Shares of Bermuda insurance giant XL Capital rebounded yesterday, as the US stock markets fell for the eighth successive day.

XL, which had lost around 80 percent of its market value over the previous two days, rose $1.42, or 35 percent, in New York Stock Exchange trading yesterday to close on $5.43.

The company released a statement yesterday morning to say its investment portfolio had lost an estimated $1 billion of its value during the third quarter.

And it added that its book value — assets minus liabilities — was between $21 and $22.50 per share, as of September 30 this year.

Another major player in the Bermuda insurance market, Ace Ltd., also announced that the value of its investment portfolio had shrunk by around $1.5 billion during the July through September period.

Meanwhile the Dow Jones Industrial Average fell 128 points, or 1.5 percent, to close a dismal week on 8,451. It would have been worse but for a late rally on a topsy-turvy day when the Dow traded within a 1,000-point range.

Last night finance ministers of the world's leading industrial nations were preparing to meet in Washington to discuss their response to the global credit crisis.

Stock markets elsewhere in the world plunged as well, by 8.8 percent in London and 9.6 percent in Tokyo.

XL wasn't the only Bermuda company to claw back some of its market value on a mixed day of trading for local insurers.

Reinsurer Validus shot up 21 percent, while RenaissanceRe gained nine percent, Aspen 10 percent, Allied World, Ace and Max Capital seven percent.

n More in Business, Page 7