Bermudian-based XL Group Ltd has reported a big jump in second-quarter profit to $301.6 million, or $1.14 per share, compared to $43.8 million in the same period of 2016.

The net income boost was primarily driven by lower catastrophe losses and favourable results from its affiliates, including the sale of one of the investment manager affiliates.

Catastrophe pre-tax losses net of reinsurance and reinstatement premiums were $92.1 million, compared with $240.1 million same quarter in 2016, which included nearly $130 million of losses from the Fort McMurray wildfire in Canada.

The company’s earnings when adjusted for non-recurring gains was $255.1 million, or 96 cents per share, easily beating analysts expectations of 89 cents per share.

Mike McGavick, chief executive officer, said: “In the second quarter we remained focused on disciplined underwriting and are pleased with our overall results.

“Also in the quarter we generated positive investment returns, continued to capture efficiencies as an organisation and actively managed our capital.

“We remain committed to fully delivering the value of the franchise we have built.”

Integration costs related to XL’s acquisition of Catlin in 2015 were completed during the quarter and totalled $39.1 million, some $13 million lower year-on-year.

The company reported P&C combined ratio — the portion of premium dollars spent on claims and expenses — of 92.3 per cent, an improvement on the 96 per cent in the same period in 2016.

The loss ratio fell from 64.6 per cent to 60.8 per cent.

Net income from affiliates was $73.5 million for the quarter, compared to $34.6 million in the prior year quarter.

There was a fall in net investment income to $208.7 million, compared with $215.4 million in the same period last year.

Gross premiums written were $3.54 billion, up $24 million year-on-year.

The company, which brands itself XL Catlin, bought back six million shares, or $250.1 million, during the quarter.

At June 30, $650 million of shares remained available for purchase under XL’s share buyback programme.

Before the earnings report was released, XL’s shares closed at $45.98, down 38 cents, in New York.