XL Launches Commercial Property Insurance Initiative

June 28, 2004

XL Capital Ltd. announced that its insurance operations will provide commercial property insurance capacity of up to $500 million, allowing it to underwrite entire global property programs on a selective basis.

XL’s Chief Executive Officer of Insurance Operations, Clive Tobin, said: “Many customers are looking for access to large lines of coverage backed by financial strength and high ratings. With the active support of our reinsurers, we are now able to meet this demand globally, while at the same time providing access to our proven technical underwriting expertise, superior customer service execution and our global network. This is an important strategic initiative that will enable us to compete selectively for entire programs.”

XL Insurance Operations’ Chief Underwriting Officer for Global Property, Robert Klepper, explained: “Over time, XL’s insurance units have been respected co-insurance participants and leaders in the large Risk Management client segment. Our substantial $250 million capacity made XL a leading partner on many of the largest and most complex property insurance programs in the world. Today, with our enhanced focus on the Middle and Upper-Middle Market, XL offers property clients a quality alternative with limits and credit quality that currently do not exist in that market segment. Our new capabilities enable us to take on the role of sole provider of insurance capacity, in addition to providing comprehensive risk engineering, claims and fronting services for many of these clients. However, where we are unable to bind an entire program, for example where we are co-insuring with another carrier, we will not be offering our full capacity of $500 million. In these situations, our existing $250 million maximum capacity will continue to apply.”

The property division of XL’s insurance operations provides all risk global property coverages to large corporations in a broad range of industries including manufacturing, high technology and commercial real estate.

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