments :
Character left : 2000