company which will focus on European operations.

The holding company, which as yet has not been named, will take information about and focus on the non-US operations from a London base.

According to XL the new subsidiary is part of an on-going plan to expand XL's insurance business outside of Bermuda and the Americas.

The company will take under its wings several of XL's existing subsidiaries, including XL Europe, Brockbank Underwriting Ltd and Brockbank Insurance Services. XL's spokesman Roger Scotton, told The Royal Gazette : "It makes a lot of sense for companies in London to report to a London holding company. It will give us a European focus on this part of the business.'' The company's board of directors will be chaired by Brian O'Hara, XL's president and chief executive officer. The new entity's executive management board will be chaired by Mark Brockbank, the chief executive officer of the Brockbank Group.

Mr. O'Hara has also become Chairman of The Brockbank Group plc, a wholly-owned subsidiary of XL and operator of one of the largest managing agencies at Lloyd's of London. Mr. O'Hara replaces Sir Brian Corby, who has been Chairman of The Brockbank Group since January 1998.

Mr O'Hara said: "We are extremely fortunate to have had the benefit of Sir Brian's chairmanship and would like to thank him for his invaluable contribution to The Brockbank Group plc.

"We are now preparing for the next stage of our expansion with the formation of a new international insurance holding company operated by senior directors from XL's insurance operating units.'' Sir Brian will continue as a Non-Executive Director of The Brockbank Group and will remain on the Board of XL Capital Ltd.