XL Capital Ltd Acquires ECS, Inc. and Expands North American Platform
XL Capital Ltd (NYSE: XL) ("XL Capital" or "XL") announced today that it has acquired ECS, Inc. ("ECS"), an underwriting manager recognized for its expertise in integrated environmental insurance coverages. The terms of the transaction were not disclosed.
ECS, Inc., headquartered in Exton, Pennsylvania, is a leading provider of integrated environmental risk management services to business and industry worldwide incorporating innovative environmental insurance (ECS Underwriting, Inc.), specialized risk control services (ECS Risk Control, Inc.) and expert claims management (ECS Claims Administrators, Inc.).
As an underwriting manager, ECS placed approximately $200 million of gross written premium in 1998. Historically, ECS's book of business has been profitable, characterized by a significant, claims-made component which fits well with XL Capital's other casualty business. ECS will begin writing business for U.S. subsidiaries of XL Capital at year-end 1999. ECS, which was formed in 1979, employs approximately 500 people and maintains offices in Atlanta, Houston, Chicago, Los Angeles, San Francisco and London.
Robert J. Cooney, Executive Vice President of XL Capital and President and Chief Executive Officer of XL Insurance Ltd, said: "ECS, with its leadership position in the business of integrated environmental risk management, represents an ideal platform for XL to continue the expansion of its North American business operations. We are pleased to have found such a highly-regarded, innovative and quality-focused company that meets our return criteria and fits our strategic expansion plans."
As a wholly owned subsidiary, ECS will expand XL Capital's North American platform, providing a full array of property and casualty products and services. ECS offers integrated underwriting, risk control and claims administration services to meet the diverse risk management needs of its customers. Building upon its expertise in environmental insurance, ECS will also serve as XL's Global Environmental Practice Leader.
William Kronenberg, III, will serve as President and Chief Executive Officer of ECS in addition to becoming a director of X.L. America, Inc. ("XL America"), an XL Capital subsidiary, which will be the parent company of ECS. According to Mr. Kronenberg, "Becoming part of XL Capital immediately enhances our competitive position by providing us with superior financial strength, a critical factor demanded by our brokers and their clients. In addition, the comprehensive resources of XL Capital will help expand and complement the ECS product line and, thereby, support our continued rapid expansion throughout North America and the world."
Nicholas M. Brown Jr., Chief Executive Officer designate of XL America and President and Chief Executive Officer of NAC Re Corp., which is in the process of being acquired by XL Capital, said: "The addition of ECS to the XL Capital group will be highly complementary to XL's merger with NAC Re Corp., expected to close later in June, and its recent acquisition of Intercargo Corporation. With these transactions, XL's U.S. presence is greatly enhanced and we will have a strong platform for profitable growth and further expansion."
XL Capital, through its wholly owned subsidiaries, including XL Insurance Ltd, XL Mid Ocean Reinsurance Ltd, XL Capital Products Ltd and The Brockbank Group plc, provides insurance and reinsurance coverages and financial products worldwide. As of February 28, 1999, XL Capital Ltd had consolidated assets of $10.5 billion and consolidated shareholders' equity of $4.8 billion. (Additional information on both XL Capital and ECS is available from their respective web sites: www.xl-capital.com and www.ecsinc.com).