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Full Year 2005 Net Loss of $1,292.3 Million, or Net Loss of $9.14 per Ordinary Share

          Strong Underlying Fundamentals Overshadowed by 2005 Events                    (Full Year 2005 Versus Full Year 2004)    -- 2005 Contribution From Financial Operations Was $235 Million Compared       With $141 Million    -- General Operations Net Investment Income Was $799 Million Compared With       $614 Million    -- Combined Ratio, Excluding the Charge Associated With the Winterthur       Decision and the Third and Fourth Quarter Natural Catastrophes,       Was 92.1%

HAMILTON, Bermuda, Feb. 7 /PRNewswire-FirstCall/ -- XL Capital Ltd (NYSE:XL) ("XL" or the "Company") today reported a net loss to ordinary shareholdersfor the quarter ended December 31, 2005 of $821.9 million, or a net loss of$5.51 per ordinary share, compared with net income of$288.0 million, or net income of $2.07 per ordinary share, for the quarterended December 31, 2004. Net loss for the quarter ended December 31, 2005included net losses of $834.2 million, pre and post tax, associated with theWinterthur International independent actuarial decision ("WinterthurDecision"). The quarter ended December 31, 2005 also included pre-tax netlosses from Hurricane Wilma of $247.1 million and additional pre-tax netlosses of $210.8 million related to the 2005 third quarter naturalcatastrophes. These additional net losses arose from newly reported claims andincreased severity on existing claims. Taking into account net reinstatementpremiums and tax effects, the net income impact of Hurricane Wilma and thethird quarter catastrophes in the fourth quarter 2005 was $225.6 million and$165.1 million respectively, for a total of $390.7 million. Net income for thequarter ended December 31, 2004 included net losses of $138.0 million, net oftax, from catastrophes. The Company's loss estimates involve the exercise ofconsiderable judgment and are accordingly subject to revision. See attachedtable for further details.

"Net loss excluding net realized gains and losses"(1) for the quarter was$868.2 million, a net loss of $5.82 per ordinary share, compared with netincome of $199.4 million, or net income of $1.43 per ordinary share, for thequarter a year ago. See below for a reconciliation of "net income/lossexcluding net realized gains and losses"(1) to net loss to ordinaryshareholders.

For the twelve months ended December 31, 2005, net loss to ordinaryshareholders was $1,292.3 million, or a net loss of $9.14 per ordinary share,compared with net income of $1,126.3 million or net income of $8.13 perordinary share for the twelve months ended December 31, 2004. "Net lossexcluding net realized gains and losses"(1) for the twelve months endedDecember 31, 2005 was $1,535.4 million or a net loss of $10.86 per ordinaryshare compared with net income of $820.7 million or net income of $5.92 perordinary share for the twelve months ended December 31, 2004.

The twelve months ended December 31, 2005 included a net loss of$1,865.1 million for the 2005 third and fourth quarter natural catastrophes,after taking into account net reinstatement premiums and tax effects. Inaddition, it also included a net loss of $808.9 million, net of interestreceived, associated with the Winterthur Decision. Net loss for the twelvemonths ended December 31, 2004 included a net loss of $558.2 million relatedto the 2004 third and fourth quarter natural catastrophes.

At December 31, 2005, total net invested assets were $41.6 billion, up28.4% from December 31, 2004, and total assets were $58.4 billion, up 19% fromDecember 31, 2004.

Commenting on these results, President and Chief Executive Officer BrianM. O'Hara said: "We are extremely disappointed with the impact the third andfourth quarters events had on our financial performance. However, the naturalcatastrophes of 2005 have led to more attractive markets, and in true XLtradition, we are executing on these opportunities with a focus on maximizingrisk-adjusted returns. I believe that XL's solid balance sheet, geographicbreadth and diversification of platforms will serve us well in 2006."

