investment'' in Bermuda-based Agora Capital Management Ltd, an investment group servicing institutional investors. Terms of the deal were not disclosed.

"XL Capital recognises the strategic importance of establishing and building relationships with experienced and talented investment professionals across different sectors of the capital markets with a continuing focus on enhancing risk-adjusted returns,'' said XL Capita president and CEO Brian O'Hara.

Agora maintains additional offices in Geneva and will soon set up operations in London. The "alternative investment group'' provides high-end services to its investors by blending multiple investment strategies with a strong focus on risk management.

It was formed in 1998 by former executives of the Goldman Sachs Commodities Corporation and currently works with 30 different alternative investment managers.