Bermuda insurer XL Capital Ltd. last night said it lost $1.29 billion last year, after losing a reserve dispute with Credit Suisse, which sold XL a European insurance company in 2001.

The loss of $9.14 a share compared with income of $1.12 billion, or $8.13 a share in 2004, XL said in a statement.

The company's loss excluding a change in the value of investments, the most common measure for those who follow the insurance industry, was $1.53 billion, or $10.86 a share, about double average estimate of analysts, according to Bloomberg data.

General policy sales of $7 billion were little changed, while income from investments jumped 21 percent, before any interest received from Credit Suisse in settling the Winterthur dispute.

XL said it took a charge in the fourth quarter of $808.9 million, after interest, to reduce its reinsurance recoverables balance.

The company had been asking Credit Suisse to add $1.45 billion to its reserves for Winterthur, the European insurance business it bought from CS in 2001. Instead it received $575 million after an actuary ruled its reserve estimate was out of range.

The company said claims from Hurricane Wilma were costing it $247.1 million, and added $210.8 million for third-quarter storm losses.