Financial Products and Services Overview
- Provides financial guarantee, insurance products hedged in the capital markets, weather-related business, life and asset accumulation products
- Strategy: create a diversified, non-correlated earnings stream with an ROE target of 16% or more
- Client base includes governments, municipalities and Fortune 1000 companies
- Financial guarantee companies are rated “AAA” by Moody’s, S&P and Fitch
- Financial Products and Services, formed in late 1999, represented 2% of 4Q01 net premiums earned
- Expect significant contribution to XL’s earnings over the next 5 years