Fitch Ratings is maintaining a stable outlook for XL Capital Ltd. in the face of the Bermuda-based company's announcement that fourth quarter estimates of losses would total approximately $139 million after-tax from the recent tsunami in South Asia and third-quarter hurricanes.

In a media release Friday Fitch Ratings said: “This announcement will not affect XL's ratings, including XL's ‘A' long-term issuer rating and the ‘AA' insurer financial strength (IFS) rating of lead (re)insurance companies XL Insurance (Bermuda) Ltd and XL Re Ltd. The Rating Outlook is Stable.”

The firm said that the ratings “continue to reflect XL's position within the global insurance and reinsurance markets, historical underwriting and earnings performance, strong operating cash flow, and adequate capital position at the parent and subsidiary level.”

XL's after-tax expense stems from $75 million in tsunami claims and $74 million from the four third-quarter hurricanes. The company said it underestimated hurricane claims in the third quarter when it reported $446 million.

After XL's estimates last week prompted Merrill Lynch analyst Jay Cohen to lower the ratings of XL from “buy” to “neutral”.

He gave the same downgrade to Chubb and also moved from a positive view of the industry to a neutral one.