XL Capital Ltd announced today that it has received approval fora new fully licensed European reinsurance company--XL Re EuropeLtd.--based in Dublin, with $1.5 billion of capital andsurplus.

Bermuda-based XL said David Watson, previously XL Re Ltd'sgeneral manager in London, has relocated to Dublin to becomepresident and chief executive officer of the new company.

XL on Aug. 1 announced it would develop the new operation, whichwill serve as the firm's European reinsurance platform.

XL said Standard & Poor's confirmed today that the newcompany will be rated "A-Plus," in line with XL's other reinsuranceentities.

The parent company said XL Re Europe Ltd. has formed two newbranches in the United Kingdom and France to facilitate theassumption of business previously underwritten by the U.K. branchof XL Re Ltd. and XL Re Europe SA.

Non-life business of the U.K. branch of XL Re Ltd. will betransferred into XL Re Europe Ltd. on Jan. 1, 2007 under Part VIIof the Financial Services and Markets Act of 2000, XL said.

The transfer has been approved by the U.K. High Court ofJustice. The business of XL Re Europe SA has been transferred tothe new company under the "Transmission Universelle Du Patrimoine"(TUP) process, the company said.

Mark Berry, previously head of XL Re Ltd.'s Special Risksunderwriting department, is replacing Mr. Watson as general managerin London, and will report to Mr. Watson in Dublin.

Other senior management, including the chief financial officerand chief underwriting officer, will be based in Dublin, along withunderwriting and administrative teams, XL said.

Jamie Veghte, chief executive of XL's Reinsurance GeneralOperations, said the firm is "very pleased to have our entireEuropean operations under one unified management team led by DavidWatson. This will ensure consistency in our approach and a seamlessdelivery of products and services to the market."