XL Catlin CEO Mike McGavick says the group’s full-year result is “solid” amid a difficult reinsurance market and post-merger integration.

Net income attributable to ordinary shareholders last year was $US1.2 billion ($1.68 billion), including a fourth-quarter profit of $US228 million ($320.33 million).

The figures exclude the impact of GreyCastle Life retro agreements from a May 2014 deal, totalling $US982.1 million ($1.38 billion) for the year.

The property and casualty (P&C) combined operating ratio deteriorated to 92% last year from 88.2% in 2014.

Net investment income was down to $US684.88 million ($962.25 million) from $US789.05 million ($1.1 billion)

P&C gross written premium increased to $US10.67 billion ($14.99 billion) from $US7.76 billion ($10.9 billion).

The group’s operating net income dropped to $US705.9 million ($991.78 million) from $US999.2 million ($1.4 billion).

Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums almost doubled to $US213.2 million ($299.54 million) from $US113 million ($158.76 million).

XL’s $US4.1 billion ($5.76 billion) acquisition of Bermuda-based Catlin Group last May led to $US156.4 million ($219.74 million) in integration costs.

CEO Mike McGavick says the merger was “transformative” and the integration successful. 

“Our colleagues focused on executing a superior integration process that has thus far exceeded our expectations for both business and talent retention, as well as synergy savings,” he said.

“Looking to [this year], taking into account the continued pressure from both the (re)insurance and investment markets, we feel we are well positioned to capitalise on our increased market relevance and to find new areas of innovation and opportunity.”

The full-year results include those of Catlin Group from May 1.