Global insurer and reinsurer Bermuda based XL Capital Ltd. said it estimates that its investment portfolio lost from $1 billion to $1.2 billion in the third quarter.
The firm announced it expects a third quarter book value for its shares of from $21 to $22.50. Its estimate was as of Sept. 30. Total common share count on that date, was approximately 330.8 million the company said.
Meanwhile, the market value of the share's stood at $4.0l when trading closed yesterday on the New York Stock Exchange. A year ago it was selling for $81.25 a share.
The company said the XL's estimated book value was negatively impacted, although to a lesser extent, by the strengthening of the U.S. dollar versus other leading currencies during the period.
XL Chief Executive Officer Michael S. McGavick commented, "We are determined to provide investors with the information they need to assess the value of XL's shares. I believe that the preliminary estimates we have provided today will assist in these efforts."
He said the next time the company expects "to be able to provide further meaningful financial information is early next week" and he would be providing data during conference call scheduled for Tuesday. That discussion is scheduled for 8:30 a.m. Eastern Time.
The company said the call will be accessible through a listen-only dial-in number (877) 422-4657 or (706) 679-0474, Conference ID# 67852140 or through a live webcast at www.xlcapital.com.
Bank of America analysts, reacting to the announcement, noted that the company's stock "has been under extreme pressure, likely on fears of outsized investment losses leading to ratings downgrade pressure or a potential capital raise."
However, they said third quarter investment losses appeared lower than feared. by the market.
The bank noted that rating agencies actions are uncertain and unpredictable and mentioned that XL earlier in the year had raised more capital than was needed in hopes of an upgrade.
But the bank said it does not know "how rating agencies will react and they may still downgrade the company's ratings in spite of having more than enough capital for the current ratings.
This article was updated 1:49 p.m.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.