Security Capital Assurance Ltd. was formed as a Bermuda company in March for the sole purpose of becoming the parent company to XL Capital Assurance Inc. and XL Financial Assurance Ltd. The former sells financial guaranty insurance products in three principal markets: the US public finance market, the US structured finance market and the international finance market. Within those markets, it offers public finance, asset-backed securities, structured single risk and structured investment products. And XLFA offers financial guaranty reinsurance to Financial Security Assurance Inc., a financial guaranty insurer that is a preferred shareholder of XLFA, and on a limited basis the company sells third-party reinsurance to highly-rated insurers. Undisclosed.Goldman Sachs

Security Capital Assurance said it plans to use the proceeds for general corporate purposes, as well as to provide capital to its insurance and reinsurance subsidiaries to support growth. Security Capital Assurance will not receive any proceeds from the shares sold by XL Capital. XL Capital now owns 100 percent of the company, and after the offering will own in the region of 65 percent.XL's financial guaranty units posted net income of $89.3 million, $74.8 million and $70.8 million in 2005, 2004 and 2003, respectively. Net written premiums for the same periods totalled $244.9 million; $268.4 million and $252.04 million.SCA on the New York Stock Exchange

Security capital said in its prospectus that the financial guaranty industry is highly competitive, and its top competitors ? Ambac Financial Group Inc., FGIC Corporation, Financial Security Assurance Inc. ( a part shareholder), and MBIA Inc. ? have an advantage because of greater financial resources that will continue to exist despite the offering. There is also growing interest from banks in assuming structured finance risk, escalating the competitive nature of the sector. Other risk factors include the possibility of a negative ratings action in future, the possibility that the ratings firms could increase the capital they require the company hold, relative to the risks contained in the policies sold by Security Capital Assurance companies. Paul S. Giordano, executive vice-president and chief executive of XL's financial products and services segment has been named president and chief executive of Security Capital Assurance, and chief executive of XL Capital Assurance Inc. Three directors of XL Capital will also serve on Security Capital Assurance's board.