XL Capital Ltd. (XL) Reports $40 Million Loss
February 09, 2010 11:44 PM
Reinsurer XL Capital Ltd. (NYSE: XL) reported a quarterly loss of $40 million after losing more than $250 million selling risky investments like mortgage backed securities.
XL Capital reported a 4th quarter net income of $40.3 million, or 12 cents per share, compared to a net loss of $1.43 billion, or $4.33 per share in the 4th quarter of 2008, at the height of the global financial crisis.
Operating income, which excludes net realized investment gains and losses, came in at $235.8 million, or 69 cents per share.
Analysts expected the reinsurer to earn 70 cents per share, according to a poll of 14 analysts by Thomson Reuters.
XL Capital Chief Executive Mike McGavick said that the company would move away from the sort of risky investments that led to over $250 million in investment losses.
"One of our key initiatives throughout the year has been to reposition the investment portfolio to one more typical of a [property and casualty] company, and to reduce its inherent volatility," McGavick said.
