Robert R. Lusardi, Chief Executive Officer of XL's Financial Products and Services division, said: "XL Capital Assurance is committed to building a financial guarantee business of the highest caliber. With AAA-rated U.S. and international execution capability in both primary insurance and reinsurance, embedded within a substantial multinational AA multiline insurance organization, XL expects to become a market leader in providing AAA-rated credit enhancement, capital markets and financial structuring solutions. We believe that our insured clients can benefit from the stand-alone capital base of XLCA as well as the financial, intellectual and product strengths of the parent company."
David C. Stevens, President and Chief Operating Officer of XLCA, said, "XL Capital Assurance has assembled a seasoned team of senior credit and transaction professionals with significant background in the financial guarantee and credit enhancement sector. Their experience in originating and executing transactions and their skill in managing credit underwriting and loss mitigation activities support our goal of providing highly efficient leadership and service in the industry."
Said Mr. Stevens: "With our triple-A rating, we believe that XL Capital Assurance will offer significant advantages to issuers seeking the benefits of financial guarantee insurance. We expect these benefits to include:
Capacity: Based on its own capital resources and the backing of its parent, XLCA offers a new credit of the highest quality to investors who are managing capacity limits to other guarantors.
Strong Portfolio: The A+ weighted average rating of XL's insured financial guarantee portfolio reflects XL's prudent risk underwriting standards.
Low Leverage: XL's financial guarantee portfolio has low leverage compared to general industry standards.
Parental Support: XLCA enjoys the strategic commitment of its AA-rated parent, which is one of the world's leading providers of insurance, reinsurance and financial products and services.
XLCA is a New York-domiciled monoline financial guarantee insurer, specializing in corporate and consumer asset securitization, essential infrastructure project finance, future flows and public finance. XLCA is currently licensed in 10 states and Singapore and is taking steps to be licensed in all 50 states in the U.S. as soon as possible. Additionally, XLCA is in the process of establishing offices in London and Madrid.
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. Additional information is available from the XL web site: www.xl-capital.com
This press release contains forward-looking statements. Such statements are based on current plans, estimates and expectations. Accordingly, forward-looking statements involve inherent risks and uncertainties and a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement, including, without limitation, that the financial guarantee business may not develop to the extent anticipated. XL Capital undertakes no duty to update publicly any forward-looking statements contained herein in light of new information or futu