XL CEO McGavick: Q4 and Year Helped By Record Low Catastrophe Results

February 2, 2015
Mike McGavick, CEO XL Group
Mike McGavick, CEO XL Group

As XL Group PLC gears up to buy Catlin Group Ltd. for $4.2 billion later this year, it can celebrate a 2014 fourth quarter and year with healthy results generated on its own.

XL’s insurance arm produced a 2014 combined ratio of 94.4. Its reinsurance arm achieved a 73.3 combined ratio for the year, according to the company. Both count as stellar performances compared to recent years, CEO Mike McGavick said.

“Those results were helped, in part, by one of the lowest catastrophe years we have seen in years,” McGavick noted in prepared remarks. “To build on our success we intend to continue developing and delivering outstanding products and services to our current and new markets.”

One blip: Net income for Q4 came in at $139.5 million, or $1.12 per fully diluted share. That’s less than half of the more than $300 million in net income, or $1 per fully diluted share, produced in the 2013 fourth quarter. XL Group said this number was attributable to losses tied to investments supporting a life retrocession arrangement.

Here are XL Group’s earnings highlights:

Source: XL Group