XL Chairman sells off his shares

by David Masters

Story link: XL Chairman sells off his shares

XL Capital’s Chairman, Brian M. O’Hara, has admitted that he involuntarily sold 80% of his common shares in the company last week to meet a margin loan call.

Announcing the share sale, O’Hara said he was regrettably ‘forced’ to sell 80% of his shares because of a ‘precipitous drop’ in XL’s share price.

He added that the sale in ‘no way’ demonstrates a lack of confidence in his Bermuda-based company.

O’Hara said the share sales will allow him to ‘refocus’ the business.

Over the last year O’Hara’s risk-taking strategy backfired with four consecutive quarterly losses for XL, two of which were over $1 billion.

The company expects to post a net loss of around $1.6 billion for the third quarter.

Since O’Hara sold the shares on 9th October XL’s share price has almost tripled.

XL Capital provides global insurance and reinsurance coverage through its operating subsidiaries to commercial, industrial and professional businesses, as well as to other insurance companies.