To give you a sense of what you can expect from this call. First, I'm going to give you a high-level look at these results, including a brief discussion of our reserve releases, I'll then briefly touch on pricing in the quarter, and then we'll turn to two noteworthy topics; the effect of drought impacting so much of the United States and the developing issues around LIBOR. I'll then turn it over to Pete for a closer discussion of our financial results and to Greg and Jamie to get more granular on our insurance and reinsurance performance.
Now, first to our overall results. As you saw in our release for the second quarter we reported fully diluted operating earnings of $0.71 per ordinary share and an annualized operating ROE of 9.1%. Again, this is a solid result, especially at this point in the cycle and at this point in XL's improvement. All of this translates to fully diluted tangible book value per ordinary share of $30.65, which is up 3.6% in the second quarter and 8.3% higher than where we began the year. We improved our loss and combined ratios in both insurance and reinsurance and reported a total P&C combined ratio of 90.8% more than four percentage points better than the second quarter last year.
And most notably, our insurance results continued their recent improvement. The Insurance segment combined ratio ex-cat, ex-PYD improved 98.5%, which is obviously still higher than we would like, but trending in the right direction.
It is also good to observe that this is the sixth consecutive quarter in which insurance produced a better accident year loss ratio ex-cats. So, as I say, we are delivering on the margin expansion, we expected. Meanwhile, Reinsurance delivered a combined ratio of 72.6%, another really stellar result.Turning briefly to pricing; broadly, we continue to see improvement across the vast majority of our lines, especially in insurance and this progress has accelerated through the quarter.