    HIGHLIGHTS (Fourth quarter 2005 versus fourth quarter 2004)    -- Successfully raised a total of $3.2 billion through the issuance of       ordinary shares and equity security units in December 2005 to replenish       capital base    -- Contribution from financial operations was up 54% to $71.2 million    -- Cash flow from operations was $1,067 million, or $492 million excluding       proceeds of $575 million related to the Winterthur Decision. Structured       and spread businesses contributed a further $478 million to cash flow       during the quarter    -- Net investment income from general operations (excluding interest       received related to the Winterthur Decision) was up 27%    -- The combined ratio from general operations was 165.1% or 92.0%       excluding the charge related to the Winterthur Decision and the 2005       third and fourth quarter natural catastrophes    -- Cyrus Re quota share executed for 2006 to support XL's strategy to       maximize risk adjusted returns    HIGHLIGHTS (Full year 2005 versus full year 2004)    -- Contribution from financial operations was up 66% to $234.8 million    -- Cash flow from operations was $4,249 million, or $3,674 million       excluding proceeds of $575 million related to the Winterthur Decision.       Structured and spread businesses contributed a further $2,024 million       to cash flow during the year    -- Net investment income from general operations (excluding interest       received related to the Winterthur Decision and a structured credit       transaction) was up 21%    -- The combined ratio from general operations was 132.9% or 92.1%       excluding the charge related to the Winterthur Decision and the 2005       third and fourth quarter natural catastrophes    SEGMENT HIGHLIGHTS:    Insurance Operations

Underwriting loss for the quarter ended December 31, 2005 was$1,092.8 million compared with an underwriting profit of $49.1 million in thequarter ended December 31, 2004. These results included the pre-tax net impactof natural catastrophes of $285.1 million and $110.5 million in 2005 and 2004,respectively. The fourth quarter 2005 also included the charge related to theWinterthur Decision of $834.2 million pre and post tax. See attached table forfurther details.

Fourth quarter 2005 compared with fourth quarter 2004 results (excludingthe impact of catastrophes and the charge related to the Winterthur Decisionin the fourth quarter of 2005):

    -- Net premiums written were flat at $1,028.7 million    -- Net premiums earned increased 3% as a result of business growth and       higher net retention    -- The combined ratio increased from 85.1% in 2004 to 97.5% in 2005 due to       the favorable reduction in 2004 of the property loss ratio.

Underwriting loss for the year ended December 31, 2005 was$1,486.6 million compared with an underwriting profit of $159.7 million forthe year ended December 31, 2004. These results included the pre-tax netimpact of natural catastrophes of $1,036.1 million and $310.5 million in 2005and 2004, respectively, and the charge related to the Winterthur Decision of$834.2 million in 2005.

Reinsurance Operations

General Operations -- Underwriting loss for the quarter endedDecember 31, 2005 was $32.3 million compared with an underwriting profit of$43.7 million in the quarter ended December 31, 2004. These results includedthe pre-tax net impact of catastrophes of $140.9 million and $39.5 million in2005 and 2004, respectively.

Fourth quarter 2005 as compared with fourth quarter 2004 results(excluding the impact of natural catastrophes in both quarters):

    -- Gross and net premiums written were up 11.3% and 6.6%, respectively,       excluding the impact of timing differences noted last quarter. For the       full year 2005 as compared with 2004, gross and net premiums written       were both down 4%    -- Net premiums earned were down 3.6%, reflecting the effects of lower net       premiums written over the previous twenty four months    -- The combined ratio was 83.6% compared with 90.3% in the prior year       quarter due mainly to a lower loss ratio. The loss ratio improved due       to a lower level of non-catastrophe losses in the fourth quarter of       2005

Underwriting loss for the year ended December 31, 2005 was$781.6 million compared with an underwriting profit of $184.3 million in theyear ended December 31, 2004. These results included the pre-tax net impact ofnatural catastrophes of $943.2 million and $285.4 million in 2005 and 2004,respectively. See attached table for further details.

