XL Group posted net income of $255.7 million in the first three months of the year in what CEO Mike McGavick described as “one of the best quarters since the end of 2008” for the company.

The global business insurer’s operating net income of $238.6 million, or 85 cents per share, comfortably exceeded the 74 cents a share consensus expectation of analysts tracked by Yahoo Finance.

“These results included a total P&C combined ratio of 89.7 percent, total underwriting profit of $145 million, and a loss ratio of 58.9 percent — all of which demonstrate our continued broad-based improvement,” Mr McGavick said.

“This performance also included Insurance segment underwriting profit of $45 million and an Insurance accident year ex-cat combined ratio of 94.6 percent in the quarter.

“And the 76.3 percent combined ratio for Reinsurance is particularly satisfying given the difficult market conditions. All in, we like the way these results position us for 2014.”

The 89.7 percent combined ratio compared to 87.7 percent in the same period of 2013.

P&C gross premiums written (GPW) in the first quarter increased one percent compared to the prior year quarter.

The Insurance segment GPW increased 4.9 percent from the prior year quarter, as a result of higher renewed premiums in International Professional and North American Casualty and Construction lines. Reinsurance segment GPW decreased 5.4 percent from the prior year quarter, predominantly driven by the non-renewal of a large UK Motor treaty and competitive trading conditions in Property.

Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums in the quarter totalled $17.2 million, compared to $4 million in the prior year quarter.

Annualised operating return on ordinary shareholders’ equity, excluding and including unrealised gains and losses on investments, were 10.4 percent and 9.4 percent, respectively.

Net investment income for the quarter was $233.2 million, compared to $246.5 million in the prior year quarter and $240.8 million in the fourth quarter of 2013.

XL repurchased 5.8 million shares for $175 million at an average price of $30.19 per share, which was accretive to fully diluted tangible book value per ordinary share by 14 cents.

In February, the company increased its share buy-back programme, authorising the repurchase of up to $1 billion of ordinary shares.

At March 31, 2014, $892.6 million of ordinary shares remained available for purchase under share buy-back programme.

Fully diluted tangible book value per ordinary share was $35.30 at March 31, 2014, an increase of $1.44, or 4.3 percent, from the wend of last year.