DUBLIN, Ireland, April 1, 2015 /PRNewswire/ -- XL Group plc (NYSE: XL) ("XL" or the "Company") today announced the creation of XL Innovate, an XL sponsored venture capital initiative. The new fund will be led by Tom Hutton, known for his leadership in the creation of successful insurance and financial technology ventures.
XL Innovate will be financially backed by XL and will invest in companies that have a strategic focus on developing new capabilities in the insurance sector. The fund will take equity positions in companies that provide new market opportunities for XL throughout the world. XL Innovate will strive to create partnerships outside of the traditional underwriting space to find ways to underwrite currently uninsured risks.
XL CEO Mike McGavick commented: "We are very excited to launch this new initiative, which will extend XL's capabilities in existing markets and give us new opportunities to address some of the most pressing and complex risk problems in the global economy. XL Innovate is an important step as we continue to drive our focus on innovation forward and secure the relevance of XL and the industry well into the future. We are particularly pleased to have Tom Hutton, and his strong track record of insurance innovation, partnering with the XL team."
Tom Hutton, a past Director of XL, brings extensive insurance specific knowledge to XL Innovate, both as an executive with experience in risk analytics, as CEO of Risk Management Solutions, Inc., White Mountains Re, and as a Director of private and public insurance and reinsurance companies including Montpelier Re and Safeco. Most recently, Mr. Hutton served as the CEO and founder of New Energy Risk Inc., a provider of innovative data analytics, strategic consulting and financial risk transfer solutions to the renewable energy industry worldwide, which partnered with XL last year to launch an innovative fuel cell insurance product.
Tom Hutton added: "I am thrilled to be partnering with the XL team at a time of both industry transition and great momentum at the company. Mike McGavick has led the creation of a forward looking and creative culture at XL that makes it an ideal sponsor for this initiative, which will be further enhanced by XL's proposed offer to acquire Catlin Group Limited, and to form an even stronger company. We look forward to being a unique partner to entrepreneurs with the vision and ambition to address new risks with new solutions, unconstrained by geography, scale, or traditional thinking."
In addition to Mr. Hutton, the fund will be led by an investment team with successful experience in identifying, funding, and growing innovative ventures in financial technology and insurance. XL Innovate will be overseen by a board of directors including Sarah Street, currently XL's Chief Investment Officer.
As was recently announced, Ms. Street will be stepping into a new role at XL focusing on innovation efforts and strategy initiatives following the close of XL's proposed acquisition of Catlin Group Limited ("Catlin"). She will play an active role as a member of the XL Innovate investment team. Greg Hendrick, currently Chief Executive of Insurance Operations at XL, who after the close of the proposed Catlin transaction will become Chief Executive of XL's Reinsurance Operations, will be the XL Leadership Team member with responsibility for XL's involvement in the XL Innovate activities – helping connect XL Innovate's portfolio companies to the Company's clients, brokers and insurance and reinsurance underwriting. XL's proposed acquisition of Catlin of remains subject to approval of Catlin shareholders and sanction by the Supreme Court of Bermuda, customary regulatory approvals and anti-trust clearances, and other customary closing conditions.
About XL Innovate
XL Innovate is an XL sponsored venture capital initiative focused on making investments in companies with businesses that address the world's most complex risk and ensuring the relevancy of the insurance industry today and into the future. XL Innovate will seek to invest in companies that strive to create partnerships outside of the traditional underwriting space to find ways to underwrite currently uninsured risks. To learn more, visit www.xlgroup.com/xlinnovate
About XL Group plc
XL Group plc (NYSE:XL), through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward. To learn more, visit www.xlgroup.com
About New Energy Risk
New Energy Risk applies innovative data analytics and modeling expertise to address the complex risk and financing issues facing manufacturers, developers, and lenders of renewable energy products and projects. New Energy Risk has developed specialized product and project warranty and performance risk solutions that play a significant role in reducing the total cost of financing renewable energy projects. To learn more, visit www.NewEnergyRisk.com
SOURCE XL Group plc