XL Capital Posts Extra-Small Earnings

HAMILTON, BERMUDA (TheStreet) -- XL Capital posted an extra-large profit decline in the second quarter.

The insurer saw profits plunge 66%, sending shares down in after-market trading.

During the quarter, the company earned $80 million, or 23 cents a share, compared with $238 million, or $1.33, in the year-ago period.

Operating income, which excludes investment gains and losses, came in at $163 million, or 47 cents a share, missing analysts' expectations of 62 cents.

Shares of the company closed down 2% to $13.59, and continued to drop 0.5% in after-market trading.

On Monday, rival Ace(ACE Quote) reported a 28% decline in its second-quarter earnings due to softer policy sales and higher investment losses.

--Reported by Jeanine Poggi in New York.