XL reports $2.55bn loss for 2008
Bermuda-based XL Capital has posted its 2008 results, with a $2.55 billion net loss in what CEO Michael McGavick called the ‘toughest year in XL’s history’.
The loss is compared to net income of $275.9 million in 2007.
Losses of $1.21 billion and $1.42 billion were sustained in the third and fourth quarters respectively.
Fourth quarter losses were blamed on soured investments, hedge fund losses, and a portfolio restructuring to reduce risk.
Following the losses, XL plans to cut its 4,000 strong global workforce by 10%.
“You will see us making some painful decisions,” said McGavick.
McGavick reassured shareholders that XL is well positioned for 2009, with sufficient capital, strong renewals, and increased rates across some lines.
McGavick said: “Not only are we happy to say ‘goodbye’ to 2008, we are excited at the prospects for 2009.
“We have ample capital for our ratings, we have market leading talent and as evidenced by our January 1 renewals, a quality book of business.
“We have completed one cost reduction initiative on time and on budget and have identified further ways to deliver cost effective support to our underwriters that we will implement in 2009.”
Category: Financials, Insurance News
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