XL Capital Ltd. has named a new chief executive officer for its troubled US reinsurance unit.

XL announced earlier this month that it would take a $694 million charge against its earnings to cover unexpected claims from XL Re America.

Now it has named James Veghte, currently president, chief operating officer and chief underwriting officer of XL Re Ltd. and president of XL Re Latin America to the new position of Chief Executive Officer of XL Re America.

Mr. Veghte, who has been with XL for about ten years, serving as general manager of XL Re Ltd.?s London branch and general manager of XL Re Europe (formerly known as Le Mans Re), will be based in Stamford, Connecticut.

XL announced the charge and plans to raise an additional $750 million in capital after reviewing contracts sold between 1997 and 2001 by NAC Re Corp., an American reinsurance company XL bought for $1 billion in 1999.

Problems for XL began in the third quarter of last year, when tort and malpractice claims started to affect XL Re. In October, XL took a $160 million after-tax charge against third-quarter earnings to pay for potential claims in its North American business for medical malpractice and professional liability.

Three US law firms last week announced that they were initiating class action lawsuits against XL as a result of the charge.

The firms allege that the company, CEO Brian O?Hara, Jerry De St. Paer, and Ronald L. Bornhuetter violated the Securities Exchange Act of 1934 by failing to maintain, establish or increase adequate loss reserves for claims by NAC Re policyholders and as a result overstated the company?s earnings and assets.

In other management changes, Greg Hendrick, currently chief property underwriter for XL Re Ltd.?s Bermuda operations, succeeds Mr. Veghte as president and chief underwriting officer of XL Re Ltd. and has been appointed to the reinsurance executive group, the executive management board of XL Re.

Stephen Outerbridge has been appointed president of XL Re Latin America. In addition, he will serve as chief operating officer for XLReLA while continuing in his current role as chief underwriting officer.

David Watson, general manager of XL Re Ltd.?s London branch, has been appointed to the reinsurance executive group. He has been with XL Re for ten years.

All four reinsurance executives will report directly to Henry Keeling, chief executive of reinsurance operations.

Mr. Keeling said: ?I am pleased to welcome Jamie, Greg, Stephen and David to their new roles. After studying ways in which we could manage the future impact of cycle change in our industry, we concluded that it would be necessary to make management changes within the reinsurance segment.

?I am confident that we have the management team that will help us will meet business challenges while making sure that our reinsurance operations remain aligned with the changing culture of the XL group of companies.?

?XL Capital?s chief executive of insurance operations Nicholas Brown is to retire.

Mr. Brown will be succeeded by Clive Tobin, currently chief executive officer of XL Insurance Global Risk, on April 1.

XL Capital chairman Brian O?Hara said in a statement: ?Nick Brown has overseen significant profitable growth and development in our insurance operations since he assumed the segment CEO role in July 2000 and we wish him well.

?During his tenure, our insurance operations have performed at a high level. Nick?s contribution has been valued during this time and we appreciate his willingness to work with us on the management transition that will now be necessary.?

Mr. Tobin, who oversees XL?s global property and casualty large commercial account business in his current post, ?combines clear, strategic thinking and technical expertise with financial acumen and enjoys an excellent rapport with shareholders and customers? in his current post, Mr. O?Hara said.

?We are fortunate to have an executive of Clive?s calibre to fulfil the important role of leadership in our insurance segment.?