XL Capital reports net loss

XL Capital Ltd has reported a net loss of US$1.06 billion for 2007 Q4.
It reported a net income of US$471.1 million for 2006 Q4.
Net income excluding net realized gains and losses 2007 Q4 was US$117.1 million, as compared with US$510.4 million for the prior year quarter, the company noted in a release.
“I believe that these previously announced fourth quarter charges, while disappointing, have reduced uncertainty and increased investors’ ability to recognize the strength of XL’s diversified and global insurance and reinsurance franchise, which continues to perform very well as evidenced by our full year combined ratio of 88.8%,” Brian M. O’Hara, president, CEO and acting chairman, said.
Underwriting profit for 2007 Q4 was US$17.7 million, compared with US$63.0 million in the prior-year period. Included in the current quarter’s underwriting results is net favorable prior-year development of US$33.5 million, as compared with US$20.1 million in the prior-year period.
Gross premiums written decreased 7.4%, the company reports, primarily due to competitive market conditions across most lines in the current quarter and specific exposure initiatives partially offset by favorable changes in foreign exchange rates and an increase in long-term agreements.