Multinational insurance company XL Group has posted a net loss of $1.04bn for the third quarter of this year, compared to net income of $70.6m in the prior year quarter.
The company has attributed these losses mainly to the recent natural calamities, particularly from the Hurricanes Harvey, Irma and Maria.
XL Group CEO Mike McGavick said: "The natural catastrophes that mark the third quarter bring a unique devastation to those impacted and we continue the important work of helping our clients rebuild in these times of need.
“The financial impact of these events was, of course, significant to our financial results in the quarter. At the same time, excluding these events, our underlying results show continued progress as demonstrated by improvement in the ex-cat P&C combined ratio, insurance combined ratio and insurance loss ratio versus the prior year quarter.”
As per XL, Hurricane Irma was the most expensive one resulting in $674m losses, while Harvey and Maria resulted in $399m and $345m, respectively.
Net investment income for the quarter was $202.8m, compared to $209.8m in the prior year quarter. Net investment income for the quarter, excluding the Life Funds Withheld Assets was $172m, compared to $170.8m in the earlier year quarter.
In the third quarter, XL’s property/casualty combined ratio had fallen to 146.9% from 93.1%, a year ago. Until this September end, the ratio was at 111.6%. On the other hand, net premiums had increased by 0.9% over a one year period to $2.33bn.
Few days ago, XL Group had acquired a 20% stake in Indian insurance company Mahindra Insurance Brokers (MIBL) for $200m. MIBL serves rural India by protecting their assets and loans taken to buy farming tractors and vehicles.
Image: XL Group attributes losses to the recent Hurricanes. Photo: Courtesy of Kittikun Atsawintarangkul/FreeDigitalPhotos.net.