Brian M. O'Hara, President and Chief Executive Officer of XL Capital Ltd stated: "These are unusually large losses, by some accounts the worst in France for more than 400 years. However, we are in the business of providing protection against high severity, low frequency events and the impact on XL is small relative to our capital base and will not adversely affect the Company's financial condition. In fact, the widespread extent of these losses, which have been estimated will exceed $6 billion of insured damage, should serve notice that catastrophe reinsurance rates are inadequate and increases are warranted."
XL Capital expects to announce fourth quarter and full year 1999 results after the stock market close of trading on Wednesday, February 9, 2000.
XL Capital Ltd, through its wholly-owned subsidiaries, including XL Insurance Ltd, XL Mid Ocean Reinsurance Ltd, XL Capital Products Ltd, The Brockbank Group plc, NAC Re Corp., Intercargo Corporation and ECS Inc., provides insurance and reinsurance coverages and financial products worldwide. As of September 30, 1999, XL Capital Ltd had consolidated assets of approximately $14.1 billion and shareholders' equity of approximately $5.4 billion. Additional information is available on the XL Capital Ltd web site: www.xl-capital.com.
This press release may contain forward-looking statements, which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about our beliefs, plans, estimates or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements, and therefore you should not place undue reliance on them. In particular, ultimate losses from the two European windstorms may differ from current projections depending on information received from ceding companies in the future. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.