US-based Tri-City Brokerage, Inc.

Tri-City is a provider of specialised wholesale insurance products and services. The investment, which is expected to close in about three months, will give EXEL a further stake in the US insurance and reinsurance market.

Earlier this year EXEL set up X.L. America after purchasing shell company Folksamerica General Insurance Co. (the former Great Lakes American Reinsurance Co.) which holds licences in a number of US states.

EXEL said the investment would help Lloyd's of London managing agency Brockbank Plc expand its US marketing strategy. Brockbank is owned by Mid Ocean Ltd. EXEL Ltd. is in the process of completing the acquisition of Bermuda-based Mid Ocean once shareholders vote next month on the deal.

"This strategic investment provides Brockbank with access to Tri City's unique wholesale network,'' EXEL president and chief executive officer Brian O'Hara stated in a press release. "It provides an ideal platform for the broader marketing of their products into the US market and will further enable Brockbank to reach a wider segment of retail brokers at a more localised level.'' Brockbank chief executive Mark Brockbank said the investment would help further the agency's already existing relationship with Tri-City.

"I believe the investment is evidence of EXEL's understanding of our need to advance our market presence in North America,'' he said.

EXEL's planned stake in Tri-City San Franscisco-headquartered Tri-City has six branch offices in the US.

The company services about 1,000 independent insurance agents and brokers distributing products for 250 carriers.

The company handles global marine and energy insurance, professional liability coverage for lawyers, political risk insurance, product warranty, directors and officers liability, and employee benefit management systems.

Tri-City president John Hahn said the investment would help the company "enhance'' its relationship with Brockbank.

"The strategic alliance with EXEL and the Brockbank Group is a win-win situation for Tri-City,'' Mr. Hahn said.

"It will allow us to focus more on our strengths and find new ways to provide top quality expertise in the marketplace.'' Brian O'Hara