Life and Annuity Operations -- Gross premiums written decreased 36.3% as aresult of $97 million of long duration annuity premiums assumed in the fourthquarter of 2004 with no similar transaction occurring in the fourth quarter of2005. Net income was $9.8 million, an increase from $2.6 million in the fourthquarter of 2004 substantially due to higher net investment income.

For the twelve months ended December 31, 2005 as compared with 2004, grosspremiums written increased 63% principally due to the $1.8 billion U.K.annuity reinsurance transaction assumed in the second quarter of 2005. Netloss for the 2005 year was $29.9 million as compared with net income of$28.4 million in 2004 due to the charge of $63.3 million in the second quarter2005 for the increase in future policy benefit reserves and awrite off of deferred acquisition costs on certain U.S.-based term-lifemortality reinsurance business.

Financial Products and Services Operations

Underwriting profit for the segment rose to $16.8 million in the fourthquarter of 2005 compared with $10.1 million in the fourth quarter 2004. Totalcontribution for the segment was $71.2 million in the fourth quarter of 2005compared with $46.3 million in the fourth quarter of 2004. This increase wasdriven largely by higher levels of business activity and higher net investmentincome due to a special dividend received from our joint venture withFinancial Security Assurance. The year-over-year increase in net investedassets from municipal GIC and funding agreement issuances also added to totalcontribution in fourth quarter 2005.

For the year ended December 31, 2005, underwriting profit increased to$60.2 million as compared with $28.3 million for the year endedDecember 31, 2004 due mainly to lower net losses. Total contribution for thesegment was $234.8 million in 2005 compared with $141.1 million in 2004 mainlydue to higher underwriting profits and an increase in financial guarantyinvestment income.

Corporate Items

Net investment income from general operations increased 42.3% over thefourth quarter of 2004 to $233.1 million due to a higher investment base, arise in average yields, and $25.3 million of interest related to the$575 million payment received in connection with the Winterthur Decision. Netincome from investment affiliates was $38.4 million in the fourth quarter of2005 compared with $47.3 million in the fourth quarter of 2004.

For the year ended December 31, 2005, net investment income from generaloperations (excluding interest received related to the Winterthur Decision anda structured credit transaction) was up 21% compared with 2004. Net incomefrom investment affiliates was $154.8 million in 2005 compared with$124.0 million in 2004.

Net realized gains on investments were $37.9 million in the quarter,compared with $65.4 million in the prior year period. Net unrealized gains oninvestments, net of tax, were $396.2 million at December 31, 2005 comparedwith $551.6 million at September 30, 2005 primarily reflecting a rise in U.S.interest rates during the quarter.

Total operating expenses decreased to $224 million in the fourth quarterof 2005 from $288 million in the fourth quarter of 2004. Total operatingexpenses decreased to $982 million in the 2005 year from $1,053 million in the2004 year. This was primarily due to continued productivity and expensemanagement efforts and adjustments in certain 2005 compensation costsassociated with XL's pay-for-performance focus.

The Company will host a conference call to discuss its fourth quarter andyear end 2005 results on February 8, 2006 at 10:00 a.m. Eastern time. Theconference call can be accessed through a listen-only dial-in number orthrough a live webcast. To listen to the conference call, please dial(201) 689-8320 password XL208. The webcast will be available on XL's websitelocated at www.xlgroup.com and will be archived on XL's website fromapproximately 1:00 p.m. Eastern time on February 8, 2006 through midnightEastern time on March 8, 2006. A slide presentation accompanying the Company'sdiscussion of its fourth quarter and year end 2005 results will also beavailable on the Company's website located at www.xlgroup.com beginningapproximately 15 minutes before the commencement of the conference call.

A telephone replay of the conference call will be available beginning atapproximately 1:00 p.m. Eastern time February 8, 2006 until approximately 8:00p.m. Eastern time on February 15, 2006 by dialing (201) 612-7415 (accountnumber: 290 and conference I.D. number: 188545). An unaudited financialsupplement relating to the Company's fourth quarter and year end 2005 resultsis available on its website located at www.xlgroup.com.

