UPDATE 1-XL Capital says to remain in S&P 500; shares jump

May 12 (BestGrowthStock) – XL Capital Ltd (XL.N: ) shares jumped as
much as 11 percent Wednesday, as investors cheered the prospect
of the Bermuda reinsurer remaining in the S&P 500 index (.SPX: )
even as it moves its place of incorporation to Ireland.

S&P on Tuesday changed rules on the eligibility of non
U.S.-domiciled companies for inclusion in its U.S. indexes that
will help companies such as XL Capital to continue in the

According to the rules, for a company to remain in the
index, only half of its fixed assets and revenue need to be
primarily from the United States, Keefe, Bruyette & Woods
analyst Melissa Roberts said.

XL Capital, which is changing its name to XL Group, said in
January it will change the parent company’s place of
incorporation from Cayman Islands.

The Hamilton, Bermuda-based reinsurer was hit hard last
year by structured-finance losses recorded by Syncora Capital,
a bond insurer in which it was the majority owner. Reinsurers
assume risk from policies already sold by insurers, spreading
the risk of losses among several carriers.

XL shares were up about 11 percent at $19.91 Wednesday
morning on the New York Stock Exchange. They hit a high of
$19.91 earlier in the day.

Stock Market Trading

(Reporting by Anurag Kotoky in Bangalore; Editing by Ratul Ray

UPDATE 1-XL Capital says to remain in S&P 500; shares jump