XL Catlin’s fourth-quarter operating net income tumbled 34% to $US128.44 million ($167.18 million) as the November earthquake in New Zealand and other catastrophes hit earnings.

Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums increased to $US246.1 million ($320.42 million) in the December quarter from $US107.8 million ($140.35 million) in the corresponding period of 2015.

“[Last year] was undoubtedly a challenging year,” CEO Mike McGavick said.

“Our results were impacted by both a disappointing start as well as a number of significant catastrophe losses throughout the year, and in the fourth quarter in particular.”

Net income for the December quarter improved to $US304.7 million ($396.7 million) from $US228.5 million ($297.6 million), and net investment income declined to $US196.1 million ($255.3 million) from $US215.5 million ($280.6 million).

Gross written premium from property and casualty (P&C) operations grew to $US3.02 billion ($3.93 billion) from $US2.53 billion ($3.29 billion), but the P&C combined operating ratio deteriorated to 94.8% from 92.3%.