XL Capital Ltd Issues Statement in Response to Market Rumors
The following press release was issued by XL Capital in response to rumors that it was looking to sell a number of units due to its financial condition. XL stated that it normally doesn't comment on such market rumors, but felt it was necessary to do so:
XL Capital remains focused on operating its business and meeting the needs of its customers and is committed to taking actions as necessary to maximize value for its shareholders. In that regard, as can be expected in the current environment, XL Capital is continuing to explore value-enhancing opportunities available to it and is being assisted in that effort by one of its long-standing financial advisors, Goldman, Sachs & Co.
Based upon the most recently available information, XL Capital anticipates that the estimated mark-to-market decline on its investment portfolio (comprised of changes in unrealized losses, other than temporary impairments and realized losses on securities sales) due to changes in credit spreads and interest rates since the end of the third quarter of 2008 to date would be largely in line with that reported for the third quarter of 2008. XL Capital notes that future market movements will occur between now and the end of the fourth quarter of 2008, and such movements will affect the mark-to-market on the investment portfolio that the XL Capital will report for the fourth quarter of 2008.
In addition the XL Capital estimates that it will report approximately $200 to $220 million in net investment fund affiliate losses from its alternative investment portfolio for the fourth quarter of 2008 (covering September, October and November).
XL Capital Ltd, through its operating subsidiaries, is a leading provider of global insurance and reinsurance coverages to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. More information about XL Capital Ltd is available at www.xlcapital.com.
Source: Source: XL Capital | Published on December 12, 2008
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