XL Capital Ltd and Les Mutuelles du Mans Assurances Group (MMA) yesterday reaffirmed that XL intends to acquire a 67 percent controlling interest in their joint venture reinsurer, Le Mans Re.

XL and MMA said that they intend to increase the share capital of Le Mans Re to assist the company in achieving its objectives in a business environment transformed by the events of September 11.

XL and MMA announced on September 7 that they were discussing terms under which XL would increase its 49 percent shareholding in Le Mans Re, which was formed by XL and MMA in 1999.

The share capital of Le Mans Re is to be increased before December 31, 2001 by FF400 million (US$54.9 million) with pro rata capital subscriptions from both shareholders calculated on the basis of their existing shareholding in the joint venture: 51 percent MMA and 49 percent XL.

Jean-Claude Seys, Chief Executive Officer of MMA, said: "Although the impact of the September 11 attacks has been limited for Le Mans Re, we wanted to provide our subsidiary with financial resources that will put it in a position to respond effectively to the opportunities that are expected to emerge in 2002 as a result of dramatic changes in the worldwide reinsurance scene. We also wanted to provide it with access to increased technical reinsurance underwriting capabilities and we are pleased to have achieved these goals through our close, continuing association with XL."

Henry C.V. Keeling, Chief Executive of Reinsurance Operations for XL and President and Chief Executive Officer of XL Re Ltd, said: "We are delighted to reaffirm our intention to increase our involvement with Le Mans Re and to help provide it with new capital."

The transaction remains subject to the satisfaction of certain conditions, including the receipt of regulatory and other approvals, and the execution of definitive documentation. It is anticipated that this transaction would be completed effective January 1, 2002.