XL's income was up for the quarter, but its reinsurance business was hit by losses from Windstorm Kyrill
XL Capital has reported net income for the first quarter of 2007 of $549.7m compared with net income of $458.5m for the same period a year ago. Net income for the quarter included pre-tax, net losses from Windstorm Kyrill of $55m, which is lower than the company's previously announced estimated range of $60m and $75m.
Commenting on these results, president and CEO Brian O'Hara said: "This quarter's excellent results reflect our drive to deliver value for our shareholders. Underwriting results in insurance were strong and reinsurance results were solid despite losses from Windstorm Kyrill. Our other segments continued their positive contributions and our affiliates generated outstanding returns again."
In its reinsurance business, underwriting profit for the quarter was $19.9m compared with $82.9m for the prior year period. The current quarter included a foreign exchange loss of $16.6m as opposed to a loss of $3.4m in the prior year quarter. These results also included pre-tax, net losses related to Kyrill of $45m. After taking into account reinstatement premiums for this event, the net impact on the underwriting profit of the reinsurance segment was a loss of $39m.
Gross and net premiums written decreased 3.8% and 6.8% respectively, reflecting increased retentions by cedants and segment cycle management activities resulting in certain contract cancellations and reduced share participations.