XL Capital Ltd, through its operating subsidiaries, is a leading providerof insurance and reinsurance coverages and financial products and services toindustrial, commercial and professional service firms, insurance companies andother enterprises on a worldwide basis. As of December 31, 2005,XL Capital Ltd had consolidated assets of approximately $58.4 billion andconsolidated shareholders' equity of approximately $8.5 billion. Moreinformation about XL Capital Ltd is available at www.xlgroup.com.

This press release contains forward-looking statements. Statements thatare not historical facts, including statements about XL's beliefs, plans orexpectations, are forward-looking statements. These statements are based oncurrent plans, estimates, and expectations. Actual results may differmaterially from those included in such forward-looking statements andtherefore you should not place undue reliance on them. A non-exclusive list ofthe important factors that could cause actual results to differ materiallyfrom those in such forward-looking statements includes the following: (a)changes in the size of XL's claims relating to the hurricane losses describedabove due to the preliminary nature of some of the reports and estimates ofloss and damage to date; (b) greater frequency or severity of claims and lossactivity than XL's underwriting, reserving or investment practices anticipatebased on historical experience or industry data; (c) trends in rates forproperty and casualty insurance and reinsurance; (d) developments in theworld's financial and capital markets that adversely affect the performance ofXL's investments or access to such markets; (e) changes in general economicconditions, including foreign currency exchange rates, inflation and otherfactors; and (f) the other factors set forth in XL's most recent reports onForm 10-K, Form 10-Q, and other documents on file with the Securities andExchange Commission, as well as management's response to any of theaforementioned factors. XL undertakes no obligation to update or revisepublicly any forward-looking statement, whether as a result of newinformation, future developments or otherwise.

