Bermuda-based (re)insurer XL Group made a net profit of $225.7m in the second quarter of 2011, up 18% on the $191.8m is made in last year’s second quarter.

However, the company made a loss of $1.6m in the first half of 2011 as a whole, compared with a profit of $319.8m in the first half of 2010.

XL’s second-quarter combined ratio worsened to 94.9% from 92.2%. Reserve releases of $127.6m (Q2 2010: 82.3m) were offset by $68.3m of catastrophe losses as well as an increased number of large marine and aerospace specialty losses.

The first-half combined ratio was a loss-making 110.1%, compared with a profitable 96.4% in the first half of 2010, as a result of first-quarter natural catastrophe losses, including the February earthquake in New Zealand and the March earthquake in Japan.

Gross written premiums in the second quarter of 2011 increased 17% to $1.8bn (Q2 2010: $1.5bn). First half gross written premiums increased 13% to $3.9bn from $3.4bn.

XL chief executive Mike McGavick praised his company’s second-quarter performance, pointing to the annualised operating return on equity of 10.3%.

“Our risk management discipline has put XL's catastrophe loss experience, measured as a percentage of shareholders' equity, among the best of our peers for both the second quarter and the year to date,” McGavick said. “ XL continued to pursue profitable underwriting opportunities in both existing and expanded markets, and added teams and leaders in lines we consider attractive.”