In a letter to shareholders of XL Catlin, Mike McGavick said the company is in a positive place and benefited from its bigger and more diverse portfolio last year as the insurance industry faced pricing headwinds and a number of natural catastrophes.

“We now see exactly the company we’re trying to build creating the difference that it can in the marketplace,” said Mr McGavick, who is chief executive officer of XL Group.

“We believe we can now drive that result to the bottom line and therefore into rewards for our shareholders.”

The letter to shareholders, a digital document that included videos and written messages from Mr McGavick, chairman Eugene McQuade and president, property and casualty Greg Hendrick, also featured updates on XL’s innovation, talent, and responsibility achievements from 2016.

Titled ‘Future Focused’, the latter highlighted a new advertising campaign, and described how the company is tackling new and emerging client risks.

“Throughout 2016, as pricing headwinds persisted and the number of natural catastrophes climbed, our underwriters produced premium growth while maintaining quality,” said Mr McGavick.

“That outcome benefited from the bigger and more diverse portfolio we created in XL Catlin, giving us a larger base from which to select and fine tune our portfolio, and it required disciplined underwriting.

“This underlying underwriting power started to shine through in 2016, and we finished the year with some of the best underwriting results, excluding natural catastrophes, we have produced in years.”

He added: “Through the noise of the year, our colleagues’ dedication to client service was unwavering and we ended 2016 with noticeable and market leading recognition.”

Mr McGavick noted that even though market challenges and pricing headwinds are expected to continue, “2017 is all about delivering fully on what we have built”.

The letter to shareholders can be read at http://xlgroup.com/2016-letters-to-shareholders/ceo-letter.html