Bermuda’s XL Capital Ltd. announced that it was posting a net loss for the 3rd quarter ended Sept. 30 of $840 million, or a loss of $6.57 per share, compared with net income of $139.5 million, or income of $1.10 per share, in the same period last year.
The loss figures are due primarily to the net incurred losses from the attack on the World Trade Center, now estimated at around $750 million, but XL was also hit by some other major catastrophes during the period. The attack on the airport in Sri Lanka, the explosion of a chemical plant in Toulouse, France, satellite losses and “adverse development in the Company’s Lloyd’s operations” caused another $103.7 million in after tax losses.
For the first nine months of the year XL has recorded a net loss of $492.5 million, although net premiums earned have actually increased during the period to $1.9347 billion, compared to $1.5378 billion during the same period last year.
President and CEO Brian O’Hara, commenting on the results, noted that the September 11 losses were the largest the insurance industry had ever been faced with and marked an “unprecedented change in both our insurance and reinsurance markets.” He promised XL would recover and would demonstrate its essential strength. “We will be committing our capacity where the highest and most enduring returns are and remain fully committed to our strategic insurance, reinsurance and financial products business,” he concluded.
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