XL Capital Reports WTC Reserve Loss

NU Online News Service, July 31, 2:47 p.m.EST?Bermuda-based insurer XL Capital Ltd. reported a netloss of $91.7 million for the second quarter, compared to netincome of $128.6 million for the same period last year.

The loss translates into 68 cents per share compared to netincome of $1.01 per share for second quarter 2001.

The company enjoyed a 53 percent increase in net premiumswritten for the second quarter, rising from $749 million for 2001to $1.15 billion.

XL said results reflect $200 million in losses stemming from theterror attack on the World Trade Center and $110 million in losseson investments including $92.5 million related to WorldCom,Adelphia and other telecommunication companies. Both results wereannounced prior to the second-quarter report, the company said.

Brian M. O'Hara, president and chief executive officer of XL,said in a statement that the strong premium growth in the secondquarter is "the pipeline of future earnings." He added that theincrease in loss reserves related to the WTC attack "should fullyaddress our losses from this unprecedented event."

He went on to say that net operating income for the secondquarter "was slightly above expectations." For the second quarterof 2002, net operating income was $25 million compared to $160million for the same period ending 2001.