International insurer XL Capital Ltd., with operations in Hartford, says it suffered a much smaller fourth-quarter loss compared with the same quarter a year ago, as investment losses shrank.
For the three months ended Dec. 31, Bermuda-based XL Capital reported a loss of $40.3 million, or 12 cents per ordinary share.
That compared with a loss of $1.43 billion, or $4.33 per share, in the same quarter a year ago, when XL Capital recorded more than $1 billion in impairment charges. XL Capital is trying to recover from heavy losses at a former bond-insurance subsidiary.
The latest quarter’s loss was primarily due to $254.8 million in investment losses, after taxes.
Excluding those losses and other one-time items, XL Capital reported operating income of $235.8 million, or 69 cents per ordinary share. On that basis, analysts surveyed by Thomson Reuters had expected operating income of 70 cents per share, on average.
Net investment income fell nearly 20 percent to $316.4 million from $393.1 million in the year-ago quarter.
XL Capital also recorded charges of $21.8 million in the latest quarter from cost reductions including job cuts, compared with $8.7 million for the same quarter a year ago.
Underwriting income from the company’s property and casualty operations dropped nearly 72 percent to $45.7 million from $162.2 million, as gross and net premiums written shrank.
Book value increased by 3 percent to $24.60 per ordinary share. (AP)
