HAMILTON, Bermuda, Sept. 1 /PRNewswire-FirstCall/ -- XL Capital Ltd ("XL") and Banco Itau Holding Financeira S.A. ("ITAU") today announced that they have entered a definitive agreement to form a joint venture insurance company in Brazil. The announcement follows news on January 30 that both parties had signed a Memorandum of Understanding. The joint venture is subject to final regulatory approval.
The new insurance company, ITAU XL Seguros Corporativos S.A. ("ITAU XL"), will combine the current Brazilian Property, Casualty and Specialty commercial insurance business of ITAU and XL and will operate in Brazil's commercial insurance market.
Commenting on the new joint venture, Mr. Ruy Moraes de Abreu, CEO of Itau Seguros S.A., said: "ITAU XL will combine ITAU's Brazilian market expertise and penetration with XL's outstanding underwriting knowledge and access to reinsurance capacity in commercial lines and large insurance risks. We strongly believe that this joint venture will create a winning platform to develop this market in Brazil, with advantages to our clients and brokers."
Mr. Clive Tobin, Chief Executive of XL Insurance, said: "This joint venture underscores XL's strategic approach to opportunities in emerging markets. We are delighted to have joined forces in Brazil with such a respected organization as Banco Itau. We look forward to servicing the local needs of our combined clients, as well as providing them with access to products and services across our global network. This is an important commitment for both our companies and I believe it positions us well to meet the current and future needs of the Brazilian market."
ITAU is the second largest private bank in Brazil in terms of assets and one of the largest in terms of market capitalization among Latin American Banks. It is the third largest provider of commercial lines insurance in Brazil. As of June 30, 2006 ITAU had assets of $ 79.7 billion and shareholders' equity of $ 8.1 billion
"XL Insurance" is the global brand used by member insurers of the XL Capital Ltd group of companies. XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverage and financial products and services to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. As of June 30, 2006, XL Capital Ltd had consolidated assets of approximately $58.5 billion and consolidated shareholders' equity of approximately $8.5 billion. More information about XL Capital Ltd is available at http://www.xlcapital.com/ .
This press release contains forward-looking statements. Statements that are not historical facts, including statements about XL's beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans and expectations. Actual results may differ materially from those included in such forward-looking statements and, therefore, you should not place undue reliance on them. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: (a) slower than expected changes in the insurance regulatory environment in Brazil; (b) trends in rates for property and casualty insurance and reinsurance; (c) changes in general economic conditions, including foreign currency exchange rates, inflation and other factors; (d) developments in the world's financial and capital markets that adversely affect the performance of XL's investments or access to such markets; and (e) the other factors set forth in XL's most recent reports on Form 10-K, Form 10-Q, and other documents on file with the Securities and Exchange Commission, as well as management's response to any of the aforementioned factors. XL undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future developments or otherwise.
