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Fourth Quarter Net Income $214.1 Million, or $1.56 Per Ordinary ShareFourth Quarter Net Operating Income $250.2 Million, or $1.82 Per Ordinary Share

HAMILTON, BERMUDA, February 11, 2003 --XL Capital Ltd ('XL' or the 'Company')(NYSE: XL - News) today reported net income available to ordinary shareholdersfor the quarter ended December 31, 2002 of $214.1 million, or net income of$1.56 per ordinary share, compared with a net loss of $83.6 million, or a netloss of $0.64 per ordinary share, in the fourth quarter of 2001. Net operatingincome for the fourth quarter of 2002 was $250.2 million, or $1.82 per ordinaryshare, compared with a net operating loss of $2.6 million, or a loss of $0.02per ordinary share, for the quarter ended December 31, 2001 (see below forreconciliation to net income).

For the year ended December 31, 2002, net income available to ordinaryshareholders was $396.0 million, or $2.88 per ordinary share, compared with a netloss of $576.1 million, or a loss of $4.55 per ordinary share, for the year endedDecember 31, 2001. Net operating income for 2002 was $700.8 million, or $5.10 perordinary share, compared with a net operating loss of $472.6 million, or a loss of $3.73 per ordinary share, for the year ended December 31, 2001.

Commenting on the fourth quarter 2002 results, Brian M. O'Hara, President and Chief Executive Officer of XL,stated: "We had a very good quarter with strong underwriting results, delivering an operating return oncommon equity of 17% and increasing our book value per ordinary share to $44.48. This was achieved whilestrengthening reserves during the quarter for prior years."

"The reserve strengthening primarily occurred in our U.S. casualty reinsurance business, reflectingdeterioration in the underwriting results for the 1997 to 2000 accident years. This reserve increaseof $215 million pre-tax, including $30 million for pre-1986 asbestos exposures, was largely offsetby overall favorable 1995 and prior years' loss development in other lines of business. The increasein the provision for asbestos exposures nearly doubles our reserves in this area, but this remains aminor exposure for XL," said Mr. O'Hara.

Mr. O'Hara further stated, "The markets in which we operate are robust. Prices are still rising in mostlines, and we are continuing to improve terms and conditions. XL's fundamental strength represented by ourcapital and people, position us well in all of our key markets for strong earnings growth in 2003."

Mr. O'Hara also stated, "Today we are announcing that all XL employee stock options granted in 2003 andbeyond will be expensed over their vesting periods. Our decision to expense stock options reflects XL'scommitment to transparency in financial reporting and good corporate governance. Our projections for 2003,including stock option expenses, remain in line with prior earnings guidance."

Total assets as of December 31, 2002 were $35.6 billion compared with $28.0 billion as of December 31, 2001.Fully diluted book value per ordinary share as at December 31, 2002 increased to $44.48 compared with $40.35as at December 31, 2001.

Summary unaudited consolidated financial data for the quarters and years ended December 31, for 2002 and 2001,respectively, are set forth below (in millions, except per share amounts):

                                  Three months ended          Year ended                                     December 31             December 31                                     (Unaudited)             (Unaudited)                                  2002          2001      2002         2001    Gross premiums written      $1,995.5      $2,076.2  $8,986.2     $5,421.3    Net premiums written         1,559.4       1,472.5   6,973.0      3,566.0    Net premiums earned          1,719.6       1,533.4   5,989.8      3,463.1    Net income (loss)             $221.4        $(83.6)   $405.6      $(576.1)    Preference dividend             (7.3)           --      (9.6)          --    Net income (loss) available     to ordinary shareholders     $214.1       $ (83.6)   $396.0     $ (576.1)    Per ordinary share results:      Net income (loss)       available to ordinary       shareholders  (a)           $1.56        $(0.64)    $2.88       $(4.55)    Weighted average     ordinary shares     outstanding:      Basic                        135.9         130.6     135.6        126.7      Diluted                      137.6         133.2     137.4        128.7    Note:    (a) Average stock options outstanding have been excluded where        anti-dilutive to earnings per share. Consequently, where there is a        net loss, basic weighted average ordinary shares outstanding is used        to calculate net loss per share.

Results for all periods subsequent to July 1, 2001 include the results of Winterthur International,which was acquired with effect from July 1, 2001. The results also include the consolidation of Le Mans Re,which is accounted for as a subsidiary with effect from January 1, 2002. In the three months and year endedDecember 31, 2001, the Company's share of the net income of Le Mans Re was included in equity in net incomeof insurance and operating affiliates. The foregoing affects period-to-period comparisons.

