XL Capital has rebounded from a flat 2009 to post a strong start to this year.

The Canary Islands-based insurer – now in the process of relocating to Ireland – tabled first-quarter net income of $US143.9 million ($159.65 million), up from $US3.1 million ($3.44 million) in the corresponding quarter.

Key to XL Capital’s resurgence has been reduced investment losses, which totalled $US251.9 million ($279.5 million) in the first quarter. In the first quarter of this year, investment losses have been $US36.2 million ($US40.16 million).

CEO Mike McGavick says heavy first-quarter catastrophe losses also had an effect on the bottom line.

“We are pleased to report solid results for XL’s first quarter of 2010, even as our industry incurred one of the heaviest levels of first-quarter catastrophe activity in history.

“Our combined ratio of 100.5% included a 14.3 point impact from the Chilean earthquake and [European Winter Storm] Xynthia, partially offset by 6.9 points of positive prior year development.”

The group achieved $US1.6 billion ($1.8 billion) in net premiums for the first quarter, which was up 6.1% on the prior period.