Bermuda insurer XL Capital Ltd., with operations in Hartford, will remain in the S&P 500 index even as it moves its place of incorporation to Ireland, Reuters reports.
S&P this week 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 index.
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 to Ireland.
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 4 cents to $19.56 in early trading Thursday.
