chief executive officer of EXEL Ltd. and as chairman of its wholly-owned subsidiary, X.L. Insurance Company Ltd.

He is being replaced by Mr. Brian M. O'Hara, 46, who has been vice chairman of EXEL Ltd. and president and chief executive officer of X.L. Insurance Company Ltd.

The announcement Friday did not come as much of a surprise, as Mr. Kevany has been known to have been in poor health. The company stalwart and veteran insurance man remains, however, in his position as chairman of EXEL Ltd.

The announcement came as EXEL stock moved upward in reaction to an increase in the quarterly dividend, and, an announcement that the board authorised the company to repurchase up to two million of its shares "as circumstances warrant''.

The dividend payable on the company's ordinary shares was pushed up by 10 per cent to $0.33 per share from $0.30, and will be paid October 31 to shareholders of record on October 13.

Mr. Kevany stated, "These actions reflect the strong capital position of the company and our confidence about the future.

"Shares repurchased under this authorisation may be used to fund the exercise of stock options issued to directors and employees over the next several years.'' With regard to the appointment of Mr. O'Hara, Mr. Kevany said, "I am very pleased that I am able to turn the management of EXEL over to Brian O'Hara who has been with the company from its beginning and who has been instrumental for much of its success. Brian is without question viewed as one of the most talented people in the insurance business today.'' Mr. O'Hara said, "We will miss the management of Mike Kevany, who has led EXEL to its prominent position in Bermuda and in the global insurance market today. He has steered the company through a period of tremendous growth and development, including two public stock offerings. We are pleased that he will be staying on as chairman.'' Mr. O'Hara has been vice chairman of EXEL Ltd. since 1987 and a director of the company since 1986. He has also served as president and CEO of X.L.

Insurance Company Ltd. since 1992, having previously been president and chief operating officer since 1986.

In assuming the two positions in November of that year, Mr. O'Hara became the company's first employee. Before that he was senior vice president and chief underwriting officer of reinsurer, Trenwick Group Inc., (1979-86) where he was responsible for the design and implementation of the group's underwriting policies.

As a founding principle of Trenwick, he opened the offices here in 1979 and over the past 15 years he has been focussed on the offshore/alternative insurance industry.

Mr. O'Hara, a CPCU since 1975, is a director of Mid Ocean Ltd., the Captive Fixed Income and is a trustee of the Angus Robinson Jr. Memorial Fund.

A graduate of the University of Santa Clara with a Bachelor of Science in Economics, he served as the first president of the Bermuda Independent Underwriters Association and has been active on several committees of the Bermuda Government, including the Insurance Advisory Committee and Insurance Admissions Committee and has chaired the Council of Advisory Committees.

EXEL Ltd., through its wholly-owned subsidiaries, X.L. Insurance Company Ltd.

and X.L. Europe Insurance, provides general liability, directors and officers liability, professional liability and property insurance coverage to industrial, commercial and other enterprises, directors and officers of such enterprises and professional service firms on a worldwide basis.