Fitch Rates XL Re Europe ‘AA-‘

Fitch Ratings has assigned an “AA-” insurer financial strength (IFS) rating to XL Re Europe Limited with a stable outlook.

“The rating assignment follows the announcement that XL Re Europe will be XL Capital Ltd’s (XL) European reinsurance platform and has been established with $1.5 billion of capital and surplus,” said Fitch.

The rating agency also noted that the “non-life business of the UK branch of XL Re Ltd. will be transferred into XL Re Europe on Jan. 1, 2007 and the business underwritten by XL Re Europe SA has already been transferred into the new company. The rating assignment is equivalent to XL’s existing insurance and reinsurance subsidiaries’ ratings.”

See also IJ Website Oct. 23 (A.M. Best) and Oct. 19 (XL’s announcement and S&P ratings).