XL Capital has announced that its first quarter income fell 99 percent on the year to $3.1 million due to lower sales and higher investment losses. In the same period of 2008, the company recorded income of $244.4 million.

XL’s P&C operations' combined ratio was 93 percent in the first quarter and is an improvement over the same quarter last year, and for the full year 2008.

Net income available to ordinary shareholders is $178.4 million or $0.53 per ordinary share,

XL’s CEO Michael McGavick said that he believes the first quarter performance demonstrates that the companyis on solid footing.