The proposed integration, which is intended to streamline XL's reinsurance operations, is subject to, among other things, the satisfaction of certain conditions, including the receipt of regulatory and other approvals, and the execution of definitive documentation. Le Mans Ré and XL Re Ltd propose to merge their branches in Singapore. The proposal also calls for the closure of the Le Mans Ré underwriting operation in Miami and the merger of Le Mans Ré'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 Ré has become the primary vehicle for the expansion of XL Re's position in Continental Europe. Therefore, we believe that XL needs to dedicate as much of Le Mans Ré's professional resources, energy and expert management time to implementing our strategy in this large and very important market."
He added: "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. Le Mans Ré will be responsible for the run-off of its existing portfolio in Singapore, but continuing business will be conducted in the name of XL Re Ltd. Additionally, the Le Mans Ré operation in Miami, which has responsibility for property and casualty business in Latin America and the Caribbean, will be closed and the Le Mans Ré office in France will become responsible for the management and run off 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."
XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As of March 31, 2002, XL Capital Ltd had consolidated assets of approximately $30.6 billion and consolidated shareholders' equity of approximately $5.5 billion. More information about XL Capital Ltd is available at www.xlgroup.com.