XL Sees Significant 3-Q Improvement
NU Online News Service, Nov. 1, 10:36 a.m. EST?XL Capital reported significant improvement for the third quarter compared with 2001, and said it is well positioned to take advantage of the continuing hard market next year.
For the third quarter, the Hamilton, Bermuda-based insurer reported a combined ratio of 91 percent compared to 233.3 percent for 2001. For the nine months, combined ratio stood at 97.1 percent for 2002 compared to 145.2 percent last year.
Net income increased $1.03 billion in the third quarter ending Sept. 30, rising from a loss of $840 million in 2001 to $186.44 million. Net income per share increased to $1.34 from a loss of $6.70 last year. Revenues increased 170 percent, or $1.5 billion, going from $868 million in 2001 to $2.34 billion.
For the nine months, XL reported net income has risen $1.2 billion, going from a loss of $492.5 million in 2001 to $184.2 million. Net income per share rose from a loss of $3.93 to $1.32 a share. Revenues are up 92 percent, going from $2.43 billion to $4.67 billion.
The increase for the nine months was on gross premiums written of $7.05 billion compared to $3.35 billion for the same period last year. For the quarter, gross premiums written stood at $2.65 billion compared to $1.19 billion last year.
Brian M. O'Hara, president and chief executive officer for XL, said in a statement that he is confident the hard market would remain "for some time" and that the company is "well positioned to capitalize on the long overdue price increases and improvements in terms and conditions currently being achieved in virtually all lines of business."
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