EXEL Limited Announces Formation of X.L. Insurance Company of America

EXEL Limited has acquired Great Lakes American Reinsurance Company, which has been renamed X.L. Insurance Company of America, Inc. (XL). The company has obtained all requisite approvals from the New York State Department of Insurance and is actively seeking regulatory approvals in the other states in which Great Lakes was licensed to conduct insurance and reinsurance business.

XL will operate in the United States as an admitted carrier from its office located in New York City. The company will be separately capitalized and will be managed independently from EXEL's Bermuda and European operations.

"The completion of this acquisition represents the first step in establishing a platform in the U.S. to reach customers who have not traditionally accessed the Bermuda market," stated Brian M. O'Hara, President and Chief Executive Officer of EXEL Limited. ``I am pleased that Ian Heap, EXEL's first president has agreed to be Chief Executive Officer of X.L. America during the period of its formation and initial launch and that Elizabeth Eiss will be Senior Vice President of Underwriting and Operations. Other staff will be added over the next few months.''

Ian Heap has been a Director of EXEL Limited since 1987 and was Chairman of the Board from 1988 to 1992. He was President and Chief Executive Officer of EXEL and its wholly owned principal insurance subsidiary from 1987 to 1988. From 1992 to 1993, he served as President and Chief Executive Officer of Mid Ocean Reinsurance Company Ltd.

Elizabeth Eiss joins X.L. America from CNA, where she was most recently Group Vice President of Commercial Insurance. Prior to joining CNA in 1985, she was employed by the Hartford Insurance Group. Ms. Eiss brings considerable experience with U.S. customers and brokers, particularly for those commercial accounts generating up to $1 million per year.