Bermuda-based business insurer XL Capital Ltd. has won approval from regulators to establish a property and casualty subsidiary in China.

In line with China Insurance Regulatory Commission's licence approval process and under the leadership of Andrew Vigar, regional manager Asia for XL's Insurance Operations, XL now has a year to prepare to establish its operations in China.

After this period and upon receipt of all regulatory approvals and granting of the licence, XL plans to establish an insurance subsidiary dedicated to serving both local international corporations, as well as its Global Program clients with operations in China.

Mike McGavick, XL's chief executive officer, said: "China's importance to any global company is obvious, and we could not be more proud to have received this critical approval.

"We are committed to work closely with CIRC to ensure we fulfill all regulatory requirements to attain the operating licence in due course."

Dave Duclos, XL's chief executive of insurance operations, said: "The increasing number of local companies with international activities, and the importance of this market to our Global Program clients with activities there make it critical for us to be present in China.

"We look forward to the chance of bringing our global underwriting expertise and service capabilities to bear in this important market in the future."

XL has had a representative office in Beijing since 2005 which is dedicated to deepening the company's understanding of the market.

Also yesterday, XL Insurance announced the strengthening of its equine capabilities with the acquisition of an underwriting and claims team from London-based Unicorn Underwriting Ltd., a subsidiary of THB Group plc.

The team of five is headed by Guy Morrison who has over 20 years of underwriting experience in the international equine insurance market.

In his new role as chief underwriting officer of Equine, Guy Morrison will head XL Insurance's global equine operations with underwriting centres in London, UK and Kentucky, USA.

XL Insurance has also agreed to service the book of bloodstock business formerly underwritten by Unicorn.

Neil Robertson, chief underwriting officer for Global Specialty at XL Insurance commented: "The appointment of Guy Morrison and his team further strengthens our capabilities and commitment to bloodstock insurance. The team has a wealth of global equine underwriting and claims handling expertise, particularly in the London market.

"We are especially pleased to have worked closely with Unicorn in ensuring a continued quality service for its existing brokers and customers."

James Truscott, Managing Director of Unicorn, commented: "It is extremely satisfying when a deal comes together in which all parties win. XL Insurance recognised the value of our market-leading bloodstock team which originally formed the nucleus of Unicorn."