    (1) Defined as "net income/loss excluding net realized gains and losses on        investments and net realized and unrealized gains and losses on        credit, structured financial and investment derivatives, net of tax"        herein referred to as "net income/loss excluding net realized gains        and losses". Net income/ loss excluding net realized gains and losses        is a non-GAAP measure. See the scheduled entitled "Reconciliation"        at the end of this release for a reconciliation of net income/loss        excluding net realized gains and losses to net income/loss available        to ordinary shareholders.                                  XL Capital Ltd                       SUMMARY CONSOLIDATED FINANCIAL DATA                           (U.S. dollars in thousands)                                  Three Months Ended       Twelve Months Ended    Income Statement Data:           December 31               December 31                                     (Unaudited)               (Unaudited)                                   2005        2004         2005         2004    Revenues:                               (Note 1)                  (Note 1)    Gross premiums written:       - general operations  $1,719,650  $1,811,336   $9,196,837   $9,381,462         - life and annuity                 operations     143,893     226,007    2,274,520    1,397,516     - financial operations     115,306      97,331      378,140      345,235    Net premiums written:       - general operations   1,304,905   1,332,701    7,024,111    7,269,734         - life and annuity                 operations     134,877     193,146    2,236,903    1,363,131     - financial operations     107,873      91,474      356,445      325,662    Net premiums earned:       - general operations   1,724,479   1,705,732    6,873,638    6,987,940         - life and annuity                 operations     135,071     193,326    2,237,721    1,365,176     - financial operations      93,688      53,797      254,136      228,898    Net investment income       432,741     287,474    1,475,039    1,035,012    Net realized gains     on investments              37,933      65,432      241,882      246,547    Net realized and     unrealized  gains     on derivatives              13,639      38,679       28,858       73,493    Net income from     investment affiliates       38,371      47,328      154,844      124,008    Fee income and other          3,564       9,447       19,297       35,317             Total revenues  $2,479,486  $2,401,215  $11,285,415  $10,096,391    Expenses:    Net losses and loss     expenses incurred       $2,469,264  $1,197,452   $7,465,001   $4,911,488    Claims and policy     benefits                   190,116     227,124    2,479,364    1,480,535    Acquisition costs           293,944     299,176    1,195,344    1,264,864    Operating expenses          223,638     288,267      982,059    1,053,135    Exchange losses (gains)       5,566     (18,030)      10,954      (40,678)    Interest expense            128,049      99,816      403,849      292,234    Amortization of     intangible assets            2,248       6,057       10,752       15,827             Total expenses  $3,312,825  $2,099,862  $12,547,323   $8,977,405    Net (loss) income before     minority interest,     income tax and net     income from operating     affiliates               $(833,339)   $301,353  $(1,261,908)  $1,118,986    Minority interest in net     income of subsidiary         1,445         346        8,210        8,387    Income tax                    1,972       9,217       49,284       91,343    Net (income) from     operating affiliates       (24,901)     (6,338)     (67,426)    (147,357)    Net (loss) income         $(811,855)   $298,128  $(1,251,976)  $1,166,613    Preference share     dividends                  (10,082)    (10,080)     (40,322)     (40,321)    Net (loss) income     available to ordinary     shareholders             $(821,937)   $288,048  $(1,292,298)  $1,126,292    Note 1: Certain amounts in prior periods have been reclassified to            conform with the current year presentation.                                  XL Capital Ltd                       SUMMARY CONSOLIDATED FINANCIAL DATA                 (Shares in thousands, except per share amounts)                                                              Twelve Months                                          Three Months Ended      Ended    Income Statement Data (continued):       December 31       December 31                                             (Unaudited)       (Unaudited)                                              2005     2004     2005     2004                                                    (Note 1)          (Note 1)      Weighted average      number of ordinary shares      and ordinary share      equivalents:                 Basic :                   149,177  138,195  141,406  137,903                 Diluted :                 149,177  139,230  141,406  138,582      Per Share Data:      Net (loss) income       available to       ordinary shareholders                ($5.51)   $2.07   ($9.14)   $8.13      Ratios – General insurance       and reinsurance operations      Loss ratio                            140.3%    69.2%   107.1%    68.6%      Expense ratio                          24.8%    26.8%    25.8%    27.3%      Combined ratio                        165.1%    96.0%   132.9%    95.9%    Note 1: Certain amounts in prior periods have been reclassified to            conform with the current year presentation.                                 