Michael P. Esposito, chairman of Bermuda-based XL, resigned from the company's board of directors last week, saying he wanted to attend to the problems of the company's affiliate, Security Capital Assurance Ltd.
XL said Mr. Esposito would continue as SCA board chairman, in which XL has a 46 percent ownership. SCA has been battered by the effects of the subprime mortgage market collapse.
Earlier in 2007, Mr. Esposito announced his intention to step down from the XL board sometime in 2008. XL said he informed the board that "SCA's current need for his full attention in addressing various current issues outweighed his desire to adhere to his original retirement schedule."
"While I am saddened by my decision to retire from XL earlier than I had planned, I can reflect proudly on the past 21 years as a founding XL director on what has become a leading global franchise in the insurance and reinsurance industry and look forward to assisting SCA in addressing its current challenges," Mr. Esposito said in a statement the company released on his behalf.
Brian M. O'Hara, chief executive officer and acting chairman of XL, said: "We admire Mike's decision to forego the remainder of his XL board term to give his full attention to SCA."
At the same time, Alan Z. Senter, a director of XL, announced his resignation from the board of SCA.
Mr. O'Hara stepped down from the SCA board last month. Both Mr. O'Hara and Mr. Senter had served on the SCA board under a transition services agreement entered into between the two companies at the time of SCA's initial public offering.
XL has the right to appoint directors constituting a substantial minority of the SCA board. The company said it has informed SCA that it expects to do so in due course.
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