Under the agreement, ICAT will produce, underwrite and administer catastrophe peril policies for small and middle market commercial properties in conjunction with XL's US-based insurance operations.
XL's chief executive of insurance operations, Nicholas M. Brown, Jr., said: "We are very pleased to have forged a partnership with such a high-quality underwriting organization. This new business relationship with ICAT further enhances our commitment to providing superior underwriting, industry-focused expertise and specialized products that meet our clients' distinctive risk management needs."
Richard Banas, chief executive officer of XL Programs, the XL business unit which will coordinate the company's underwriting relationship with ICAT added: "Most impressive are ICAT's practical application of modeling tools to effectively price and underwrite catastrophe exposures and its advanced use of technology to create an efficient and effective operating platform over the Internet. This technological leadership is second to none in the insurance market and it is only matched by the caliber of ICAT's staff and their expertise in managing catastrophe risk."
John C. Graham, ICAT's chairman and chief executive officer commented: "The endorsement that XL has given to ICAT and our people is flattering. XL is recognized throughout the insurance and reinsurance industry as a financially strong and disciplined underwriter. This is a terrific opportunity for ICAT. The inclusion of XL as a key business partner is a statement of both quality and stability. We are very excited about what this will mean for our policyholders, our agents and brokers, and our reinsurance partners."
ICAT's policies will be provided through XL Specialty Insurance Company, a fully licensed and admitted company in 49 states; as well as Indian Harbor Insurance Company and XL Select Insurance Company which collectively have approved non- admitted status covering all 50 states. The XL Capital Group maintains an A+ rating from AM Best Company. The three companies ICAT will represent are each rated A+ ("Exceptional") by AM Best Company with Financial Size Rating of XV.
ICAT will offer its program through XL to new and existing customers when reinsurance placements and state filings are approved.
XL America, Inc. is the holding company for all of the U.S. operations of XL Capital Ltd. XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. More information about XL Capital Ltd is available at www.xlgroup.com. ICAT Managers was formed in 1998 and has grown to be one of the nation's top 100 brokers. The company has in-force premium in excess of $90 million and operates as a general agent in 15 states. ICAT specializes in providing catastrophe-peril coverage to small and middle market businesses located in catastrophe-exposed regions of the United States. ICAT's business is produced exclusively through licensed insurance agents and brokers who communicate electronically with ICAT via its website (www.icat.com). Underwriting applications are processed "real time", with immediate turnaround. The company is principally owned by its employees; a minority interest is held by Renaissance US Holdings, Inc. For additional information about ICAT, see the company's website: www.icat.com.
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This press release may contain forward-looking statements. Such statements are based on current plans, estimates and expectations. Accordingly, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward- looking statements is set forth in XL's most recent reports on Form 10-K, Form 10-Q and XL's other documents on file with the Securities and Exchange Commission. XL undertakes no duty to publicly update or revise any forward- looking statements contained herein in light of new information, future developments or otherwise.