XL Completes Le Mans Re Deal; Buys Stake in Stanfield Capital

January 15, 2002

Bermuda’s XL Capital Ltd announced that it has completed the acquisition of a 67% majority shareholding in Le Mans Re from Mutuelles du Mans Assurances (MMA), and, in an unrelated transaction, has acquired a minority interest in Stanfield Capital Partners LLC, an investment management company based in New York, which specializes in collateralized debt obligations and other credit-based products.

The shareholders of Le Mans Re, the joint venture reinsurer formed by XL and MMA in 1999, approved the acquisition at a joint special board meeting held January 11. MMA, which previously held 51 percent of Le Mans Re, will retain a 33 percent stake. Jean-Claude Seys, President of MMA, and Charles-Werner Skrzynski, who continues as President of Le Mans Re, will sit on the Le Mans Re Board of Directors. Other directors will include Henry C. V. Keeling Chief Executive of Reinsurance Operations for XL and President and CEO of XL Re Ltd., Michael A. Butt, a Director of XL, James H. Veghte, CEO of Le Mans Re, and John W. Hume, CFO of XL Re Ltd.

Keeling, said in the announcement that he was “very pleased that we have been able to complete our acquisition of a controlling interest in Le Mans Re in time for the start of 2002. With its good client connections and mature book of business, Le Mans Re enhances our access to the Continental European marketplace at a crucial time. We are fortunate that MMA continues to work with us in this joint venture and we look forward to making Le Mans Re an increasingly important element of our global strategy.”

XL also announced that it had acquired “a direct minority interest in Stanfield Global Strategies (formerly, Ceres Capital), an investment management firm majority-owned by Stanfield that manages a $3 billion investment grade securities conduit.” It will receive two seats on the management committee of Stanfield and one seat on Stanfield Global’s management committee.

Commenting on the acquisition,Sarah E. Street, Chief Executive Officer of XL subsidiary, XL Capital Investment Partners, Inc., stated that “We believe the breadth and depth of Stanfield’s experience in the credit markets will create numerous growth opportunities for their firm and will provide XL with invaluable expertise and insights. We look forward to working closely with Stanfield and its principals on new product launches, as they build upon their core expertise with the goal of creating a superior specialty asset management firm.”

Neither company gave further details concerning the cost of the acquisition or the size of XL’s stake.

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