Capital's first-quarter profits up four percent.

XL, which opens its new headquarters building tomorrow, said operating income, excluding realized investment gains, was $156.7 million, or $1.24 per share.

That compares with $150.8 million, or $1.19 per share, in last year's first quarter.

The results beat analysts' average per share profit forecast by a penny, hitting the top end of analysts' $1.14 to $1.26 per share range of estimates, according to Reuters.

Net income income for the first quarter of 2001 was slightly down, at $218.9 million, compared with the same quarter last year when it was $223.8 million.

Brian O'Hara, president and chief executive officer, said: "After a prolonged downturn in virtually all of the insurance and reinsurance markets, it is now clear that these markets are seeing sustainable price increases. All of our operating segments experienced real growth in premiums written during the first quarter of 2001.

"Our acquisition of Winterthur International, which we announced in February, is proceeding well and we plan to complete the transaction early in the third quarter. Winterthur International will provide XL with a truly global insurance platform.'' XL Capital shares rose $4.58 to close at $72.08 on the news yesterday. XL released the news after the New York Stock Exchange closed on Monday.

XL Capital's total revenues were up $2.9 million to $767.1 million for the first quarter of 2001 compared with the first quarter of 2000. Total assets also increased to $17.6 billion over the last quarter of 2000 when they stood at $16.9 billion.

Shareholders' equity increased in the first quarter to $5.7 billion over $5.6 billion the previous quarter, and the fully diluted book value per share was $45.36 compared with $44.78 at December 31, 2000.

In the first quarter, gross premiums written were $1.2 billion, compared with $918.9 million in the same quarter 2000. Net earned premiums were $542.2 million compared with $494.5 million in the first quarter 2000.

Economic operating income was $171.2 million compared with $164.9 million.

The company's combined ratio for the quarter was 95.3 percent, two percent up on the same quarter last year. Loss ratios for the two quarters were 60.9 percent and 61.2 percent respectively.

On the Web: www.xl-capital.com Rates rise: Brian O'Hara