XL to Restructure Reinsurance Operations Integrating Le Mans Re

June 18, 2002

Bermuda’s XL Capital Ltd. announced that plans are under way to restructure some of its reinsurance operations, primarily by fully integrating French-based Le Mans Re into its company structure.

XL acquired a majority 67 percent ownership in le Mans Re earlier this year from its partner in the company Mutuelles du Mans Assurance. “Le Mans Re has become the primary vehicle for the expansion of XL Re’s position in Continental Europe,” stated Henry Keeling, CEO of Reinsurance Operations for XL. “Therefore, we believe that XL needs to dedicate as much of Le Mans Re’s professional resources, energy and expert management time to implementing our strategy in this large and very important market.”

The various restructuring initiatives are designed “to streamline XL’s reinsurance operations,” and are subject to regulatory and other approvals and the satisfaction of certain conditions, including the receipt of and the execution of definitive documentation.

XL also proposes to merge the Le Mans Re and XL Re branches in Singapore, to close Le Mans Re underwriting operation in Miami, and to merge Le Mans Re’s continuing Miami-based business with XL Re Latin America Ltd’s operations.

Keeling added that, “The goal behind the proposal to merge the Singapore branches is to create an operation that will act as a regional hub for the development of XL Re LTD’s business in Asia and Australia. Le Mans Re will be responsible for the run-off of its existing portfolio in Singapore, but continuing business will be conducted in the name of XL Re Ltd.”

“Additionally, the Le Mans Re operation in Miami, which has responsibility for property and casualty business in Latin America and the Caribbean, will be closed and the Le Mans Re office in France will become responsible for the management and run off of its existing portfolio.”

He also indicated that,”XL Re plans to reduce the scope of its operations in Australia, while maintaining its existing branch license there. While business will continue to be underwritten in Sydney, management of the Australian branch will be directed from Singapore.”

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