XL Group Plc.’s approximately $4 billion deal to buy Catlin Group Ltd. closed on May 1. Beginning Monday, May 4, the global insurer and reinsurer debuts a new name: XL Catlin.
“After nearly two years of discussions and several months of intense planning, we are extremely pleased to officially be one company,” XL CEO Mike McGavick said in prepared remarks. “Starting today, we are a larger, stronger, more capable firm, with a leading presence in the global specialty insurance and reinsurance markets.”
Both companies announced the initial merger deal in January. Now that they’re a blended company, plans call for a global advertising campaign and a new public website. The XL Group moniker will remain as the parent company name.
As previously announced, McGavick will continue in the CEO role with the combined company. Catlin Group founder and CEO Stephen Catlin remains on as executive deputy chairman, and will also serve on XL Catlin’s board of directors.
Catlin said that creating XL Catlin allows for “greater scale, capacity and an expanded platform of products and services.”
“I am excited to be taking this next step with XL,” Catlin said.
On April 29, XL announced its 2015 first quarter financial results, the last before its merger with Catlin.
For the quarter, XL booked $32.3 million in net income, or $0.14 per fully diluted share. In the 2014 first quarter, net income landed at $255.7 million, or $0.91 per share. XL attributed the drop, in part, to the decision last May to cede the majority of its life reinsurance business to XLLR.
XL’s P&C operations produced a combined ratio of 88.9, versus 89.7 in the 2014 first quarter.
For Q1, Gross premiums written came in at $2.48 billion, net premiums written were $1.8 billion and net premiums earned were $1.31 billion, including prior year development and the impact of natural catastrophe losses. In the 2014 first quarter, gross premiums written, net premiums written and net premiums earned were $2.4 billion, $1.9 billion and $1.4 billion, respectively.
Out of $1.31 billion in net premiums earned in Q1, $357 million came from the reinsurance segment, with $962 coming from insurance.
Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums in the quarter are booked at $14.7 million, compared to $17.2 million in the year-ago quarter.
Net investment income for the quarter was $208 million, versus $233.2 million in the 2014 first quarter. XL blamed normal portfolio turnover combined with foreign exchange impacts for the dip.
Sources: XL Group, Catlin