XL in Joint Venture with Brazil’s ITAU

September 5, 2006

Bermuda’s XL Capital Ltd. and Banco Itaú Holding Financeira S.A. (ITAÚ) have entered a definitive agreement to form a joint venture insurance company in Brazil. “The announcement follows news on January 30 that both parties had signed a Memorandum of Understanding,” and is “subject to final regulatory approval,” the bulletin noted.

“The new insurance company, ITAÚ XL Seguros Corporativos S.A. (ITAÚ XL), will combine the current Brazilian Property, Casualty and Specialty commercial insurance business of ITAÚ and XL and will operate in Brazil’s commercial insurance market,” the announcement continued.

ITAU’s CEO Ruy Moraes de Abreu, commented: “ITAÚ XL will combine ITAÚ’s Brazilian market expertise and penetration with XL’s outstanding underwriting knowledge and access to reinsurance capacity in commercial lines and large insurance risks. We strongly believe that this joint venture will create a winning platform to develop this market in Brazil, with advantages to our clients and brokers.”
Clive Tobin, Chief Executive of XL Insurance [XL’s global brand name], stated: “This joint venture underscores XL’s strategic approach to opportunities in emerging markets. We are delighted to have joined forces in Brazil with such a respected organization as Banco Itaú. We look forward to servicing the local needs of our combined clients, as well as providing them with access to products and services across our global network. This is an important commitment for both our companies and I believe it positions us well to meet the current and future needs of the Brazilian market.”

XL’s bulletin also noted: “ITAÚ is the second largest private bank in Brazil in terms of assets and one of the largest in terms of market capitalization among Latin American Banks. It is the third largest provider of commercial lines insurance in Brazil. As of June 30, 2006 ITAÚ had assets of $ 79.7 billion and shareholders’ equity of $ 8.1 billion.”

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