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BUZZ-XL Group Plc: Insurer in talks to buy Catlin

** Irish insurer's shares down 5.7 pct at $33; among top losers on the New York Stock Exchange

** XL in talks to buy Bermuda-based insurer Catlin Group Ltd (LSE: CGL.L - news)

** XL's possible cash-and-stock offer values Catlin at 699 pence per share, a 20 pct premium to stock's Tuesday close

** Catlin's shares rise as much as 17 pct to a record high of 679.50 pence on the London Stock Exchange (Other OTC: LDNXF - news)

** Catlin was top gainer on London's FTSE-250 Midcap Index