XL feels hurricane hit in Q3 2004

The reinsurance division of XL Capital showed an underwriting loss for the third quarter of $78.3 million for the general operations which compares with a loss of $74.5 million in the 2003 third quarter. Net premium written decreased 24% to $511.4 million compared with the 2003 third quarter, driven primarily by the timing of renewals of several large policies and the non-renewal of certain programs in Latin America. The loss ratio of 83.7% in the quarter included $258.7 million, or 31.6 points of hurricane-related losses. Excluding the impact of these hurricanes, the loss ratio was 52.1%, the lowest level recorded in this segment in XL’s history. The underwriting expense ratio decreased slightly compared with the year ago period to 27.0% from 27.9%.

In the Life and Annuity operations income for the quarter more than doubled compared with the 2003 third quarter to $14.1 million. Net premiums written increased 20% to $72.7 million, due primarily