XL Group reported a slump in third-quarter net income as a $96 million hit from the Tianjin explosion and integration costs related to its merger with Catlin took their toll.

Net income in the first complete quarter for the combined XL Catlin business totalled $27.3 million, down from $72.4 million in the corresponding period last year.

Operating earnings of $70.8 million, or 23 cents per share, fell short of analysts’ consensus forecast for 44 cents, and were down from $187.1 million in the prior-year quarter.

Mike McGavick, XL Group’s chief executive officer, said: “Our bottom-line results in the quarter were particularly impacted by market events and ongoing expenses related to our integration. “Our colleagues’ effort to move quickly through our integration continues to be recognised by positive reaction from clients and brokers and the new opportunities we are seeing.

“We have absolute confidence in the fundamentals of the new company we are building and remain focused on creating value by becoming the most innovative and admired re/insurance company in our industry and feel we are well on our way.”

XL said the third quarter included $55.2 million in integration costs as well as $30.8 million in natural catastrophe losses compared to $29.8 million in natural catastrophe losses in the prior year quarter.

The company added that losses net of reinsurance and reinstatement premiums related to the mid-August explosion at the port of Tianjin, China totalled $95.7 million.

Earnings from operating and investment fund affiliates were $4.5 million, compared to $44.5 million in the prior year quarter, due primarily to equity market volatility on the hedge fund portfolio

Fully diluted tangible book value per share was $31.95 at September 30, 2015, a decrease of $0.58, or 1.8 per cent, for the quarter.

XL spent $180 million on buying back 4.8 million shares during the quarter. At September 30, 2015, $880 million remained available for under the company’s share buy-back programme.