XL Capital Reports Narrower 3Q Loss

NEW YORK (AP) — International insurer XL Capital Ltd. on Wednesday reported a much smaller third-quarter loss compared with a year-ago period in which it booked hefty charges linked to a former bond insurance unit.

For the three months ended Sept. 30, the company lost $11.4 million, or 3 cents per share, versus a loss of $1.6 billion, or $6.04 per share, in the prior quarter.

During the third quarter of last year, XL Capital incurred a charge of $1.42 billion tied to former subsidiary Syncora. Bermuda-based XL made payments and issued stock to Syncora as part of a deal to end the companies' reinsurance agreements.

Results for the latest quarter included a one-time charge of $310.8 related to investment losses. Excluding those items, XL earned $306.4 million, or 89 cents per share.

That performance beat Wall Street expectations, which typically do not include one-time charges. On average, analysts polled by Thomson Reuters estimated earnings of 63 cents per share.

Also contributing to the improved results this quarter was an increase of $183.7 million from the company's property and casualty underwriting operations, and fewer payouts on hurricane damages. Book value increased by 26 percent to $23.84 per share at the end of the quarter.