XL Group has reported a profit of $US651.1 million ($631 million) for 2012, turning around the previous year’s loss which had been affected by catastrophes and goodwill impairments.

Gross written premium (GWP) from property and casualty rose 4% to $US7.2 billion ($7 billion), with a 20% rise in fourth-quarter GWP on increased retentions. Property/casualty’s combined ratio improved to 96.3% from 107.5%.

Life GWP fell 10% to $US394.5 million ($382 million).

CEO Mike McGavick says the group’s natural catastrophe losses were $US464.3 million ($450 million). In December XL forecast Sandy losses of $US350 million ($339 million).

He says the profit demonstrates XL’s progress in delivering earnings, disciplined underwriting and enterprise risk management.

XL’s net investment income fell 11% to $US1 billion ($969 million).