Mr. Brian M. O'Hara, President and Chief Executive Officer of XL, stated: "Although we are confident about our prospects, the third quarter of 2001 has been the worst in the history of the property and casualty insurance industry. In addition to our claims resulting from the attack on the United States, our third quarter results will include a provision of approximately $100 million for other events, including the results of newly-acquired Winterthur International and losses stemming from the airport attack in Sri Lanka, the recent explosion in Toulouse, France, and our Lloyd's operations."
Details of XL's reinsurance recoverables pertaining to the September 11th event are set forth in the following table indicating that 96 percent of the relevant reinsurers currently fall into Standard & Poor's rating categories of A or better.
Reinsurance Recoverables
Rating Category September 11 Events
AAA 26%
AA 39
A 31
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96 %
Other 4 %
Total 100%
The foregoing table reflects estimates only and is based on Standard & Poor's ratings of reinsurers as currently in effect and does not reflect potential ratings actions that may be taken in the future with respect to any reinsurer.
The foregoing information will be included in the XL presentation at the Bermuda Angle Conference at the Fairmont Southampton Princess Hotel in Bermuda commencing at 8.00 a.m. Atlantic time (7.00 a.m. EST) on October 4th.
There will be a live audio webcast and simultaneous slide presentation that can be accessed through the agenda page of the Bermuda Angle website (www.bermudaangle.com) and will be available until October 18, 2001. There will also be a link to the audio webcast from the XL website (www.xlcapital.com). It will be archived for approximately 30 days following the presentation.
The Company expects to announce its third quarter earnings the week of October 22nd.
XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As at June 30, 2001, XL had consolidated assets of approximately $18.7 billion and consolidated shareholders' equity of approximately $5.7 billion.