XL Capital To Absorb Le Mans Re

By Daniel Hays

NU Online News Service, June 17, 11:48 a.m. EST?XL Capital Ltd. of Hamilton, Bermuda announced today that it plans to close the Miami office of Le Mans R? as part of a plan to integrate its reinsurance operations.

The company said the move follows January's ratification of XL's previously announced acquisition of a 67 percent majority shareholding in Le Mans R?, a joint venture reinsurer formed by XL and MMA in 1999.

Le Mans' Miami office has 13 employees, and XL is looking to place as many of them as it can internally, according to Ivan Vega, an underwriter in the office.

The proposed integration, XL said, is intended to streamline its reinsurance operations and is subject to, among other things, the satisfaction of certain conditions, including the receipt of regulatory and other approvals.

Le Mans R? and XL Re Ltd., it was explained, propose to merge their branches in Singapore. The proposal also calls for the closure of the Le Mans R? underwriting operation in Miami and the merger of Le Mans R?'s continuing Miami-based business with XL Re Latin America Ltd.'s operations.

Henry Keeling, chief executive of reinsurance operations for XL Capital Ltd., said Le Mans R? is the primary vehicle for the expansion of XL Re's position in Continental Europe.

The company believes, Mr. Keeling said, "that XL needs to dedicate as much of Le Mans R?'s professional resources, energy and expert management time to implementing our strategy in this large and very important market."

He said the goal behind the proposal to merge the Singapore branches is to create an operation that will act as a regional hub for the development of XL Re Ltd.'s business in Asia and Australia.

Mr. Keeling explained that Le Mans R? will be responsible for the runoff of its existing portfolio in Singapore, but continuing business will be conducted in the name of XL Re Ltd.

Additionally, he said, the Le Mans R? operation in Miami, which has responsibility for property and casualty business in Latin America and the Caribbean, will be closed and the Le Mans R? office in France will become responsible for the management and runoff of its existing portfolio.

"At the same time, XL Re plans to reduce the scope of its operations in Australia, while maintaining its existing branch license there. While business will continue to be underwritten in Sydney, management of the Australian branch will be directed from Singapore," Mr. Keeling said.

XL Capital Ltd., through its operating subsidiaries, is a worldwide provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies, and other enterprises.

As of March 31, XL Capital Ltd. said it had consolidated assets of approximately $30.6 billion and consolidated shareholders' equity of approximately $5.5 billion.

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XL Capital To Absorb Le Mans Re

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