XL predicts more than $1B in 3Q investment losses

HAMILTON, Bermuda—XL Capital said this morning that it will report investment losses of between $1 billion and $1.2 billion when it announces its third-quarter results later this month. The disclosure came a day after XL’s stock plunged 54% to $4.01 a share. Market analysts attributed the decline to the Bermuda insurer’s larger-than-average exposure to mortgage- and asset-backed bonds: 32% of XL’s $34.3 billion fixed income investment portfolio consisted of structured finance products at the end of the second... [read full story]