In a very busy week, bond insurer XL Capital created a holding company to oversee its financial guaranty insurance and reinsurance businesses, and launched an initial public offering to fund its growth.

XL Capital declined to say how much Security Capital Assurance, the new holding company, would raise from the equity market. However, the company's filing with the Securities and Exchange Commission said the company would benefit from a maximum of $100 million in proceeds from the IPO. Security Capital Assurance is using Goldman Sachs as the lead underwriter. The holding company and its parent, XL Insurance, will also sell a portion of the shares. SCA will funnel the funds to XL Capital Assurance and XL Financial Assurance, its financial guaranty insurance and reinsurance groups, respectively.

Through its XLCA and XLFA units the Hamilton, Bermuda-based company currently extends about $81.8 billion in financial guarantee and reinsurance on public finance and structured finance deals, according to the company's SEC statement.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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