Bermuda’s XL Capital Ltd. has received approval for a new fully licensed European reinsurance company, XL Re Europe Limited, based in Dublin, which will become its European reinsurance platform. XL previously announced its reorganization plans last August, along with a general business reorganization of its European units (See IJ Website, Aug. 2 and Oct. 17).
“XL Re Europe Limited has been established with $1.5 billion of capital and surplus, and Standard & Poor’s has today confirmed that it will be rated ‘A+’, in line with XL’s other Reinsurance entities,” said the announcement (See also following article). It has two new branches in the UK and France to facilitate the assumption of business previously underwritten by the UK branch of XL Re Ltd. and XL Re Europe SA.
“The non-life business of the UK branch of XL Re Ltd. will be transferred into XL Re Europe Limited on January 1, 2007 under Part VII of the Financial Services & Markets Act 2000,” the bulletin explained. “This scheme has been approved by the High Court of Justice (UK). The business of XL Re Europe SA has been transferred to the new company under the ‘Transmission Universelle Du Patrimoine’ (TUP) process.”
David Watson, previously XL Re Ltd’s General Manager in London, has relocated to Dublin to become President and CEO of the new company. Mark Berry, previously head of XL Re Ltd’s Special Risks underwriting department, is now General Manager in London, reporting to Mr. Watson. Other senior management, including the Chief Financial Officer and Chief Underwriting Officer, will be based in Dublin, along with underwriting and administrative teams.
Jamie Veghte, Chief Executive of XL’s Reinsurance General Operations, commented: “We welcome the announcement by Standard & Poor’s today that XL Re Europe Limited will be rated A+, the same as our other XL Re companies. Our priority is to ensure that our clients will continue to benefit from our financial strength and high ratings. We are also very pleased to have our entire European operations under one unified management team led by David Watson. This will ensure consistency in our approach and a seamless delivery of products and services to the market.”
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