Dublin-based XL Group says profit fell 27% to $US255.71 million ($276.05 million) in the quarter to March 31, mainly driven by lower underwriting profit and “a difficult operating environment”.

Underwriting profit fell 19.7% to $US144.8 million ($156.32 million).

Gross written premium (GWP) in property and casualty operations grew 1% to $US2.42 billion ($2.61 billion), while the combined operating ratio deteriorated to 89.7% from 87.7% in the corresponding period of last year.

GWP in life operations was a bright spot, up 15.5% to $US84.29 million ($91.01 million).

Net income from investment funds fell 5% to $US233.18 million ($251.76 million).

CEO Mike McGavick says improvement across some sectors means XL produced one of its best quarters since the end of 2008.

“The 76.3% combined ratio for reinsurance is particularly satisfying, given the difficult market conditions,” he said.  “All in all, we like the way these results position us for 2014.”