Bermuda-based XL Capital is boosting its prospects for casualty insurance policy sales in the US after reaching an agreement to take over ?substantial? business from an insurer that sells the coverage across America, the company said yesterday.

Under the agreement, XL America, the holding company for XL?s US operations, can immediately send renewal quotes to a ?substantial? number of Argonaut Insurance Company?s nationwide clients.

Argonaut Insurance is the California-based unit of Argonaut Group Inc., a San Antonio, Texas-based speciality insurer. AIC primarily sells workers? compensation policies, according to Argonaut?s 2004 annual report.

Argonaut said it reached the agreement with XL after deciding to focus on other areas showing greater growth or profitability.

Neither XL or Argonaut disclosed what price was reached in the agreement, nor the value of the policies that XL can expect to sell under the deal.

Argonaut?s risk management segment, which falls under Argonaut Insurance, sold $181.7 million in policies in 2004, compared to $197.4 million in policies sold in 2003.

Pricing and terms for property and casualty insurance premiums have generally been softening, or declining, since last year.

XL America executive vice president Dennis Kane said the agreement with Argonaut ?fits well with XL America?s growth strategy in the US casualty market?.

Some of Argonaut?s ?key? staff will join XL America as part of the deal.

Casualty insurance policies are bought by commercial clients to protect against losses arising from legal liabilities related to personal injury or property damage.

Argonaut retains the right to offer specialised claims management and loss control services to those clients included in the agreement, according to an Argonaut statement.

Argonaut, which sells policies to US clients, has total assets of around $3.1 billion while XL Capital, a global insurance and reinsurance company, has assets of about $53.3 billion.