Hamilton, Bermuda – Battered by investment losses and a plunging share price, reinsurance giant XL Capital Ltd. has brought in Goldman, Sachs & Co. to help it explore strategic options.
Publicly traded XL issued a statement after its stock plunged by a third amid rumors that the company was contemplating a sale.
“The Company 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,” the statement reads. “In that regard, as can be expected in the current environment, the Company 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.”
XL also issued financial guidance, acknowledging that investment losses will impact its financial results in the current quarter. “In addition the Company 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,” the statement reads.
Source: XL Capital Ltd.
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