XL Group Ltd. CEO Mike McGavick is confident that the company will deliver solid results going forward using lessons learned in 2017.
XL Group's fourth-quarter and full-year 2017 results were impacted by several natural catastrophes, but the CEO is optimistic toward the future given the company's solid capital position, strong market relevance and the changing rate environment.
McGavick said during an earnings call that XL Group is "very well-positioned for what comes next," pointing out that the company produced solid underlying results in 2017 despite the impact of catastrophe losses.
The CEO also said that XL Group is poised to benefit as the rate environment changes, with rate levels becoming "more consistent" and "more sustainable." He noted that the company saw a 3.5% rate gain in insurance and around 5% in reinsurance overall.
"As regards rate, it is early but we like what we are seeing. It matches us well and allows us to accelerate our strategic journey as we shift our profit engine into higher gear," McGavick said. "So all in, a tough year. We learned a great deal and we are taking action to make changes where we think it's needed."
