XL To Realign Lloyd’s Operations

Bermuda’s XL Capital announced that it “is realigning” its Lloyd’s operations. As of January 1, 2002 it will take over all the funding of two syndicates run by XL Brockbank Ltd., and two other syndicates, numbers 588 and 861, “backed entirely by third-party capital providers for the 2001 year of account, will cease to trade.”

Syndicate number 1209, which specializes in Marine lines, Specie, Bloodstock, War & political Risks, International Aviation and selected Non-Marine lines (Professional Indemnity and Property) will have a capacity of £360 million ($509.4 million).

Syndicate number 990, which specializes in “a general Non-Marine account with an emphasis on long-tail business,” will have a capacity of £80 million ($113.2 million).

The action would seem to assure that at least one of Lloyd’s corporate capital providers doesn’t plan to abandon the London market. “XL remains firmly committed to providing the highest quality of specialty line products and services to its clients and brokers, both through its Lloyd’s operations and other operating subsidiaries,” said the announcement.

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