Bermuda based XL Capital Ltd. announced the formation of “a new unit, Element Re, to provide risk management insurance, reinsurance and financial products.”
“Element Re will offer customers a range of non-catastrophic weather risk mitigation products designed to protect against the negative impact that normal weather fluctuations can have on the financial performance of companies operating in a variety of industries,” said the announcement.
CEO Jeffrey Bortniker indicated that the emphasis would be on insurance products rather than derivatives, saying “We have identified a growing demand for weather protection in insurance form, something that is more appealing to corporations around the world.”
President and COO Lynda Clemmons explained that the market for “weather-related risk management products” has expanded beyond energy and utility companies. “Companies from far-ranging sectors including agriculture, construction, retail, transportation and entertainment realize the effects weather can have on the bottom line,” she said.
XL Financial Products CEO Robert Lusardi, who heads the unit that includes Element Re, said that “our customers have been looking for sophisticated insurance and financial solutions to their weather risk management challenges. He expects that Element Re will be able to combine the extensive experience of its management team ” with “the capital markets experience of the principals.”
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