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Daily Insurance Industry News
Monday 23rd of April 2018
April 28, 2009

XL Capital Q1 profits down 99%

by David Masters

Story link: XL Capital Q1 profits down 99%

Bermuda-based XL Capital this week posted its third successive quarter of falling results.

Net income for the first quarter dropped 99% on year to $3.1 million, down from $244.4 million in the year ago period.

Losses on investments and a fall in premiums were blamed for the drop in profits.

Gross premiums written declined 31% on year to $1.88 million, although combined ratio improved by 0.6 percentage points to 93.0%.

Investment funds lost $42.4 million, compared to a profit of $24.7 million in the first quarter of 2008.

However, the result is an improvement on the two previous quarters when the company posted back-to-back losses above $1 billion.

Michael McGavick, CEO, said the performance demonstrates that XL is ‘on solid footing’ and is on target to deliver longterm shareholder value.

“This strong result supports our intention to focus on those lines of business within our insurance and reinsurance operations that provide the best return on capital,” he added.

McGavick said the company is in particular scaling back on risky investments.

 

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