The insurance sector recently has faced some of the worst quarters in years for catastrophe losses because of devastating disasters in Thailand, Japan, New Zealand and the U.S. Despite year-over-year increases in losses from disasters, XL had reported higher premiums in recent quarters.
XL's combined ratio-- the percentage of premiums paid out on losses and expenses-- rose to 108.2% from 91.4% in the P&C business. A ratio more than 100% means the company paid out more than it brought in. Catastrophe losses were $194.9, up from $30.3 million a year ago.
Last month, the company estimated fourth-quarter losses of $135 million to $185 million from the flooding in Thailand and additional losses of about $35 million related to catastrophes that occurred during the first three quarters of 2011.
Overall, XL posted a loss of $515.5 million, or $1.62 a share, compared with year-earlier profit of $188.2 million, or 57 cents a share, a year earlier. The most recent period included a $429 million impairment of goodwill charge. The company reported an operating loss, which strips out investment gains and losses, of 25 cents a share from a year-ago net income of 74 cents.
In the most recent period, net premiums written slipped 0.2% to $1.12 billion. Premiums earned in the property-and-casualty operations rose 8.1% to $1.39 billion.
Analysts surveyed by Thomson Reuters predicted operating earnings of 16 cents a share on earned P&C premiums of $1.52 billion.