XL Capital chief executive Brian O?Hara is likely to keep his job, having secured the continued confidence of the company?s board of directors by raising close to $3 billion in new capital within a period of days.

Mr. O?Hara, who has guided XL through more than a decade of significant growth, had come under pressure recently after investors felt let down by management who had promised an actuarial decision related to its 2001 acquisition of parts of Swiss insurer Winterthur would bring in $1.45 billion to be held in reserve for claims being filed on policies acquired in the deal.

An official decision from the actuary this week instead decided in favour of Credit Suisse, which had sold Winterthur to XL, meaning it only has to pay a fraction of what XL was demanding ? $575 million, including interest.

XL, a global insurer and reinsurer based in Bermuda, said it will have to take a charge resulting in an estimated net loss of more than $800 million in the fourth quarter, on top of a loss of more than $1 billion in the third quarter because of costly claims from the spate of deadly hurricanes that hit the US this year.

?Mr. O?Hara has the full support of the company and is totally committed to the stewardship of XL Capital,? said a company spokesman yesterday, signalling continued support, which goes contrary to speculation that Mr. O?Hara could be ousted mushrooming after the actuarial blunder became known.

Citigroup analyst Ron Franks said in an investment note that Mr. O?Hara was under pressure, and comments from ratings agency Standard & Poor?s also raised the prospect that investors were losing confidence in XL?s leadership.

?Mr. O?Hara?s credibility is in poor shape, not only with investors but also, judging from its public comments, with [rating agency Standard & Poor?s,? Mr. Franks said last week.

At issue are acquisitions that have been made by XL on Mr. O?Hara?s watch that have ended up costing the company much more than first anticipated, including the Winterthur deal.

Now Mr. O?Hara may be on the road to redeeming himself in the eyes of disgruntled investors because of the speed with which he was able to raise capital, both to help the company?s balance sheet recover from losses over the two quarters, and to enable the company to be able to take advantage of rising premiums in 2006.

Investors are flocking to invest in the sector because insurance and reinsurance rates are expected to rise after Hurricane Katrina wiped up to $60 billion from insurance balance sheets, resulting in premium pricing rising in 2006, by estimates, as much as 40 percent.

So far, at least $10 billion has been raised by established insurers and an equal amount is also being invested in new companies being formed to also take advantage of the turn in pricing.

XL?s capital raising programme, which is expected to close tomorrow, will raise approximately $3 billion of new capital for the company.

The new capital is being raised through the sale of stock and convertible notes.

On Tuesday XL?s offering of 33.8 million ordinary shares priced at $65 a share, and $745 million of equity security units were priced at $25 a unit. The units are a hybrid of forward purchase contracts and debt securities.

?This result represents a tremendous vote of confidence in XL Capital and in its CEO Brian O?Hara who led the capital raising road show team,? the spokesman said.