Reinsurer XL Capital, with operations in Hartford, posted a smaller third-quarter net loss, compared with a year ago when the company was hurt by its ownership of a troubled bond insurer, Reuters reports.
In the most recent quarter, results were hurt by a decline in policy sales and net investment income, but on an operating basis, the results were better than expected, Reuters reported.
XL said it had a net loss of $11.4 million, or 3 cents per share, compared with a loss of $1.6 billion, or $6.04 a share, in the year-ago quarter, the news service said.
The Hamilton, Bermuda-based reinsurer was hit hard last year by structured-finance losses recorded by Syncora Capital, a bond insurer in which it was the majority owner.
In the latest quarter, operating income was $306.4 million, or 89 cents a share, compared with $107.8 million, or 39 cents a share, in the year-ago period.
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On that basis, analysts on average expected earnings of 63 cents a share, according to Thomson Reuters I/B/E/S.
A year ago, XL severed its ties to Syncora but lost customers over the incident, leaving the company grappling with a decline in premium sales.
Third-quarter net premiums written fell nearly 5 percent to $1.2 billion, and net investment income fell 25 percent to $327.1 million. However, book value — a key investor measure of valuation — rose 26 percent to $23.84 per share.
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