Michael Esposito to focus on ailing affiliate, SCA
Michael Esposito has resigned as chairman of Bermuda-based Reinsurer, XL Capital.
The decision comes prematurely, after Esposito announced earlier this year that he would not step down from XL's board until next year.
Esposito, however, will continue in his role as chairman of Security Capital Assurance (SCA), XL's 46%-owned affiliate.
Esposito said that SCA's current need for his full attention forced him to change his original retirement schedule.
He said: "While I am saddened by my decision to retire from XL earlier than I had planned, I can reflect proudly on the past 21 years as a founding XL director ... and look forward to assisting SCA in addressing its current challenges."
Earlier this month AM Best revised XL Capital's outlook on its financial strength and issuer credit ratings to negative from stable, stating concerns "regarding the financial pressures being experienced by SCA and the potential financial and operational impacts to XL Capital due to its [partial] ownership of SCA.
"Additionally, XL Capital provides SCA with reinsurance support and guarantees certain SCA obligations, which further expose XL Capital to SCA's financial situation."
Following the announcement XL shares fell by $1.52 to $50.02. SCA shares, meanwhile, rose 10 cents to $3.96.
