MUNICH (Bloomberg) - XL Capital CEO Brian O'Hara expects the subprime crisis to weigh on the profits of so-called D&O insurers, which provide cover for corporate executives.

"There is no doubt there will be bankruptcies and some impairments" following the US subprime fallout, Mr. O'Hara said in an interview in Munich. That will generate losses in D&O insurance, he added.

Concern the credit crisis, sparked by losses on US subprime loans, would derail global economic growth triggered an equities sell-off in July.

Several mortgage companies were forced to file for bankruptcy, while some investment managers, including New York-based Bear Stearns, were forced to shut down funds or suspend client redemptions.

"We have seen the high points" of the D&O insurance market, Mr. O'Hara said. Insurers including XL, American International Group and Chubb Corp. together had their highest rate of return in at least 16 years in 2006 from selling coverage for directors and officers, according to estimates by Sanford C. Bernstein & Co.

Bermuda-based XL will "have its share" of D&O insurance claims following the credit crisis, Mr. O'Hara said.

The claims will be within expectations "for any given year," he added.