July 25, 2013
/PRNewswire/ -- XL Group ("XL") (NYSE: XL) and private equity firm Stone Point Capital LLC ("
") announced today the formation of a new
-based company to act as an investment manager in insurance-linked securities (ILS) and other reinsurance capital markets products. XL has a 75% ownership stake in the company and funds managed by
have the remaining 25% ownership.
When operations are fully commenced, the focus of the company will be on ILS and index-linked products as well as on XL-designed reinsurance products. The parties intend to invest up to an aggregate of
in funds to be formed, alongside potential third party investors. The new company will offer investors unique access to both reinsurance capital markets products as well as more traditional reinsurance opportunities, including certain risks currently written by XL. Investors will also benefit from XL's underwriting excellence, strong enterprise risk management, analytical strength and respected insight in the reinsurance market.
XL Chief Executive Officer,
, said: "Given the combined strength of XL's 20-plus years of world-class reinsurance underwriting expertise and
proven track record of investment success in the insurance and reinsurance sectors, this initiative fits perfectly with XL's continuing objective to offer innovative products to our clients and enhance profitability and long term value for shareholders."
Charles A. Davis
Chief Executive Officer, said: "
is delighted to be partnering with XL on this venture.
relationship with XL dates back to 1986 when our team assisted with the formation of the company. We believe that the convergence of the traditional insurance and reinsurance markets, and the capital markets will continue. This initiative with XL is designed to offer third-party investors an opportunity to invest in this asset class in partnership with one of the world's premiere reinsurance underwriters."