XL Catlin profits take a massive hit

Catastrophe losses dented 2017 fourth-quarter profit for XL Group Ltd., which does business as XL Catlin, leading to a 90.5 percent drop in net income to $28.8 million compared with the same quarter in 2016.

According to the its earnings statement released last week, the insurer reported a $560.4 million loss for the year.

XL Catlin reported $315.2 million of pretax natural catastrophe losses net of reinsurance, reinstatement and premium adjustments and redeemable noncontrolling interest for the quarter. This compares with $246.1 million for the comparable period in 2016.

The company reported $2 billion in catastrophe losses for the full year, compared with $636.3 million for 2016.

For the year, net premiums written totaled $10.67 billion, a 4.3 per cent increase over 2016.

The year “was obviously characterized by severe natural catastrophes, and our results reflect the severe losses,” said CEO Mike McGavick. However, he said, “On an ex-cat basis, we feel good about the otherwise tough year.”