XL Capital Ltd                       SUMMARY CONSOLIDATED FINANCIAL DATA              (U.S. dollars in thousands, except per share amounts)    Balance Sheet Data:                        As at             As at                                         December 31, 2005 December 31, 2004                                            (Unaudited)         (Note 1)    Total investments available for sale       $35,724,439       $27,823,828    Net payable for investments purchased          639,034           273,535    Cash and cash equivalents                    3,693,475         2,203,726    Investments in affiliates                    2,046,721         1,936,852    Unpaid losses and loss expenses     recoverable                                 6,441,522         6,971,356    Total assets                                58,454,901        49,245,469    Unpaid losses and loss expenses             23,767,672        19,837,669    Deposit liabilities and     policy benefit reserves                    13,847,448        10,309,782    Unearned premiums                            5,388,996         5,191,368    Notes payable and debt                       3,412,698         2,721,431    Total shareholders' equity                   8,471,811         7,738,695    Book value per ordinary share                   $44.31            $51.98    Note 1: Certain amounts in prior periods have been reclassified to            conform with the current year presentation.                                 XL Capital Ltd        SUMMARY OF FINANCIAL IMPACT OF THIRD AND FOURTH QUARTER 2005                NATURAL CATASTROPHES AND CHARGE RELATED TO THE                  WINTERTHUR INDEPENDENT ACTUARIAL DECISION                            (U.S. dollars in millions)    Qtr end December 31, 2005  Gross Reinsurance  Net Reinstatement Net impact                                Loss  recoveries  loss   premium     pre tax    Insurance           Hurricane Katrina   $243.7   $149.6     $94.1  $(4.3)    $98.4              Hurricane Rita    236.8    161.8      75.0   (2.1)     77.1             Hurricane Wilma    172.7     64.3     108.4   (1.2)    109.6           Winterthur charge      -     (834.2)    834.2    -       834.2                               $653.2  $(458.5) $1,111.7  $(7.6) $1,119.3    Reinsurance           Hurricane Katrina    $48.0    $55.5     $(7.5)  $4.8    $(12.3)              Hurricane Rita     33.9     14.6      19.3    4.9      14.4             Hurricane Wilma    214.4     75.7     138.7    6.2     132.5     Other catastrophes (Note 1)  6.3      -         6.3    -         6.3                               $302.6   $145.8    $156.8  $15.9    $140.9    Financial products     and services           Hurricane Katrina    $23.6     $-       $23.6  $23.6      $-    TOTAL - Pre tax           Hurricane Katrina   $315.3   $205.1    $110.2  $24.1     $86.1              Hurricane Rita    270.7    176.4      94.3    2.8      91.5             Hurricane Wilma    387.1    140.0     247.1    5.0     242.1          Wintherthur charge      -     (834.2)    834.2    -       834.2     Other catastrophes (Note 1)  6.3      -         6.3    -         6.3                               $979.4  $(312.7) $1,292.1  $31.9  $1,260.2      Net investment income                                         $25.3                  Tax impact                                         35.3            TOTAL - Post tax                                     $1,199.6    Qtr end December 31, 2004    Insurance (Note 2)         $150.3    $40.0    $110.3  $(0.2)   $110.5    Reinsurance (Note 2)       $145.1   $111.0     $34.1  $(5.4)    $39.5    TOTAL - Pre tax            $295.4   $151.0    $144.4  $(5.6)   $150.0                  Tax impact                                        $12.0            TOTAL - Post tax                                       $138.0    Notes    1. Includes European floods.    2. Includes Hurricanes Charley, Frances, Ivan and Jeanne and the Indian       Ocean Tsunami.                                 XL Capital Ltd        SUMMARY OF FINANCIAL IMPACT OF THIRD AND FOURTH QUARTER 2005               NATURAL CATASTROPHES AND CHARGE RELATED TO THE                  WINTERTHUR INDEPENDENT ACTUARIAL DECISION                            (U.S. dollars in millions)    Year end December 31, 2005 Gross Reinsurance  Net Reinstatement Net impact                                Loss  recoveries  loss     premium   pre tax    Insurance       Hurricane Katrina       $1,339.7   $748.6   $591.1 $(74.6)   $665.7          Hurricane Rita          521.9    312.9    209.0  (13.3)    222.3         Hurricane Wilma          172.7     64.3    108.4   (1.2)    109.6       Winterthur charge            -     (834.2)   834.2    -       834.2    Other catastrophes (Note 1)    40.2      1.7     38.5    -        38.5                               $2,074.5   $293.3 $1,781.2 $(89.1) $1,870.3    Reinsurance       Hurricane Katrina       $1,128.0   $495.2   $632.8  $16.3    $616.5          Hurricane Rita          232.4     83.5    148.9    8.8     140.1         Hurricane Wilma          214.4     75.7    138.7    6.2     132.5    Other catastrophes (Note 1)    57.5      -       57.5    3.4      54.1                               $1,632.3   $654.4   $977.9  $34.7    $943.2    Financial products     and services       Hurricane Katrina          $45.0     $-      $45.0  $23.6     $21.4    TOTAL - Pre tax       Hurricane Katrina       $2,512.7 $1,243.8 $1,268.9 $(34.7) $1,303.6          Hurricane Rita          754.3    396.4    357.9   (4.5)    362.4         