XL Capital implements dividend reinvestment and share repurchase plan

HAMILTON, BERMUDA - January 18, 2002

Hamilton, Bermuda (January 18, 2002) - XL Capital Ltd (NYSE: XL) ("XL") announced the effectiveness today of its Registration Statement filed with the Securities and Exchange Commission in connection with the implementation of a Dividend Reinvestment and Share Purchase Plan.The Plan, which is effective today, is intended to provide registered holders of XL Capital Group Class A Ordinary Shares a convenient and economical way to reinvest all or a portion of their cash dividends and to make additional cash investments, subject to minimum and maximum purchase limitations, in its Class A Ordinary Shares. Holders who invest through the Plan pay no brokerage commissions or fees or expenses in connection with purchases of Class A Ordi-nary Shares under the Plan. A prospectus is being mailed by the Plan Administrator to regis-tered holders of XL Capital Group Class A Ordinary Shares, along with the forms and instructions necessary to enroll in the Plan.XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and rein-surance coverages and financial products to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As at September 30, 2001, XL had consolidated assets of approximately $25.7 billion and consolidated sharehold-ers' equity of approximately $4.8 billion. More information about XL, the coverages written by its operating subsidiaries, and contact details, are available at www.xlgroup.com.This press release may contain forward-looking statements which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about XL's be-liefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements and therefore you should not place undue reli-ance on them. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements is set forth in XL's most re-cent report on Form 10-K and XL's other documents on file with the Securities and Exchange Commission. XL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.