NU Online News Service, Aug. 4, 12:12 p.m. EDT
XL Group plc reported a 2010 second-quarter net income of nearly $192 million, more than double the $80 million net income reported at the same point last year.
Property and casualty operations turned in a 92.2 second-quarter combined ratio, helped by $83 million of favorable prior year development. XL p&c reported a 93 combined ratio after last year's second quarter.
Overall, XL's combined ratio was 97.6 for the quarter, which was an improvement from 99.7 for the 2009 second quarter.
The second-quarter p&c loss ratio for the parent company of XL's various commercial insurers and reinsurers was 61.4 compared with 60.8 for the 2009 second quarter, impacted by losses of $27.2 million related to the Deepwater Horizon oil spill, the company said.
Chief Executive Officer Mike McGavick called pricing conditions "anemic."
Net premiums earned in p&c decreased 5.1 percent in the second quarter. Overall gross premiums were down 3.4 percent as XL walked away from new and renewal business due to market pricing, said David Dulcos, executive vice president, in a conference call. XL saw a pricing decline of 1.8 percent following a rise of 2.1 percent in the second quarter last year.
"Many of our clients are buying less insurance from an industry with more than enough capital to meet those needs," Mr. Dulcos said. "As a result, broad pricing pressure remains."
For the first half this year XL recorded $319.8 million in net income compared to $258.3 million after the first six months in 2009.
XL Group plc in July said it completed its re-domestication to change the parent holding company's place of incorporation to Ireland from the Cayman Islands.
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