$30 million after underwriting a Hollywood movie policy. An article in the Wall Street Journal revealed that XL was burned to the tune of some $33.4 million after signing a deal with Chase Manhattan Bank to underwrite loans the Bank had made for Hollywood movie productions.

The deals XL signed were the brainchild of Hollywood lawyer come film financier Peter Hoffman. The funds were used to make Hollywood's "The Mirror Has Two Faces'' with Barbara Striesand and "The People vs. Larry Flynt'' with Woody Harelson.

But both films did badly at the box-office and studios claimed losses.

Because many of the insurance-backed deals included clauses that forced participants to wait three years before they could file claims -- to allow time for the movies to exhaust most of their earning potential -- the fights between insurers and Chase entered the courts only recently.

To date only XL along with a handful of others have covered their commitment to Chase and a further $41.4 million is still unpaid by the remaining eight insurers.

The $41.4 million is almost the entire amount Chase lent to Hoffman's company-- Phoenix, to cover production of the first two movies of a five movie deal.

The Bank is embroiled in ten suits with those insurers, who contend that they were induced to enter the contracts as a result of fraudulent misrepresentation and nondisclosure.

A spokeswoman for Chase has said: "There is no factual or legal merit to the position taken by the insurance companies in this lawsuit.

"Chase expects that its position will prevail.'' Meanwhile the man who spearheaded the deals -- Peter Hoffman, quit Phoenix back in 1996 holding he was forced to do so because one of the investors felt he was tainted.

The move freed him to arrange more insurance-backed film loans as a free agent while focusing on his own film production company.

The change saw him secure Paramount Pictures as his first client, who still regard him as a good deal-maker.

"In fact, a spokesperson for Paramount said he had brought the studio "a number of financial transactions that have made good economic sense.

"He has always proven to be a responsible and reliable partner.'' But his reputation with insurance companies and Chase has become notorious and consequently he has shifted his business away from consulting and more toward producing movies.