XL Group plc reported yesterday that annual net earnings almost tripled in 2010.The Ireland-based company, which has substantial operations in Bermuda, made net income of $585.5 million last year, compared to $206.6 million in 2009.For the fourth quarter, XL swung to a $188.1 million profit from a loss of $40.3 million in the same period of 2009.The company reported earnings per share of 74 cents, beating estimates of analysts polled by Bloomberg, who forecast 66 cents.XL added that fourth-quarter natural catastrophe losses include $23.3 million related to flooding in Australia, with additional losses to come in the first quarter of this year to range between an additional $75 million and $95 million.The company posted net investment income of $290.4 million in the fourth quarter, compared to $316.4 million in the same period a year earlier, and $1.2 billion for the full year compared to $1.32 billion in 2009.Net realised investment losses were $104.5 million, compared to $263.5 million in the same quarter of 2009, and $270.8 million for the full year, compared to $921.4 million in 2009.“XL's fourth quarter results demonstrated progress in several key elements driving shareholder value,” said XL's chief executive officer Mike McGavick.“Our property and casualty operations' 91.4 percent combined ratio benefited from outstanding performance from our Reinsurance segment, positive prior year development and sustained operating efficiency.“We received our licence to offer insurance in China and added experienced teams in lines we believe offer prospects for strategic growth. Our on-going risk management discipline resulted in our catastrophe losses being at the low end of the expected range, with only modest changes to our initial estimates for the New Zealand earthquake.“We reduced exposures to non-core holdings, and we continued to return excess capital through share buybacks. We believe XL is in a solid position to meet the challenges of current market conditions and the opportunities that will come as conditions improve.”During the fourth quarter, XL made $250.9 million of share repurchases and bought back $520 million of shares during the full year.Fully diluted book value per ordinary share was $29.78 at December 31, 2010, representing an increase of 0.7 percent in the quarter and 21.1 percent froma year earlier.XL's property and casualty operations combined ratio was 91.4 percent for the quarter and 94.8 percent for the full year, compared to 96.4 percent for the quarter and 93.6 percent respectively in 2009.Property and casualty gross premiums written grew 13.8 percent in the fourth quarter to $1.3 billion compared to $1.15 billion in the same period in 2009. GPW were also up over the full year, rising to $6.26 billion from $6.11 billion.XL's quarterly results were boosted by $121.5 million of favourable prior year development, compared to $30.8 million in the prior year period.