UPDATE 2-XL Capital posts $1.43 billion 4th-qtr loss

* Q4 net loss after charges, investment losses

* To cut dividend, slash 10 percent of work force

* Q4 oper income of $0.58/shr beats Wall St view

* Shrs up 8 percent after losing 14.5 pct in reg trading (Adds financial detail, CEO comment, background, byline)

By Lilla Zuill

NEW YORK, Feb 10 (Reuters) - XL Capital Ltd (XL.N), a large Bermuda-based insurer and reinsurer, posted a $1.43 billion fourth-quarter net loss on Tuesday, and said it will cut its dividend and slash 10 percent of its staff.

The quarterly loss was due to soured investments, hedge fund losses, and a charge to restructure its investment portfolio to reduce risk, it said.

XL, which hopes to reduce expenses by up to $120 million a year by 2010, trimmed its quarterly dividend to 10 cents a share from 19 cents. The company had about 4,000 employees at the end of 2007.

Hamilton, Bermuda-based XL hired Goldman Sachs last December to explore its possible sale.