XL Affirmed

The “A+” FSR on XL Capital Ltd. was affirmed by A.M. Best. The rating action also applies to the following members of the XL group of companies: XL Europe; XL Ins. Ltd. (Bermuda); XL Re Ltd.; XL Reinsurance America Group; XL Reinsurance America Inc.; XL Ins. of NY; XL Specialty Ins. Co.; Greenwich Ins. Co.; Indian Harbor Ins. Co.; NAC Reinsurance Corp. (Canada); and NAC Reinsurance International Ltd. Concurrently, an “a” rating was assigned to existing senior debt of NAC Re Corp. Cited as rating factors were the group’s global market capabilities, strong capitalization, sustained earnings and the demonstrated success of management strategies.

These strengths are offset by ongoing market challenges related to the group’s large account and reinsurance segments; integration and financial risks associated with recent, large acquisitions; and the significant amount of goodwill carried by XL Capital Ltd. in relation to its acquisition of XL Re Ltd.