units of its operations this summer, company president and CEO Brian O'Hara had said the move would allow the company to better concentrate its efforts.

True to his word, XL Speciality Insurance Company (a subsidiary of XL Capital Ltd.) has signed an agreement to purchase the US surety operations of CGU Insurance.

The business expected to be acquired includes the in-force business of CGU Surety as well as underwriting operations located throughout the US.

XL Speciality Insurance Company is a leading writer of US Customs bonds, as well as bonds for small to medium sized contractors. CGU Surety is an underwriter of middle-market and large contract and commercial surety risks.

The company is also in the top 30 of surety underwriters in the US.

Daryl LaForge, president of XL Surety said the merger is a good "strategic fit''.

"We expect that the existing organisational structures, coupled with a historical focus on different segments of the surety market, will allow us to quickly integrate these two operations while expanding our service capabilities,'' he said.

Brian O'Hara