-- with the first signs of an upturn in the insurance market emerging.

Net income for the third quarter rose by 1.53 percent from $137.4 million in 1999 to $139.5 million this year.

The figures do not include the $100 to $125 million cost of redundancy packages which were announced last month when the company reorganised and let go of 120 staff worldwide.

The amounts will be included up in the fourth quarter figures released in the new year.

"We are seeing positive signs of a market turn in nearly all of our property-casualty businesses and continued growth in our financial services segment,'' said Brian O'Hara, president and chief executive officer of XL.

"Our recently announced realignment positions the company for future growth in those areas in which XL has chosen to specialise.'' He added the company was finalising the cost of the restructuring which would appear in the next quarter's results.

Net income for the third quarter was reported at $1.10 per share, compared to $1.06 per share in the same period the year before.

Economic operating income was $151.9 million or $1.20 per share this year, down 7.66 percent from $164.5 million or $1.28 per share during the same period last year.

Operating income for the third quarter 2000 was $138.3 million or $1.10 per share, down just over 8 percent from $150.7 million or $1.17 per share in the same time period last year.

Mr. O'Hara added: "The company's operating results, which are in line with expectations, reflect the impact of deliberate actions taken in late 1999 and early 2000 to focus on our most recently acquired operations on more profitable lines and increase in our loss ration assumptions for many lines of business.'' Total revenues were up by over 7 percent during the period, from $646.8 million in 1999 to $694.6 million in 2000.

Gross premiums written were also up by nearly 17 percent from $629.6 million for the third quarter of 1999 to $736.6 million in the same period this year.

Net premiums earned were $540 million in the third quarter of 2000, compared to $488.7 in the same period in 1999.

Net investment income, excluding net realised investment gains, was $134.6 million, compared with $126.6 million in 1999's third quarter.

XL's equity in the net income of its affiliates for the third quarter was $18.4 million in 2000 compared to $15.4 million in 1999.

Total assets at September 30, 2000 were $16.4 billion, up 8.6 percent from $15.1 billion at the same time in 1999. Shareholder's equity was $5.6 billion at both September 30, 2000 and December 31, 1999.

Fully diluted book value per share was $44.78 at September 30, 2000, compared with $43.13 at December 31, 1999.