XL's chief operating officer Henry Keeling will retire from the company on Friday.

The announcement was made in yesterday's quarterly earnings report in which chief executive officer Michael McGavick outlined the new management structure of the company.

Three senior executives will leave their current positions within the next month. As a result of Mr. Keeling's decision to retire the position of COOwill no longer exist.

Mr. McGavick said: "Regrettably Henry has decided to retire. Henry has driven our successful dual platform strategy in our P&C businesses as well as leading our life reinsurance business.

"He has made a significant contribution in many parts of the organisation since he joined the XL Group in 1993. The board of directors and all of Henry's XL colleagues appreciate his leadership and commitment throughout his tenure at XL, but in particular through these recent challenging times."

Previously Mr. Keeling expressed his disappointment with not being chosen to replace Brian O'Hara as CEO earlier this year.

While at the World Insurance Forum in Dubai in March he told The Royal Gazette: "I very much wanted to be CEO. I'd have been honoured and privileged to become CEO. So yes, I am disappointed, but I'm keeping an open mind.

"I haven't made any decision yet. We'll see how it works out."

Mr. McGavick also announced that Michael (Spike) Lodbell will leave is current position of executive vice-president and chief executive of global business services, effective August 31, 2008.

Mr. McGavick said: "The decision Spike and I came to, to realign the majority of Global Business Services within the business operations means that the current executive structure will no longer be required.

"Spike has led this area through significant change over the past two years and I want to thank him for his leadership and selflessness."

In addition, Fiona Luck, executive vice-president and chief of staff, will become special adviser to the CEO, based in Bermuda and London and with a reduced time commitment. She will step down from her current role and the senior leadership group on Friday, at which time the role of chief of staff will be eliminated. Mr. McGavick said: "I look forward to having continued access to Fiona's knowledge and expertise as I work with my new senior leadership group."

Mr. McGavick concluded: "Each of these management changes are occurring for different reasons, but XL has great bench strength which I am determined to retain. To do so and to motivate success, we will make a limited number of targeted option awards.

"Options awarded to the most senior executives will have a performance vesting feature. I have complete confidence that our new streamlined leadership will deliver on our refined strategy."