Mr. Rego has been named Executive Vice President and Chief Operating Officer of XL Financial Assurance Ltd. (XLFA), XL's triple-A rated financial guaranty reinsurance company in Bermuda, replacing James P. McNichols, who was named Global Chief Actuary of XL in April 2004. Mr. Rego had been Chief Operating Officer of XL Capital Group Assurance (U.K.) Limited (XLCA-UK), the London-based subsidiary of XL Capital Group Assurance Inc. (XLCA), XL's triple-A rated financial guaranty primary insurance company, since 2000. He joined XL in 1997 as a specialty financial lines underwriter and moved to the Structured Finance Group in 1998. Prior to XL, he worked at the Bank of Bermuda from 1982-1997.
Mr. Hnat, who replaces Mr. Rego, has been named Chief Operating Officer of XLCA- UK. His appointment is subject to approval by the Financial Services Authority in the U.K. Mr. Hnat, who had been XLCA's General Counsel since joining the company in 2000, was previously an Assistant General Counsel at MBIA Insurance Corporation and earlier, an Associate at the New York law firms Rogers & Wells and Mudge Rose Guthrie Alexander & Ferdon.
Robert R. Lusardi, Chief Executive of XL's Financial Products and Services Operations, said: "XL's fundamental strength in people is epitomized by the orderly internal transitions at the head of XLFA and XLCA-UK. Both Michael and Fred have made significant contributions to XL's financial guaranty business, which is an established triple-A franchise. Michael is a native Bermudian who moved to London four years ago, successfully established XLCA in London, and has now been promoted to Executive Vice President and Chief Operating Officer of XLFA. He is responsible for the day-to-day affairs of this triple-A rated business, and is moving back to Bermuda. Fred helped launch the successful start-up of XLCA. His experience is particularly valuable and relevant in the high-growth European marketplace, where significant structural changes, particularly regarding laws and market practices, are occurring. We look to Michael and Fred to continue XLFA and XLCA-UK's progress in becoming the premier providers of financial guarantee reinsurance and triple-A credit enhancement in their respective markets."
XLFA, rated triple-A by Moody's Investors Service, Standard & Poor's Ratings Services, and Fitch Ratings, provides financial guaranty reinsurance, primarily to monoline financial guarantors, focusing on asset-backed securitizations and global infrastructure, future flow, and municipal transactions. XLFA is owned 85% by XL Insurance (Bermuda) Ltd, a subsidiary of XL.
XLCA, also rated triple-A by Moody's Investors Service, Standard & Poor's Ratings Services, and Fitch Ratings, specializes in commercial and consumer asset securitization; structured investment products; U.S. public finance; and structured single risk, which comprises power & utilities, global infrastructure, future flow securitization, deposit insurance, and whole business securitization. XLCA is an indirect, wholly owned subsidiary of XL.
XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products and services to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As of March 31, 2004, XL Capital Ltd had consolidated assets of approximately $44 billion and consolidated shareholders' equity of approximately $7.4 billion. More information about XL Capital Ltd is available at www.xlgroup.com.