XL Gets Okay To Start XL Re Europe Ltd.

XL Capital Ltd announced today that it has received approval for a new fully licensed European reinsurance company--XL Re Europe Ltd.--based in Dublin, with $1.5 billion of capital and surplus.

Bermuda-based XL said David Watson, previously XL Re Ltd's general manager in London, has relocated to Dublin to become president and chief executive officer of the new company.

XL on Aug. 1 announced it would develop the new operation, which will serve as the firm's European reinsurance platform.

XL said Standard & Poor's confirmed today that the new company will be rated "A-Plus," in line with XL's other reinsurance entities.

The parent company said XL Re Europe Ltd. has formed two new branches in the United Kingdom and France to facilitate the assumption of business previously underwritten by the U.K. branch of XL Re Ltd. and XL Re Europe SA.

Non-life business of the U.K. branch of XL Re Ltd. will be transferred into XL Re Europe Ltd. on Jan. 1, 2007 under Part VII of the Financial Services and Markets Act of 2000, XL said.

The transfer has been approved by the U.K. High Court of Justice. The business of XL Re Europe SA has been transferred to the new company under the "Transmission Universelle Du Patrimoine" (TUP) process, the company said.

Mark Berry, previously head of XL Re Ltd.'s Special Risks underwriting department, is replacing Mr. Watson as general manager in London, and will report to Mr. Watson in Dublin.

Other senior management, including the chief financial officer and chief underwriting officer, will be based in Dublin, along with underwriting and administrative teams, XL said.

Jamie Veghte, chief executive of XL's Reinsurance General Operations, said the firm is "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."