XL Group says it took a 2011 fourth-quarter net loss of $515.5 million on a large impairment charge and catastrophe losses.
Catastrophe losses during the last quarter of 2011, net of reinsurance and reinstatement premiums, were $194.9 million—but the company's results were mainly driven by a non-cash goodwill-impairment charge of $429 million, says XL.
Explained during the company's earnings conference call, the impairment charge was due to continued low-market valuations and underperformance in the company's insurance segment.
"While we are frustrated, as we are sure investors are, with the time it takes for an insurance book to respond to medicine, we are unwavering in our faith that the right actions have been and are being taken," CEO Michael S. McGavick said during the call.
Results furthermore included a tax phenomenon that added $59 million to XL's quarterly operating loss of $79.6 million.
Net income for 2010's fourth quarter was $188.1 million.
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