XL Group says favorable reserve development, investment income and increased pricing overcame $134 million in second-quarter catastrophe losses to result in net income of $272.7 million.
Second-quarter profit was 18.9 percent higher than the same period a year ago.
Catastrophe losses were due to flooding in Europe and Canada as well as tornadoes and hail in the U.S., says XL in a conference call on earnings.
Weather losses added 9.3 points to the second-quarter combined ratio, which came in at 93.8 compared to 90.8 a year ago during the same time.
Reports say XL is exposed to the oil train accident in Canada. CEO Michael McGavick said the company could not comment specifically on the event, but later during the call Gregory Hendrick, head of insurance operations, said the average size of a policy is $32 million.
Losses during the quarter were offset by $119 in favorable prior-year reserve development and a net realized gain on investments of about $41 million, compared to a loss of $12.4 million a year ago.
Additionally, McGavick says XL has seen "positive rate in 19 of 22 of our insurance businesses."
Increased premiums in most North American lines and selected international lines over the last 12 months in part drove a 10.3 percent increase in second-quarter net premiums earned, to nearly $1.5 billion.
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