During a conference call CEO Michael McGavick compared the quarter's losses to that of the 2011 fourth quarter, “where we had a collection of sizable losses that impacted our results” that prompted the company to rethink and review its business and identify places to improve.

“Not so this time,” he told analysts. “This quarter, with a similar set of issues, we made an underwriting profit. Today is remarkably different, and it is a direct result of the progress we are making.”

XL's third quarter P&C combined ratio was 95 compared to 92.2 during the 2012 third quarter. XL reports favorable prior-year development of $79.2 million compared to $36.5 million last year. Third quarter underwriting profit was $76.9 million—down from $114.2 million a year ago during the same time.

McGavick said the insurance segment's year-to-date combined ratio excluding catastrophes of 96.1 and its loss ratio excluding catastrophes of 65.6 are the “best results on the same basis since 2007.”

P&C gross premiums written in the insurance grew 8.7 percent—driven by new business in North American, including in construction and property, says XL.

Reinsurance GPW fell 16.2 percent from the third quarter last year due to nonrenewal of a crop quota share treaty, reductions in volume on exposures in North America, and a decrease in property treaties in Latin America.

McGavick says XL has a broader mix of business—70 percent of which are showing improved loss ratios through 9 months than during the same period in 2012.

The CEO adds that XL received overall average rate increases of 3.4 percent during the quarter—outpacing claims trends and exceeding loss cost trends.