A lull in natural catastrophes has enabled diversified insurer XL Group to post $US569.6 million ($547.35 million) in net income for the first nine months of the year, more than half a billion dollars ahead of earnings from the same time last year.

Natural catastrophe payments were down 71% in the third quarter alone as the Dublin-based company posted net third-quarter income of $US171.9 million ($165.18 million).

CEO Mike McGavick says he is not expecting the company to sustain large losses from Hurricane Sandy, although he estimates total insured losses will be “at the top end” of estimates.

Analysts are now predicting insured losses of up to $US20 billion ($19.2 billion), which would make Sandy the third most destructive event in US history.

“This was simply a massive event by any measure,” Mr McGavick said. “When all this is all said and done, I don't think any of us are going to feel that people were as well insured as they could have been.

“I believe the underwriting community will have to rethink what they should charge for risks in a region with such a complex concentration of values exposed to such storms.”

Despite gross written premium falling 11% to $US1.58 billion ($1.51 billion), XL Group reported improvements in its combined ratio to 92.7% to September 30, up 14.5 percentage points since last year.

Underwriting profit was $US114.2 million ($109.74 million) for the third quarter and $US306.82 million ($294.83 million) for the first nine months – a $US136.4 million ($131.07 million) and $US592.03 million ($568.91 million) turnaround respectively from the corresponding periods last year.