XL Capital Ltd has gone on a spending spree by buying heavily into a French reinsurer and investing in an American investment management company.

The Bermuda insurance giant announced the moves yesterday and said it hoped they would bring in more money to the company.

The firm has officially become the major shareholder in Le Mans R? after shareholders in both companies approved the move that will make the Bermuda insurer a 67 percent stakeholder in the French business.

And it has acquired a minority interest in Stanfield Capital Partners LLC, an investment management company based in New York. The US company, which was founded in 1998, specialises in collateralised debt obligations and other credit-based products.

XL has also acquired a direct minority interest in Stanfield Global Strategies (formerly Ceres Capital), an investment management firm majority-owned by Stanfield that manages a $3 billion investment grade securities conduit.

The investment in Le Mans will open up access for the company to European markets at a time XL considers “crucial” and, in turn, Le Mans will become a more important part of the global strategy.

A joint statement released yesterday by XL Capital Ltd. and MMA (Mutuelles du Mans Assurances) said: “XL has completed its previously announced acquisition of a 67 percent majority shareholding in Le Mans R?, the joint reinsurer formed by XL and MMA in 1999.

“MMA, which previously held 51 percent of Le Mans R? will retain a 33 percent stake in Le Mans R?.”

XL, which as of September 30, 2001, had consolidated assets of approximately $25.7 billion and consolidated shareholders' equity of approximately $4.8 billion, said it hoped the US acquisitions would make more money for investors in XL, create shareholder value and take the business to the next level.

XL president and chief executive officer Brian M. O'Hara said: “XL is committed to forming strategic relationships with leading investment management organisations who, we believe, will generate superior investment performance for their investors and long-term equity value for their shareholders.”

He added that Stanfield had built an impressive organisation over the past few years, and XL was excited to be working with them as they “move their business to the next level”.

XL's executive vice president and chief executive officer of financial services and products Rob Lusardi added: “We have known and worked with Stanfield for some time now. Their strategy to grow and diversify their investment management franchise across the spectrum of credit-based products is very complementary to a number of strategic initiatives within XL.”

Le Mans, which has approximately 130 staff in Le Mans and has offices in Paris, Cologne, Madrid, Toronto, Singapore, Miami, Sydney and Labuan, operates in the property (facultative and realty), life, and accident, motor and casualty risk areas and on December 31, 2000, had gross written premiums of 287 million.

XL chief executive of reinsurance operations and XL RE Ltd. president and chief executive officer Henry C.V. Keeling said: “I am very pleased that we have been able to complete our acquisition of a controlling interest in Le Mans in time for the start of 2002.

“With its good client connections and mature book of business, Le Mans R? enhances our access to the Continental European marketplace at a crucial time. We are fortunate that MMA continues to work with us in this joint venture and we look forward to making Le Mans R? an increasingly important element of our global strategy.”