Medindia

X

XL Capital Ltd Issues Statement Regarding Merrill Lynch Lawsuit Against XL Capital Assurance Inc. (XLCA) a Subsidiary of Security Capital Assurance Ltd

Wednesday, June 11, 2008 General News J E 4
Advertisement
HAMILTON, Bermuda, June 10 XL Capital Ltd(NYSE: XL) (the "Company") announced today that it is not involved in asummary judgment handed down by the U.S. District Court for the SouthernDistrict of New York in favor of Merrill Lynch International. Merrill LynchInternational filed a complaint against Security Capital Assurance Ltd's(NYSE: SCA) subsidiary, XL Capital Assurance Inc. (XLCA), relating to certaincredit default swap transactions entered into by trusts and insured by XLCAfollowing SCA's IPO in August 2006. XLCA is not a subsidiary of XL CapitalLtd.

The swaps at issue in the lawsuit were entered into by XLCA after SCA'sIPO. XL Insurance (Bermuda) Ltd's reinsurance guarantee to a subsidiary of SCAapplies only to pre-IPO exposures.

Pursuant to a transition agreement entered into at the time of SCA's IPO,SCA is permitted to use the "XL" name until August 2008. XL owns approximately46% of the common equity interest of SCA. As the above dispute is betweenMerrill Lynch International and XLCA, any queries regarding the lawsuit shouldbe referred directly to the parties involved in the lawsuit.

Further information regarding XL's relationship with SCA may be found inXL's filings with the Securities and Exchange Commission.

XL Capital Ltd, through its operating subsidiaries, is a leading providerof global insurance and reinsurance coverages to industrial, commercial andprofessional service firms, insurance companies and other enterprises on aworldwide basis. As of March 31, 2008, XL Capital Ltd had consolidated assetsof $54.8 billion and consolidated shareholders' equity of $9.3 billion. Moreinformation about XL Capital Ltd is available at www.xlcapital.com.

SOURCE XL Capital Ltd
Advertisement


Advertisement

You May Also Like

Advertisement
View All

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
User Avatar
* Your comment can be maximum of 2500 characters
I agree to the terms and conditions
s
Eleven Going on 70: SCAN Health Plan Helps Fifth G...
S
Insulet Corporation Announces Pricing of $75 Milli...