XL Group, a Bermuda-based reinsurer, has reported a net income attributable to ordinary shareholders of $191.8m, or $0.56 per share for the second quarter of 2010, compared to $79.9m or $ 0.23 for the same quarter of 2009.
The operating income was $242.6m in the second quarter, compared to $291.4m in the same quarter last year.
The reported gross premiums written for the second quarter of 2010 was $1,507m, compared to $1,501m for the same corresponding year.
The total revenues for the second quarter of the 2010 was $1,552m, compared to $1,725m for the same previous year 2009.
Mike McGavick, CEO of XL Group, said: We are pleased to report another quarter of solid operating results. Our P&C operations delivered a healthy combined ratio of 92.2% which includes 6.8 points of favorable prior period development. The current accident year combined ratio for our P&C operations was 99% in the quarter and our top-line remains strong.
Our operating income was $242.6m in the second quarter, compared to $291.4m in the same quarter last year. Included in operating income was a net charge of $23.5m for the previously announced termination of the EIB guarantees. This termination continues our progress in eliminating distractions from our core P&C focus.
We grew our book value per ordinary share for the fifth consecutive quarter, this time by 5%, driven by both investment portfolio gains and net income. Our tangible book value per ordinary share increased 6% during the quarter to $25.30. Total shareholders’ equity was $10.5bn at June 30, 2010, an increase of 5% in the quarter and 11% since the end of 2009.
Our investment portfolio’s favorable mark to market of $349m this quarter was driven by interest rate declines even as corporate credit spreads widened. Our repositioned P&C portfolio weathered the turmoil in the credit markets, as we had limited exposure to the impacted Euro governments.
Annualized operating return on ordinary shareholders’ equity was 10.5%. Both our investment income and P&C operations contributed to these gains.
We believe these results demonstrate our continued commitment to disciplined underwriting and vigorous risk management despite anemic pricing conditions.