Decrease in income was driven by foreign exchange loss of $145.2 million, weakening of US dollar against Sterling

XL Capital has reported its second quarter 2009 results. The net income for the second quarter is $79.9 million or $0.23 per ordinary share, compared to $237.9 million or $1.33 per ordinary share for the second quarter of 2008.

Operating income was $162.6 million, or $0.47 per ordinary share, compared to $266.2 million, or $1.49 per ordinary share in the second quarter of 2008.

The decrease in net and operating income in the quarter was in part driven by a foreign exchange loss of $145.2 million, which results from the weakening of the US dollar against other major currencies, primarily Sterling.

Net investment income for the quarter was $328.3 million, as compared to $440.4 million in the prior year quarter. Net investment income from P&C operations, excluding investment income from structured products, decreased 26.7% from the prior year quarter, to $218.5 million.

For the first half of 2009, the company produced net income of $258.3 million or $0.76 per ordinary share, compared to $449.7 million or $2.52 per ordinary share, for the prior year period.