XL Capital Reports WTC Reserve Loss
NU Online News Service, July 31, 2:47 p.m. EST?Bermuda-based insurer XL Capital Ltd. reported a net loss of $91.7 million for the second quarter, compared to net income of $128.6 million for the same period last year.
The loss translates into 68 cents per share compared to net income of $1.01 per share for second quarter 2001.
The company enjoyed a 53 percent increase in net premiums written for the second quarter, rising from $749 million for 2001 to $1.15 billion.
XL said results reflect $200 million in losses stemming from the terror attack on the World Trade Center and $110 million in losses on investments including $92.5 million related to WorldCom, Adelphia and other telecommunication companies. Both results were announced prior to the second-quarter report, the company said.
Brian M. O'Hara, president and chief executive officer of XL, said in a statement that the strong premium growth in the second quarter is "the pipeline of future earnings." He added that the increase in loss reserves related to the WTC attack "should fully address our losses from this unprecedented event."
He went on to say that net operating income for the second quarter "was slightly above expectations." For the second quarter of 2002, net operating income was $25 million compared to $160 million for the same period ending 2001.
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