XL Group now accepting Collateral Trusts for Corporate and Captive Insurance Programmes
London, UK - January 17, 2012
London, UK – 28 May 2012 - XL Group plc's (NYSE: XL) insurance operations ("XL Group") today announced that it is now accepting Collateral Trusts in lieu of Letters of Credit (LOCs) used as collateral for corporate deductible and captive insurance programmes in the UK.Letters of Credit (the traditional method of providing collateral for corporate deductible and captive insurance programmes) are often expensive to maintain, cumbersome to administer, and are treated as contingent liabilities on the customer's balance sheet. XL Group recognises the need of many of our clients to seek alternatives to LOCs and are now allowing for the Collateral Trust to be used in their place. Placing cash in a bankruptcy-proof Trust is now a fully acceptable form of collateral to XL Group and can be used in place of an LOC for our existing clients.Wells Fargo Bank has been chosen as XL Group's preferred provider of this service.The Trust is quick to establish and relatively inexpensive to maintain. Further, it does not need to be renewed each year. Additionally, it may be possible for the assets in the Trust to remain on the balance sheet of the depositor. By replacing LOCs in this way, use of the Trust may be able to help free up otherwise encumbered credit lines.James Martin, Client and Distribution Leader, XL Group said, "We are delighted to be working with Wells Fargo to offer this additional service to our customers. In today's economic climate, LOCs are proving more costly to businesses both in management fees and as they tie up otherwise useful capital. Offering the Collateral Trust solution to our clients provides a valuable alternative."Robert Quinn, Senior Vice President, Collateral Trust Services, Wells Fargo Bank commented, "Offering an alternative to insurance related LOCs that will save money, unencumber credit lines, and reduce workload clearly demonstrates XL Group's commitment to their clients. Wells Fargo is pleased to serve as the preferred trustee."About XL Group plcXL Group plc, through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward. Its principal offices are located at No.1 Hatch Street Upper, 4th Floor, Dublin 2, Ireland. To learn more, visit www.xlgroup.comAbout XL's Insurance OperationsXL Group plc's insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit www.xlgroup.com/insurance XL Group is the global brand used by XL Group plc's insurance subsidiaries.
Christine WeirskyCommunication Director, North America