XL Capital has reported a loss of $314m for the fourth quarter of 2003, down on profits of $214m for the same period in 2002.
It said the fourth quarter result included a pretax $694m reserve charge, which the company had announced in January, caused by adverse developments in its North American reinsurance operations for casualty business between 1997 and 2001.
The combined ratio for the fourth quarter of 2003 increased to 133.25, up from a figure of 97.3% for the comparable period in 2002.
Gross written premiums in the company's general operations were also down in the fourth quarter, reaching $1.66bn, compared with $1.71bn for the fourth quarter of 2002.
Despite the fourth quarter losses, XL Capital said it had a net income of $371m for the year ending 31 December 2003, a small decrease from the $396m profits announced for 2002.
Gross written premiums for general operations over the full year were up on the 2002 figures to $8.62bn, compared with $7.71bn for 2002.
XL Capital's combined ratio for the full year showed a was 102%, compared with 97% for 2002.
