SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 24, 2000
XL CAPITAL LTD
(Exact name of registrant as specified in its charter)
Cayman Islands 1-10809 98-0191089
(State or other jurisdiction of (Commission File No.) (I.R.S. Employer
incorporation or organization) Identification No.)
Cumberland House, 1 Victoria Street, Hamilton, Bermuda HM 11
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (441) 292-8515
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ITEM 5. Other Events.
Attached hereto as Exhibit 99 is a press release issued by XL Capital Ltd
(the "Company") on January 24, 2000 providing supplemental selected quarterly
and year to date financial data for 1998 and 1999.
Exhibit Description
99 Press release dated January 24, 2000
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: January 28, 2000 XL CAPITAL LTD
By: /s/ Paul S. Giordano
--------------------------------------
Name: Paul S. Giordano
Title: Executive Vice President,
General Counsel and Secretary
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EXHIBIT INDEX
Exhibit Description
99 Press Release dated January 24, 2000
PRESS RELEASE
Exhibit 99
XL Capital Ltd
Cumberland House
One Victoria Street
P.O. Box HM 2245
Hamilton HM JX
Bermuda
Phone: (441) 292-8515
Fax: (441) 292-5280
NEWS RELEASE
IMMEDIATE
Contact: Gavin R. Arton
(441) 292-8515
XL CAPITAL PROVIDES SUPPLEMENTAL SELECTED FINANCIAL DATA
HAMILTON BERMUDA January 24, 2000 -- XL Capital Ltd (NYSE:XL) today provided
supplemental selected quarterly and year to date financial data for 1998 and
1999.
This supplemental selected financial data includes the merger with NAC Re
Corp., which has been accounted for as a "pooling of interests" under U.S.
generally accepted accounting principles ("GAAP"), and is based upon the
Company's new fiscal year end of December 31. The results of operations for any
interim period are not necessarily indicative of the results for a full year.
The data for the fiscal year ended December 31, 1998 was derived from adjusted
audited financial statements based on the Company's previous year end of
November 30, 1998. This presentation does not include all of the information and
footnotes required by U.S. GAAP for complete financial statements.
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 and NAC Re Corp., provides insurance and reinsurance
coverages and financial products worldwide. As of September 30, 1999, XL had
consolidated assets of approximately $14.1 billion and consolidated shareholders
equity of approximately $5.4 billion. Additional information is available on the
XL web site: www.xl-capital.com.
# # #
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<TABLE>
<CAPTION>
XL CAPITAL LTD
SUPPLEMENTAL SELECTED FINANCIAL DATA
(UNAUDITED)
Twelve Months
Ended Nine Months Ended Six Months Ended Three Months Ended
December 31 September 30 June 30 March 31
------------ -------------------------- -------------------------- ---------------------------
1998 1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ----------- ------------ ------------
Selected Income Statement Data
<S> <C> <C> <C> <C> <C> <C> <C>
Gross premiums written 1,643,539 $1,862,913 $1,237,959 $1,233,296 $743,556 $ 731,991 $ 443,740
Net premiums written 1,324,264 1,466,823 1,036,855 972,006 626,544 583,921 378,395
Revenues
Net premiums earned 1,324,291 1,289,868 922,853 801,139 538,717 386,753 274,149
Net investment income 417,290 398,833 291,426 268,273 180,106 135,680 92,923
Realized (losses) gains 211,204 72,389 164,225 85,060 135,749 67,476 77,349
Equity in net earnings
of affiliates 50,292 24,707 53,673 9,335 36,222 (7,307) 15,501
Fees and other income 22,325 43,221 14,176 14,421 5,609 10,551 4,172
----------- ----------- ----------- ----------- ---------- ------------ -----------
2,025,402 1,829,018 1,446,353 1,178,228 896,403 593,153 464,094
Expenses
Net losses and loss expenses 841,517 875,635 589,135 565,622 336,639 214,450 175,763
Acquisition costs and
administration expenses 436,598 498,687 307,172 326,615 173,448 143,157 84,040
Interest expense 33,444 35,220 23,333 19,806 14,613 11,025 7,111
Amortization of intangible
assets 26,881 37,049 12,685 23,185 6,557 10,407 3,347
Income before minority interest
and income tax expense 686,962 382,427 514,028 243,000 365,146 214,114 193,833
Net income 656,330 $ 409,921 $ 491,993 $ 272,519 $351,722 $ 209,811 $ 186,300
Weighted average number of ordinary
shares and ordinary share
equivalents (diluted) 116,206 130,727 110,656 131,359 105,173 132,404 105,270
Per Share
Net income $ 5.68 $ 3.15 $ 4.47 $ 2.08 $ 3.36 $ 1.59 $ 1.78
Realized losses (gains) and
one time charges (1.59) 0.23 (1.25) 0.14 (1.25) (0.50) (0.71)
----------- ----------- ----------- ------------ ---------- ----------- -----------
GAAP operating income $ 4.09 $ 3.38 $ 3.22 $ 2.22 $ 2.11 $ 1.09 $ 1.07
Amortization of intangible
assets 0.22 0.28 0.11 0.17 0.07 0.08 0.03
----------- ----------- ----------- ------------ ---------- ----------- -----------
Economic operating income $ 4.31 $ 3.66 $ 3.33 $ 2.39 $ 2.18 $ 1.17 $ 1.10
=========== =========== =========== ============ ========== =========== ===========
Operating ratios:
Loss and loss expense 63.5% 60.5% 63.8% 58.7% 62.5% 55.4% 64.1%
Underwriting expense 31.6% 35.2% 31.4% 35.1% 32.2% 37.0% 30.7%
Combined expense 95.1% 95.7% 95.2% 93.8% 94.7% 92.4% 94.8%
</TABLE>
This consolidated financial data includes the merger with NAC Re Corp., which
has been accounted for as a "pooling of interests" under US GAAP, and is based
upon the Company's new fiscal year end of December 31.
