Robert Lusardi, chief executive officer of XL's Financial Products and Services operations, said, ``We believe that credit risk protection will be one of the fastest growing risk transfer markets over the next five years."

While he said that XL, through its financial guaranty operations, already provides credit protection, he noted that the protection that XL has been providing is only for pools of corporate obligations and only on an excess basis.

"We had been actively studying the single name, ground-up credit default insurance market when we were introduced to Primus."

XL will receive two seats on Primus' board. XL Chairman Michael Esposito, Jr. will serve as Primus chairman and Robert Lusardi will serve as a director and chairman of the Finance and Investment Committee.

Primus' executive management includes: Thomas Jasper, chief executive officer, former managing director and global treasurer of Salomon Smith Barney Holdings, Inc. and co-founder and former chairman of the International Swaps and Derivatives Association; and Joseph Bauman, chief financial officer, former head of International Financial Management and Derivatives Sales and Structuring at Bank of America and former ISDA chairman.