XL Capital announced on Monday that it was set to launch an insurance company in Brazil which will underwrite property casualty and speciality commercial insurance.

The insurer, to be known as ITAXL Seguros Corporativos S.A., is a joint venture with Banco Itau Holding Financeira S.A.

?The new insurance company, 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,? the announcement continued.

ITAU?s chief executive Ruy Moraes de Abreu, said: ?ITAXL 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.?

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 organisation as Banco Itau 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.?