XL reports turnaround in results for 2006

HAMILTON, Bermuda—XL Capital Ltd. reported profits of $1.72 billion for 2006 compared with a loss of $1.29 billion in 2005.

Hamilton, Bermuda-based XL's fourth-quarter earnings also rose, to $471.1 million vs. a loss of $821.9 million in the year-prior period.

XL's results for 2005 were hit after the insurer booked charges of $1.87 billion stemming from hurricane losses and $808.9 million relating to its acquisition of Winterthur International, a former unit of Winterthur Swiss Insurance Co., that XL acquired in 2001.

XL's 2006 combined ratio was 88.5%—a major improvement over 2005, when it was 132.9%.