XLFA offers triple-A reinsurance capacity in Bermuda to both monoline insurers and to multiline insurers writing financial guarantee insurance transactions.
Brian M. O'Hara, XL Capital President and CEO, said: "XL has become a leader in providing triple-A rated credit enhancement, capital markets and financial structuring solutions, and XLFA plays an important role in the parent company's strategy by providing triple-A rated international reinsurance capability. The Moody's rating is a further reflection of XL's conservative underwriting practices and our financial strength."
Robert R. Lusardi, Chief Executive Officer of XL's Financial Products and Services division, said: "XLFA now becomes one of the few operating companies in the world that enjoys triple-A ratings from all major rating agencies. This result reflects the conservative underwriting and credit culture at XLFA, as well as the support of XL Capital. Our clients will benefit not only from the stand-alone capital base of XLFA, but also from the financial, intellectual and product strengths of the XL Capital group."
XLFA Chief Operating Officer James McNichols said: "The triple-A rating from Moody's Investors Service establishes XLFA as a monoline financial guarantee reinsurer with the highest ratings. This further demonstrates our financial strength as a premier provider of financial guarantee reinsurance. We look forward to continuing to provide innovative solutions to our clients."
As at June 30, 2001, XLFA had shareholders' equity of approximately $293 million. XLFA also benefits from a $100 million stop-loss reinsurance agreement with an unaffiliated triple-A rated reinsurer.
XL Capital Ltd, through its principal operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. As at June 30, 2001, XL had consolidated assets of approximately $18.7 billion and consolidated shareholders' equity of approximately $5.7 billion. Additional information is available from the XL web site: www.xlcapital.com.