EXEL Ltd. expects great things from new subsidiary XL America, which is already backed by a compelling promotion at the RIMS Conference in San Diego.

The company has a three-minute video running as part of their exhibit that may just push all the right buttons in corporate America.

Together with a stand-alone brochure, XL America is introduced almost as the next Messiah for those in the wilderness of risk transfer. EXEL president and CEO Brian O'Hara concedes "it's definitely a work in progress. XL America gives us a platform to get closer to our customers and figure out their needs much better up close. We can then start to design innovative multi-line programmes that also bring in greater business risk aspects.

"It's hard to define because, again, it is a work in progress. But we think that by being onshore we'll be able to do the research and development much more effectively.

"Also it gives us a broader reach into the upper middle market that doesn't normally come to Bermuda for coverage. So the plans are modest in terms of what business will generate in the early days. But we hope to create some real innovative product solutions in the longer run.'' XL America is the renamed US firm Great Lakes Re that EXEL purchased from Folksamerica Inc. Great Lakes Re was operating as a reinurance company but it had 25 state insurance licenses, particularly in the difficult states to get like California, New York, Illinois, Texas and others.

XL America believes it can obtain the remaining 25 licenses in the next year or two. In the US, where insurance is state regulated it is often difficult, and always time consuming, to get admitted to do business in all 50 states.

You have to satisfy 50 separate administrations of state insurance regulators.

Mr. O'Hara said: "At least we are ready to do business in states like here in California and we're happy to be in San Diego.

"Our business projections right now are modest. We are putting together a business plan. It's more of a qualitative plan right now, rather than quantitative. We don't have high aspirations for putting numbers on the books in the near term.

"It is also a platform to look at acquisitions, to build growth through acquisitions in the US so that we have a better platform to manage US acquisitions than from Bermuda, because of the distance, regulatory and tax issues.'' XL America has five representatives in San Diego, XL Europe has three people visiting and 11 people from the Bermuda office flew in to observe the interaction between XL America officials and insurance buyers.

XL America is appealing to buyers who've been concerned about the lack of insurance partners who've been able to effectively provide solutions to bridge insurance and financial risk. The company is marketing to buyers who want unique solutions, sometimes for specific and complex problems.

"When we sit down with you,'' distributed literature promises, "we don't want to hear about your insurance liabilities...Everything that might threaten your business plan and bottom line. Then we'll figure out how to aleviate your business plan risk so you can get back to serving your customers.'' BRIAN O'HARA -- EXEL chief says XL America "is definitely a work in progress''.

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