NU Online News Service, Nov. 3, 3:02 p.m. EDT
Hamilton, Bermuda-based XL reported a 2010 third-quarter increase in net income while two other Bermuda-based insurers and reinsurers said net income was down for quarter.
XL's net income for the quarter was $77.5 million, compared to $11.4 million in the 2009 third quarter. Property and casualty operations had a combined ratio of 94.9 compared to 93.2 a year ago.
Included in the net income numbers were after-tax realized losses on investments of $71.9 million, compared to losses of $310.8 million for the quarter, and after-tax foreign exchange losses of $37.9 million, compared to after-tax foreign exchange gains of $13.8 million in the prior year quarter, XL said.
Chief Executive Officer Mike McGavick said in a statement, "We have delivered another quarter of solid operating results in a market that continues to be challenging."
He said that despite solid underwriting discipline, "we continue to feel the impact that the prolonged soft market has on earnings."
XL also announced today that its board approved a $1 billion share buy-back program, which XL said demonstrates the company's "current capital strength and commitment to capital management."
The company also announced the appointment of Michael J. Garceau as chief operating officer of its North America property and casualty unit. He will join XL Insurance on Nov. 8, reporting to Seraina Maag, XL's chief executive of the North America P&C Unit. Mr. Garceau will be based in New York.
Hamilton, Bermuda-based Montpelier Re Holdings Ltd. said its net income for the third quarter was $90 million, compared to $147.5 million in 2009. The company's combined ratio was 69.4, compared to 66.3 for the same period in 2009.
The company reported its loss ratio was 33 percent, which includes 8 points ($12 million) of loss from the New Zealand earthquake and 5 points ($9 million) from large risk losses. The quarter benefited from 14 points ($21 million) in favorable releases from prior years' loss reserves.
Argo Group, also based in Hamilton, said its net income was $23 million, compared to $27.6 million for the 2010 third quarter.
Argo Group reported it has repurchased $44.8 million, or 1.4 million shares, of its common stock, including $11.5 million, or 330,000 shares, since Sept. 30.
Argo's combined ratio for the quarter was 101.3 versus 98.6 for the same period in 2009.
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