Bermuda-based EXEL Ltd. announced yesterday Mr. Michael Esposito, Jr. has been elected chairman of the board.

He replaces Mr. Michael Kevany, 69, who has retired as chairman but remains a director.

Mr. Esposito, 55, has been a director of EXEL Ltd., and its subsidiaries X.L.

Insurance Company Ltd., and X.L. Investments Ltd., since their formation in 1986.

He currently serves on the Compensation Committee and is chairman of the Nominating and Corporate Governance Committee of EXEL.

"I am very pleased that Mike Esposito has agreed to become non-executive Chairman of the Board,'' said Mr. Brian O'Hara, president and Chief Executive Officer of EXEL.

"He has served as a director of the company from its earliest days and represents not only continuity but also a wealth of other experience. I look forward to his increased involvement with EXEL and value his counsel,'' added Mr. O'Hara.

Mr. Esposito is executive vice-president and chief corporate control, compliance, and administrative officer of the Chase Manhattan Corporation and its principal subsidiary, the Chase Manhattan Bank, N.A.

He joined Chase Manhattan Bank in 1961 and was promoted to executive vice-president in 1970 and controller in 1974. In 1983, while controller, he was promoted to executive vice-president and was named Chief Financial Officer in 1987. He assumed his current position in 1992.

Mr. Esposito announced in February that he intends to retire from Chase Manhattan effective June 30. His EXEL appointment was effective yesterday.

Mr. Esposito is on the board of directors of the New York City chapter of the Financial Executives Institute and is chairman of the Private Sector Council, Washington, D.C.

He also serves as member of the Financial Accounting Standards Board advisory Council and is a member of the Bank Administration Institute's strategic issues task force as well as a member of the Chief Financial Officers division for the Financial Services Industry of the Conference Board.

He is also past chairman of the Board of the Bank Administration Institute and past chairman of its Finance and Accounting Commission. He also served as chairman of the American Bankers Association Chief Financial Officers division and chairman of the New York Clearing House's Financial Officer Group.

Mr. Esposito is a graduate of Notre Dame University and holds an MBA degree, cum laude, from New York University. He also graduated from the Columbia University executive programme for business.

Mr. Esposito and his wife, Ellen, live in Oradell, New Jersey, and they have three children.

EXEL, through its wholly-owned subsidiaries, provides general liability, directors and officers, professional liability and excess property coverage to industrial, commercial and other enterprises, directors and officers of such enterprises and professional service firms.