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HAMILTON, BERMUDA January 18, 2002 -- XL Capital Ltd ("XL" or "the Company") (NYSE: XL) announced today that its Board of Directors declared a quarterly dividend of $0.47 per share payable on the Company's Ordinary Shares. The dividend will be payable on February 19, 2002 to shareholders of record on February 4, 2002. This dividend payment represents an increase of $0.01 per share from the previous quarterly dividend.XL Capital Ltd, through its subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis.