The newly merged XL Catlin group has reported a $US915.04 million ($1.24 billion) profit for the three months to June 30, the first quarter since Catlin was taken over.

XL Catlin made a $US279.3 million ($379.66 million) loss in the same quarter of last year on the sale of its reinsurance unit.

The latest result includes a $US340 million ($462.18 million) gain on an asset sale, plus a $US239.2 million ($325.16 million) gain from a derivatives transaction.

The Dublin-based (re)insurer reported a 42% rise in total property and casualty gross written premium (GWP) to $US3 billion ($4.08 billion) with the inclusion of Catlin for two months.

The combined operating ratio deteriorated to 89.9% from 88.3%.

Rates pressure in most insurance lines was offset by new business, particularly in marine, political risk and trade credit, and North America construction.

The reinsurance division’s GWP grew 59% to $US782.25 million ($1.06 billion) with the inclusion of Catlin, but otherwise it would have declined 3% due to rates pressure.

The company booked $US59.9 million ($81.42 million) of catastrophe losses, up 73% on the corresponding quarter last year.

CEO Mike McGavick says work continues to unlock the value of the combined group, despite continued market headwinds.