With the opening of a new office in London built to house more than 500 staff, XL Capital's UK headquarters will outstrip the size of its global headquarters in Bermuda.

In a Press release last week the Bermuda-based re/insurance and financial services company said it now had officially been given the keys to offices at 70 Gracechurch Street - the site of its new headquarters in London.

XL said the seven-storey building - which will provide its London-based operations with 125,000 square feet of office space and room for more than 500 employees - will be ready to move into by next summer.

XL CEO Brian O'Hara said the move was in recognition of the importance of the London marketplace: "XL's consolidation in a new UK headquarters office in the heart of the City provides significant operating synergies.

"The move confirms our long term commitment to London as one of the premier insurance and reinsurance centres and as a major platform for our global business." The announcement on the London headquarters comes two years after XL Capital officially opened its global headquarters in Bermuda.

XL House on Bermudiana Road houses the company's Bermuda operations and some 300 employees.

On hand to hand over the keys to the new London office was Sir Alex Ferguson, manager of Manchester United Football Club.

Sir Alex is a founding shareholder of Active Asset Investment Management (aAIM), the property advisory and fund management company which manages the Synergy Gracechurch Limited - the company which holds the 25-year lease for the Gracechurch Street propterty.

Meanwhile, XL said the new London office would allow the company to consolidate eight of its businesses - XL Re Ltd (London Branch Office), XL London Market Ltd, XL Insurance Company, Ltd, XL Capital Assurance (U.K.) Limited, XL Services (U.K.) Limited and XL Financial Solutions - under one roof.