XL Posts Strong First-Quarter Results

The combined ratio for XL's general insurance and reinsurance operations was 86.1, compared with 92.1 in the first quarter 2002.

XL's loss ratio was 60.9 in the first quarter this year with an expense ratio of 25.2, compared with a 63.2 loss ratio and a 28.9 expense ratio in the same period last year.

First-quarter gross premiums written for general operations were $3.0 billion, compared with $2.8 billion for the period last year. Net premiums written increased to $2.4 billion from $2.1 billion for the 2002 first quarter, while net earned premiums rose to $1.5 billion from $1.0 billion in the same period 2002.

Gross premiums written for life operations came to $111.3 million, compared with $38.5 million for the quarter in 2002. Net premiums written for life operations in the first quarter were $97.3 million compared with $37 million in the first quarter of 2002, and net earned premiums were $92.8 million in the first quarter compared with $39.2 million in 2002.

Net investment income from general operations was $156.6 million in the first quarter of 2003, compared with $155.6 million in 2002′s first quarter. First quarter net investment income from life operations was $35.3 million compared with $15.5 million for the same quarter last year.

"We had a very strong first quarter with excellent underwriting results reflected in our combined ratio of 86.1 and net earned premium growth of 42 percent in our general insurance and reinsurance operations," said Brian M. O'Hara, president and chief executive officer of XL, in a statement. "Our net operating income return on ordinary shareholders' equity exceeded 16 percent and book value per ordinary share increased to $46.09, a record level for XL."