XL Reports Q1 Rise from Operations, But Investment Losses Hit Net Income

April 30, 2002

Bermuda-based XL Capital Ltd reported that its net income for the first quarter ended March 31 was $89.5 million, or $0.65 per share, compared with $218.9 million, or $1.73 per share, in the first quarter of 2001, a 59 percent drop; while net operating income for the period increased to $210.4 million, or $1.53 per share, compared with $156.7 million, or $1.24 per share, in the same period last year.

The company noted that the results included those of Winterthur International, which it acquired last year, France’s Le Mans Re, in which it is now the majority shareholder and its Lloyd’s operations.

Net income decreased due to a $106.02 million in losses from investments, coupled with $13.2 million in losses from derivatives trading. XL’s gross written premiums for the quarter more than doubled to $2.85 billion, compared to $1.1508 billion last year.

Commenting on the first quarter results, Brian M. O’Hara, XL’s President and CEO stated, “Our first quarter results reflect the strong growth and improved market conditions that we continue to see in all segments of the Company. Additionally, we have benefited from a flight to quality and from new premiums from the inclusion of XL Winterthur International and Le Mans Re in the first quarter.”|”xl, reports, q1, rise, from, operations,, but, investment, losses, hit, net, income

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