Hamilton, Bermuda-based insurer XL Capital Ltd. reported a loss in net income of over $1 billion in line with its previously announced move to write-down charges of $1.5 billion for its holdings in credit market insurers.
The write-down primarily covers the company's investment in Security Capital Assurance, a financial guaranty insurer and reinsurer (see NU Online News, Jan. 24). XL owned SCA until an initial public offering in 2006. XL has a 46 percent investment in SCA, which accounted for a $524 million write-down in the value of the holding.
Without the write-down, XL said it would have shown a fourth-quarter profit of over $400 million.
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