Hurricane Wilma          387.1    140.0    247.1    5.0     242.1      Wintherthur charge            -     (834.2)   834.2    -       834.2    Other catastrophes (Note 1)    97.7      1.7     96.0    3.4      92.6                               $3,751.8   $947.7 $2,804.1 $(30.8) $2,834.9   Net investment income                                             $25.3              Tax impact                                             135.6        TOTAL - Post tax                                          $2,674.0    Year end December 31, 2004    Insurance (Note 2)           $422.3   $124.0   $298.3 $(12.2)   $310.5    Reinsurance (Note 2)         $429.3   $136.4   $292.9   $7.5    $285.4    TOTAL - Pre tax              $851.6   $260.4   $591.2  $(4.7)   $595.9              Tax impact                                             $37.7        TOTAL - Post tax                                            $558.2    Notes    1. Includes Hurricanes Dennis, Emily, Ophelia, European and Mumbai Floods       and Typhoon Mawar.    2. Includes Hurricanes Charley, Frances, Ivan and Jeanne and the Indian       Ocean Tsunami.                                 XL Capital Ltd        SUMMARY OF FINANCIAL IMPACT OF THIRD AND FOURTH QUARTER 2005             NATURAL CATASTROPHES AND THE CHARGE RELATED TO THE                  WINTERTHUR INDEPENDENT ACTUARIAL DECISION                            (U.S. dollars in millions)    GENERAL OPERATIONS                      Quarter end December 31, 2005                                                                   Excluding                                                    Catastrophes  Catastrophes                                                         and         and                                                      Winterthur  Winterthur                                         As reported    charge      charge    INSURANCE    Gross premiums written                  $1,364.3        $1.2   $1,363.1    Net premiums written                     1,021.1        (7.6)   1,028.7    Net premiums earned                      1,032.8        (7.6)   1,040.4    Fee and other income                         2.9         -          2.9    Net losses and loss expenses             1,879.3     1,111.7      767.6    Acquisition costs                          128.7         -        128.7    Operating expenses                         118.1         -        118.1    Exchange (gains) losses                      2.4         -          2.4    Underwriting (loss) profit             $(1,092.8)  $(1,119.3)     $26.5    Loss ratio                                182.0%                  73.8%    Combined ratio                            205.9%                  97.5%    REINSURANCE    Gross premiums written                    $355.3       $23.0     $332.3    Net premiums written                       283.8        15.9      267.9    Net premiums earned                        691.7        15.9      675.8    Fee and other income                         -           -          -    Net losses and loss expenses               539.6       156.8      382.8    Acquisition costs                          148.0         -        148.0    Operating expenses                          34.0         -         34.0    Exchange (gains) losses                      2.4         -          2.4    Underwriting (loss) profit                $(32.3)    $(140.9)    $108.6    Loss ratio                                 78.0%                  56.6%    Combined ratio                            104.3%                  83.6%    TOTAL    Gross premiums written                  $1,719.6       $24.2   $1,695.4    Net premiums written                     1,304.9         8.3    1,296.6    Net premiums earned                      1,724.5         8.3    1,716.2    Fee and other income                         2.9         -          2.9    Net losses and loss expenses             2,418.9     1,268.5    1,150.4    Acquisition costs                          276.7         -        276.7    Operating expenses                         152.1         -        152.1    Exchange (gains) losses                      4.8         -          4.8    Underwriting (loss) profit             $(1,125.1)  $(1,260.2)    $135.1    Loss ratio                                140.3%                  67.0%    Combined ratio                            165.1%                  92.0%    GENERAL OPERATIONS                      Quarter end December 31, 2004                                                      (Note 1)                                                     Catastrophes  Excluding                                         As reported              Catastrophes    INSURANCE    Gross premiums written                  $1,358.6       $-      $1,358.6    Net premiums written                     1,025.3       (0.2)    1,025.5    Net premiums earned                      1,009.8       (0.2)    1,010.0    Fee and other income                         6.8        -           6.8    Net losses and loss expenses               723.4      110.3       613.1    Acquisition costs                          118.7        -         118.7    Operating expenses                         127.9        -         127.9    Exchange (gains) losses                     (2.5)       -          (2.5)    Underwriting (loss) profit                 $49.1    $(110.5)     $159.6    Loss ratio                                 71.6%                  60.7%    Combined ratio                             96.1%                  85.1%    REINSURANCE    Gross premiums written                    $452.7      $26.9