fourth-quarter profits, meeting expectations, because of gains from investments.

XL, which on Friday said it would buy the large multicorporates insurance business of Swiss-based insurer Winterthur for about $600 million, reported operating income of $143.0 million, or $1.13 a share.

That compared with profits of $32.3 million, or 25 cents a share, in last year's fourth quarter.

The results met analysts' average forecast of $1.13 cents a share, according to research firm First Call /Thomson Financial.

Net income, fell to $648,000, or a penny a share. That compares with $60.6 million, or 47 cents per share, in the same quarter a year ago. XL took one-time charges of $124.6 million, or 98 cents a share, in the fourth quarter.

It also realised after-tax investment gains of $1.12 a share.