XL Not Exposed to Enron’s Commercial Paper

December 6, 2001

Bermuda’s XL Capital Ltd. announced that it does not have exposure to the asset-backed commercial paper program of Enron Funding Corp., a unit of the bankrupt energy giant. (See IJ Website, Dec.3).

XL said that although Winterthur International Insurance Company Ltd. a unit of Winterthur Swiss Insurance Company, which XL acquired in July, has issued a policy covering Enron Funding, this liability “was not assumed as part of the acquisition and is the subject of indemnification and reinsurance protection from Winterthur Swiss Insurance Company and one of its subsidiaries.”

XL further stated that it had “completed its review of financial guaranty, weather risk trading and investment exposures to Enron and believes it has only minimal exposures in these areas.”

There’s been some speculation that XL and ACE Ltd. may have substantial exposures through Directors and officers liabilities policies, but the company has made no direct comment. It did indicate that it was “continuing to monitor potential exposures to Enron from its property and casualty insurance and reinsurance businesses.”|”xl, not, exposed, enron’s, commercial, paper, , december, 6,, 2001, bermuda’s, xl, capital, ltd., announced, that, it, does, not, have, exposure, asset-backed, commercial, paper, program, of, enron, funding, corp.,, unit, of, bankrupt, energy, giant., (see, ij, website,, dec.3)., xl, said, that, although, winterthur, international, insurance, company, ltd., unit, of, winterthur, swiss, insurance, company,, which, xl, acquired, in, july,, has, issued, policy, covering, enron, funding,, this, liability, was, not, assumed, part, of, acquisition, subject, of, indemnification, reinsurance, protection, from, winterthur, swiss, insurance, company, one, of, its, subsidiaries., xl, further, stated, that, it, had, completed, its, review, of, financial, guaranty,, weather, risk, trading, investment, exposures, enron, believes, it, has, only, minimal, exposures, in, these, areas., there’s, been, some, speculation, that, xl, ace, ltd., may, have, substantial, exposures, through, directors, officers, liabilities, policies,, but, company, has, made, no, direct, comment., it, did, indicate, that, it, was, continuing, monitor, potential, exposures, enron, from, its, property, casualty, insurance, reinsurance, businesses.,

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