Bmda: Well deserved pay cut

Bermuda insurance giant, XL Capital Ltd., announced on Friday that its chief executive officer, Brian O'Hara, would take a 61 percent pay cut for 2003 following the huge reserve charge the company took on its American operations.

And the company received another blow on Friday when ratings agency A.M. Best affirmed its good ratings - but gave them a negative outlook. This “negative outlook” will stay in place until a review of the company is completed in the second quarter of this year, said Best.

Last year XL Capital Ltd. discovered an $878 million shortfall in reserves and set up an investigation to get to the bottom of the matter - and took heavy multi-million dollar-related charges.