XL Capital Ltd., Kemper Insurance Cos. and AIG Life Insurance Co. were among five insurance companies to lose $78.8 million after a New Jersey broker pocketed premiums collected for more than 100 housing, retail and office complexes, the Star-Ledger of Newark, New Jersey, reported yesterday.

Vito Gruppuso, 54, faces ten years in prison after pleading guilty to three counts of theft in Superior Court in Morristown, New Jersey, the paper said. He'll also face federal charges for allegedly tricking banks into loaning money to his Hanover, New Jersey-based company, National Program Services, the paper said.

Kemper lost $48 million, while AIG lost $6.3 million, theStar-Ledger said, citing state insurance fraud prosecutors.

Employers Insurance Co. of Wausau lost $3.75 million, Aon Corp.'s Virginia Surety $15.8 million and XL Capital Ltd. lost $4.9 million, the paper said.

The insurance companies ultimately had to pay the claims of Gruppuso's clients as required by general contract law, the paper said. The scheme, which began in 1998, is likely the biggest property insurance fraud in New Jersey history, the paper said. Gruppuso was arrested in May, 2002, the paper said.