NU Online News Service, Jan. 16, 2004, 3:56 p.m. EST – Moody’s Investors Service, New York, wants XL Capital Ltd., Hamilton, Bermuda, to take a patient approach to expanding its new funding agreement unit.[@@]
Moody’s has given the unit, XL Life Insurance and Annuity Company, an Aa3 insurance financial strength rating. The rating is 1 notch lower than Moody’s rating for XL Capital.
XL Life Insurance appears to have a good capital position and a conservative investment philosophy, but it will be relatively small compared with other players in the funding agreement market, and it will be ceding about 90% of the funding agreements it writes to XL Capital affiliates, Moody’s says.
The new rating reflects Moody’s expectation that the XL Life Insurance unit “will grow its block of business in a controlled manner” and “maintain strong capital levels,” Moody’s says.