Of the $450 million in total expected net claims, approximately $260 million is expected to be attributable to the Company's reinsurance segment with the balance of approximately $190 million attributable to the Company's insurance segment.
As a result of these estimated claims, the Company expects to record a charge of approximately $420 million after tax, which will adversely affect its third quarter and full year results but will not materially affect its overall financial condition.
XL Capital Group intends to release its third quarter financial results after the close of regular stock market hours on Monday, November 1, 2004. A conference call to discuss the Company's third quarter results will be held at 10:00 a.m., Eastern Time on Tuesday, November 2, 2004.
XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products and services to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As of June 30, 2004, XL Capital Ltd had consolidated assets of approximately $45.5 billion and consolidated shareholders' equity of approximately $7.1 billion. More information about XL Capital Ltd is available at www.xlgroup.com.
This press release contains forward-looking statements about the effects of the storms mentioned above in the third quarter of 2004 on the Company's results of operations and financial condition. Such statements involve inherent risks and uncertainties. Statements that are not historical facts, including statements about XL's beliefs or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements and therefore you should not place undue reliance on them. A non - exclusive list of the important factors that could cause actual events or results to differ materially from those in such forward-looking statements include the preliminary nature of reports and estimates of loss to date, the limited ability of claims personnel to make inspections to date and the other important factors set forth in XL's most recent annual report on Form 10-K, quarterly report on Form 10-Q and XL's other documents on file with the Securities and Exchange Commission. XL undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future developments or otherwise.