XL Capital skips acquisition route, enters U.S. primary casualty market.XL Capital Group, the Bermuda-based company perhaps best known for providing reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and specialty insurance coverage, will enter the U.S. primary casualty risk market. The company has already offered such lines--including general liability, workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and auto--in Europe, since it acquired Winterthur International in 2001. "This completes the evolution that we started in 2001," said Clive Tobin, chief executive officer of XL's insurance operations. Tobin unveiled the U.S. primary casualty strategy at a press conference at the Risk and Insurance Management Society Risk and Insurance Management Society, Inc. (RIMS), founded in 1950, is a membership-based industry trade group, representing nearly 4,000 industrial, service, nonprofit, charitable, and governmental entities and serves more than 10,000 risk management professionals around the Inc.'s annual conference in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. . XL decided to create the business from scratch instead of buying a company that already had the business up and running. Perhaps because of past acquisitions that proved to be troublesome for the company, XL Capital Chief Executive Officer Brian O'Hara has declared himself a member of "Acquisitions Anonymous," joked XL spokesman Roger Scotton. One difficult acquisition for XL Capital had been Nac Reinsurance Corp., a U.S. casualty reinsurance company acquired in 1999 for $1.01 billion. Since then, XL has boosted Nac Re's reserves several times. Adverse prior-year claims development, mostly in that North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. casualty reinsurance business, triggered a $694 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern reserve charge for the fourth quarter of 2003, prompting an effort by XL to seek at least $750 million in additional capital in this year's first six months. |
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