NEW YORK (AP) - Bermuda-based insurer XL Capital paid out more than $16 million in compensation to the two chief executives that oversaw the company in 2008.

Non-executive chairman Brian O'Hara, who served as CEO until April 30, took home $8.7 million in compensation in 2008, a 17 percent increase from the full-year's pay he received in 2007.

His replacement, Michael McGavick, took home $7.5 million in compensation for the eight months he served as the Bermuda-based insurer's CEO.

The increased compensation for XL's CEOs came during a tumultuous year for the insurance sector. The sector struggled with the broader financial-services sector as the credit crisis mushroomed throughout the year.

Shares of XL Capital lost nearly 93 percent of their value in 2008.

XL lost $2.63 billion, or $11.02 per share, in 2008, compared with profit of $206.4 million, or $1.15 per share, in 2007.

Despite the struggles of the company, its executives took home more pay than in 2007. Mr. O'Hara's salary declined 67 percent to $333,333 as he only served as CEO for one-third of the year. His bonus dropped 60 percent to $600,000.

The primary increases in Mr. O'Hara's pay package came from other compensation - which includes a travel allowance, retirement contributions and a housing allowance, among other items - and from the value of stock options and restricted stock he was awarded in 2008.

Mr. O'Hara's stock options and restricted stock payments more than doubled to $4.8 million in 2008. Those stock options have likely lost value with the company's tumbling stock price. The calculation for options is based on the value of the stock at the time the option is awarded. Both of Mr. O'Hara's stock awards came in February 2008.

He took home $861,058 in other compensation, compared with $684,471 in 2007.

During his first eight months of work, Mr. McGavick received a salary of $666,667. His bonus totalled $3.5 million. The remainder of his salary came from other compensation and stock options and restricted stock awards.

Mr. McGavick received $881,956 in other compensation, primarily tied to helping pay for his relocation expenses as he moved to Bermuda to take over as CEO. Mr. McGavick received $2.4 million in stock options and restricted stock awards.

The Associated Press calculations of total pay include executives salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The calculations do not include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.