Labour Minister David Burch said there is no need to panic about international business, despite the possible loss of 40 jobs at XL Capital Ltd.

XL chief executive officer Michael McGavick said this week that consultation had started with employees aimed at eliminating "just below 40" posts — around 15 percent of the 260-strong workforce at the company's Bermudiana Road headquarters.

The company also announced that it intended to cut ten percent of its workforce worldwide.

Asked if it was the start of a trend Sen. Burch first said it was wrong to say XL were losing 40 jobs.

He said: "They are having a conversation with 40 people in their operation and there is the potential for that.

"I do not think, and we have not seen so far, that that is the trend.

"Look at the world, we are not doing so badly. Look at the US with the number of jobs being lost on a daily basis. XL is in a quite unique set of cirmcumstances in that the challenges they face started before all of this mostly of their own making, some bad decisions.

"What I am encouraged by, particularly in the case of XL who we met with recently, that there is a commitment to Bermuda and remaining domiciled here." Sen. Burch said there had been a reduction in XL's premiums written of about 25 percent which would impact on the staffing.

"But if one looks at the job categories they are reducing they are very much in the PR area, marketing," he said. "And so we will await the outcome of their discussions, it's like the first round some of those people weren't made redundant as a result of talking to them, that's how XL does it." He said the actual number of jobs lost would soon be known.

Last summer XL made 34 posts redundant and was able to place eight of those employees in other jobs at XL. The company on Tuesday announced a net loss of $1.43 billion for the fourth quarter and $2.6 billion for the year.