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XL Capital Cleared to Set Up Nonlife Insurer in China

Posted on: Thu, 19 Nov 2009 09:34:00 EST

Symbols: XL

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BEIJING, Nov 19, 2009 (A. M. Best via COMTEX) --
XL | Quote | Chart | News | PowerRating -- The China Insurance Regulatory Commission said it has cleared Bermuda-based global insurance and reinsurance service provider XL Capital Ltd. [58361] to establish a property/casualty insurance company in China.

According to the regulator, the new operation is to be formed by the U.S. reinsurance unit of XL Capital and XL Capital Ltd., which respectively will hold a 51% and 49% stake in the new operation. Both parties will jointly have a year to set up the new Chinese operation.

XL Capital said that after this period of preparation and upon receipt of all regulatory approvals and licenses, it plans to establish an insurance subsidiary dedicated to serving both international corporations and its global program clients with operations in China.

Mike McGavick, chief executive officer of XL Capital, said in a statement that China's importance to any global company is "obvious." He added the company is committed to work closely with the CIRC to ensure it fulfill all regulatory requirements to "attain the operating license in due course."

"The increasing number of local companies with international activities, and the importance of this market to our global program clients with activities there make it critical for us to be present in China," said Dave Duclos, XL Capital's chief executive of insurance operations, in a statement.

"We look forward to the chance of bringing our global underwriting expertise and service capabilities to bear in this important market in the future," said Duclos.

In 2005, XL Capital set up a representative office in Beijing with an aim to deepen its understanding of the Chinese market.

This is the latest expansion for XL, which said last month that it had entered the commercial middle market in the Netherlands as part of an effort to expand its European business (BestWire, Oct. 5, 2009). XL also recently announced it had acquired an equine speciality underwriting and claims team from London-based Unicorn Underwriting Ltd., a subsidiary of THB Group plc (BestWire, Nov. 18, 2009).

XL Capital provides global insurance and reinsurance coverage to industrial, commercial and professional service firms, insurers and other enterprises on a worldwide basis through its operating subsidiaries.

XL Capital Group [86079] currently has a Best's Financial Strength Rating of A (Excellent).

(By Rebecca Ng, Hong Kong news editor: Rebecca.Ng@ambest.com)

For full details on Xl Capital Ltd (XL) XL. Xl Capital Ltd (XL) has Short Term PowerRatings at TradingMarkets. Details on Xl Capital Ltd (XL) Short Term PowerRatings is available at This Link.

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