XL reports profits

XL Group plc reported its fourth quarter and full year 2010 results.

Mike McGavick, CEO said: “XL’s fourth quarter results demonstrated progress in several key elements driving shareholder value.

“Our P&C operations’ 91.4 per cent combined ratio benefited from outstanding performance from our Reinsurance segment, positive prior year development and sustained operating efficiency.

“We received our license to offer insurance in China and added experienced teams in lines we believe offer prospects for strategic growth.

“Our on-going risk management discipline resulted in our catastrophe losses being at the low end of the expected range, with only modest changes to our initial estimates for the New Zealand earthquake.

We reduced exposures to non-core holdings, and we continued to return excess capital through share buybacks.

“We believe XL is in a solid position to meet the challenges of current market conditions and the opportunities that will come as conditions improve.”

The company also announced that fourth quarter natural catastrophe losses include $23.3 million related to flooding in Australia. Based on preliminary data available, the company’s first quarter losses related to flooding in Australia are expected to range between an additional $75.0 million and $95.0 million.

The company’s estimates are based on its review of individual treaties and policies expected to be impacted and client data received to date.