XL Group has reported 2011 results. Highlights are:
-Operating net loss of $79.6m, or $0.25 loss per share, for the quarter and operating net income of $89.5m, or $0.28 per share, for the full year, largely driven by significant natural catastrophe losses for the quarter and full year.
-Net loss of $515.5m, or $1.62 loss per share, for the quarter and $474.8m, or $1.52 loss per share, for the full year, largely driven by a non-cash goodwill impairment charge of $429m in the fourth quarter, in addition to significant natural catastrophe losses for the quarter and full year.
-Natural catastrophe losses net of reinsurance and reinstatement premiums of $194.9m recorded for the quarter, and $761.1m for the full year.
-P&C operations combined ratio of 108.2 for the quarter and 107.5 for the full year.
-Gross P&C premiums written for the year increased by 10.2% compared to the prior year, primarily driven by select new business, favourable pricing and foreign exchange movements.
-Fully diluted tangible book value per ordinary share of $28.36 at December 31, 2011, an increase of $1.18.
-Share buybacks during the quarter totaled 4.9 million shares for $99.9m.
Commenting on the company's performance, ceo Mike McGavick said
"XL was clearly impacted in 2011, like companies throughout the property and casualty industry, by a year that suffered from one of the largest aggregate worldwide catastrophe losses in history, including, most recently, the devastating Thailand floods. While we believe XL's catastrophe loss profile, relative to our peers, showed the effectiveness of our risk management process, we also again experienced an unacceptable level of non-catastrophe insurance losses in isolated underwriting areas. We have added new leaders and talented teams to these areas, and are sharply focused on delivering improved results. We will not shy away from our 2011 results, including a frustrating fourth quarter and full year 2011, and a significant non-cash charge to eliminate the insurance segment's goodwill reflecting continuing low valuations in our sector. But, we do want to ensure our results are viewed within the broader perspective of our goals and strategy.
In 2011, XL made significant progress executing our strategy and-although our actions have not yet taken hold in our financial performance-we are confident in the path we are on. Our reinsurance segment again contributed strong results amid improving pricing. Key insurance businesses such as our Professional and Specialty businesses continued their multi-year track records of excellence. We pursued deliberate, careful growth opportunities in China and Brazil and significantly strengthened our distribution approach. Our investment portfolio now closely reflects our P&C core, and we further reduced our life portfolio's exposure to turbulence in the European investment markets. We believe XL is well-positioned with operating and capital strength and we look forward to fulfilling our vision for XL and its shareholders."
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