XL Group says first-quarter net income fell to $US36.3 million ($45.38 million) from $US255.72 million ($319.71 million), amid lower investment income and losses on the sale of its life reinsurance subsidiary last year.

When the life retrocession is excluded, net income was $US164.6 million ($205.76 million), the Dublin-based company says.

The life subsidiary sold for $US570 million ($712.54 million) last May, generating a $US621.3 million ($776.67 million) loss.

The property and casualty (P&C) arm’s combined operating ratio was 88.9% for the March quarter, compared with 89.7% in the corresponding period last year.

P&C gross written premium gained 2.1% to $US2.48 billion ($3.1 billion).  

Net investment income for the quarter fell to $US208.5 million ($260.66 million) from $US233.2 million ($291.56 million). Included in the figure is $US50.4 million ($63 million) related to investments to support life retrocession arrangements, XL says.

In January XL announced it would acquire insurance and reinsurance group Catlin for $US2.79 billion ($3.48 billion) in a cash and share deal.

CEO Mike McGavick says XL produced strong first-quarter underwriting results, while integration planning for the merger with Catlin continues. “While nearing what we hope will be a successful close to the transaction, we continue to focus on delivering our 2015 plan while being incredibly excited about what XL Catlin will achieve together.”