XL Group has reported a net loss of $US560.4 million for last year, hit by an above average year for natural disasters.

The Bermuda-based group includes among its subsidiaries UK-based Catlin and Australian underwriting agency Brooklyn.

Despite the loss for the year, it says the final quarter yielded a profit of $US28.8 million ($36.41 million).

The property and casualty combined operating ratio deteriorated to 108.3% last year from 94.2% in 2016.

Gross written premium (GWP) increased to $US3.56 billion ($4.49 billion) from $US3.01 billion ($3.8 billion). Net investment income improved slightly to $US829.72 million ($1.05 billion) from $US827.13 million ($1.04 billion).

Natural catastrophe pre-tax losses net of reinsurance, reinstatement and premium adjustments and redeemable non-controlling interest for the fourth quarter were $US315.2 million ($398.39 million), up from $US246.1 million ($310.51 million) in the corresponding period of 2016. They were $US2 billion ($2.52 billion) for the full year, up from $US636.3 million ($804.25 million).

CEO Mike McGavick says, despite the full-year loss, the group is well positioned due to a “solid capital position”.

He is also buoyed by progress in last year’s ex-catastrophe underlying results, growth in GWP and signs of rates returning to more “realistic” and “sustainable” levels.

“Additionally, with the benefit of learnings from [last year’s] catastrophe experience and seeing the early way in which the rate environment is reacting… we have already made a series of adjustments to optimise the balance of risk and return, meaningfully enhancing our catastrophe exposure profile while keeping us a leading player in these businesses,” Mr McGavick said.