The XL Group has revealed their fourth quarter and full year results for 2011, reiterating the damage the increased natural catastrophe’s had on the industry last year.
The company saw steep net losses, particularly in the fourth quarter. They reported a net loss of USD516 million (£326m) for the fourth quarter alone, bring the yearly net loss to USD479 million (£302m).
As usual, natural catastrophe’s were to blame, but a non-cash goodwill impairment charge of USD429 million (£271m) in the fourth quarter also contributed.
Losses from natural catastrophe, net of reinsurance and reinstatement premiums came to USD195 (£123m) for the quarter and USD781 million (£493m) for the year.
Commenting of the performance, Chief Executive Officer 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.”