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<TABLE>
<CAPTION>
XL CAPITAL LTD
SUPPLEMENTAL SELECTED FINANCIAL DATA
(UNAUDITED)
Twelve Months
Ended Nine Months Ended Six Months Ended Three Months Ended
December 31 September 30 June 30 March 31
------------ -------------------------- -------------------------- ---------------------------
1998 1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ----------- ------------ ------------
Selected Income Statement Data
<S> <C> <C> <C> <C> <C> <C> <C>
Gross premiums written $405,580 $629,617 $494,403 $501,305 $ 299,816 $ 731,991 $ 443,740
Net premiums written 287,409 494,817 410,311 388,085 248,149 583,921 378,395
Revenues
Net premiums earned 401,438 488,729 384,136 414,386 264,568 386,753 274,149
Net investment income 125,864 130,560 111,320 132,593 87,183 135,680 92,923
Realized (losses) gains 46,979 (12,671) 28,476 17,584 58,400 67,476 77,349
Equity in net earnings of
affiliates (3,381) 15,372 17,451 16,642 20,721 (7,307) 15,501
Fees and other income 8,149 28,800 8,567 3,870 1,437 10,551 4,172
---------- ---------- ----------- -------- ------------ --------- ------------
579,049 650,790 549,950 585,075 432,309 593,153 464,094
Expenses
Net losses and loss expenses 252,382 310,013 252,496 351,172 160,876 214,450 175,763
Acquisition costs and
administration expenses 129,426 172,072 133,724 183,458 89,408 143,157 84,040
Interest expense 10,111 15,414 8,720 8,781 7,502 11,025 7,111
Amortization of intangible
assets 14,196 13,864 6,128 12,778 3,210 10,407 3,347
Income before minority interest
and income tax expense 172,934 139,427 148,882 28,886 171,313 214,114 193,833
Net income 164,337 $137,402 $140,271 $ 62,708 $ 165,422 $ 209,811 $ 186,300
Weighted average number of
ordinary shares and ordinary
share equivalents (diluted) 131,647 129,032 121,076 129,876 105,173 132,404 105,270
Per Share
Net income $ 1.25 $ 1.07 $ 1.17 $ 0.49 $ 1.58 $ 1.59 $ 1.78
Realized losses (gains) and
one time charges (0.33) 0.10 (0.07) 0.64 (0.54) (0.50) (0.71)
---------- ---------- ----------- -------- ------------ -------- ------------
GAAP operating income $ 0.92 $ 1.17 $ 1.10 $ 1.13 $ 1.04 $ 1.09 $ 1.07
Amortization of intangible
assets 0.11 0.11 0.05 0.10 0.03 0.08 0.03
---------- ---------- ----------- -------- ------------ -------- ------------
Economic operating income $ 1.03 $ 1.28 $ 1.15 $ 1.23 $ 1.07 $ 1.17 $ 1.10
========== ========== =========== ======== ============ ======== ============
Operating ratios:
Loss and loss expense 62.9% 63.4% 65.7% 61.8% 60.8% 55.4% 64.1%
Underwriting expense 32.2% 35.2% 30.3% 33.4% 33.8% 37.0% 30.7%
Combined expense 95.1% 98.6% 96.0% 95.2% 94.6% 92.4% 94.8%
</TABLE>
This consolidated financial data includes the merger with NAC Re Corp., which
has been accounted for as a "pooling of interests" under US GAAP, and is based
upon the Company's new fiscal year end of December 31.