Gross premiums written for general operations in the fourth quarter of 2002 were $1.8 billion compared with$1.4 billion in the fourth quarter of 2001. Net premiums written increased to $1.4 billion from $823.2 millionand net earned premiums rose to $1.5 billion from $884.1 million in the respective quarters of 2002 and 2001.

Gross premiums written for life operations in the fourth quarter of 2002 were $220.7 million compared with $649.3million in the fourth quarter of 2001. Net premiums written for life operations in the fourth quarter of 2002were $187.6 million compared with $649.3 in the fourth quarter of 2002 million and net earned premiums were$186.9 million in the fourth quarter of 2002 compared with $649.3 million in the fourth quarter of 2001.

For the year ended December 31, 2002, gross premiums written for general operations were $7.9 billion compared with$4.7 billion a year ago. Net premiums written for general operations for the year ended December 31, 2002 were$5.9 billion compared with $2.9 billion a year ago. Net earned premiums for general operations were $5.0 billionin 2002 compared with $2.8 billion in 2001.

Gross premiums written for life operations for the year ended December 31, 2002 were $1.1 billion compared with$695.6 million a year ago. Net premiums written for life operations for the year were $1.0 billion and $695.6million, respectively, for 2002 and 2001. Net premiums earned for life operations were $1.0 billion in 2002compared with $695.6 million in 2001.

Net investment income from general operations was $168.5 million in the fourth quarter of 2002, compared with $164.0million in 2001's fourth quarter. Net investment income from general operations was $643.1 million for the year endedDecember 31, 2002 compared with $610.5 million in 2001.

Net investment income from life operations was $32.8 million in the fourth quarter of 2002 and $91.5 million for the year.In 2001, there was no investment income from life operations.

The Company's equity in the net income of its investment affiliates for the fourth quarter of 2002 was $26.5 millionversus $16.2 million in the fourth quarter of 2001. The Company's equity in the net income of its investment affiliatesfor the year ended December 31, 2002 was $64.7 million versus $80.6 million in 2001.

The Company's equity in net losses of its insurance and operating affiliates was $16.0 million in the fourth quarter of2002 versus net losses of $6.1 million in the fourth quarter of 2001. The Company's equity in the net losses of its insuranceand other operating affiliates was $16.0 million for the year ended December 31, 2002 versus net losses of $5.3 million in 2001.

The combined ratio for the Company's general insurance and reinsurance operations was 97.3% in the fourth quarter of 2002,versus 127.8% in the fourth quarter of 2001. The loss ratios were 69.0% and 94.8% in the quarters ended December 31, 2002 and2001, with corresponding expense ratios of 28.3% and 33.0% for the same quarters, respectively. The combined ratio for theCompany's general insurance and reinsurance operations was 97.0% for the year ended December 31, 2002 compared with 139.7%in 2001. The loss ratios were 68.0% and 105.8% in the years ended December 31, 2002 and 2001, respectively, with correspondingexpense ratios of 29.0% and 33.9% for the same periods.

A live on-line web cast of XL's call with analysts and investors to review the fourth quarter and full year 2002 results willbe held at 9:00 a.m. Eastern Time on February 12, 2003 at www.xlgroup.com. An unaudited financial information supplementrelating to the Company's 2002 and 2001 quarterly and full year results is available on its website: www.xlgroup.com.

XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financialproducts and services to industrial, commercial and professional service firms, insurance companies and other enterpriseson a worldwide basis.

This press release contains forward-looking statements that involve inherent risks and uncertainties. Statements that arenot historical facts, including statements about XL's beliefs, plans or expectations, are forward-looking statements.These statements are based on current plans, estimates, and expectations. Actual results may differ materially fromthose projected in such forward-looking statements and therefore you should not place undue reliance on them. Anon-exclusive list of the important factors that could cause actual results to differ materially from those in suchforward-looking statements includes the following: (a) rate increases and improvements in terms and conditions may notbe as large or sustainable as XL is currently projecting; (b) greater frequency or severity of claims and loss activity,including as a result of natural or man-made catastrophic events, than XL's underwriting, reserving or investmentpractices anticipate based on historical experience or industry data; (c) developments in the world's financial andcapital markets which adversely affect the performance of XL's investments and XL's access to such markets;(d) changes in general economic conditions, including foreign currency exchange rates, inflation and other factors;and (e) the other factors set forth in XL's most recent report on Form 10-K, Form 10-Q and XL's other documents onfile with the Securities and Exchange Commission. XL undertakes no obligation to update publicly or revise anyforward-looking statement, whether as a result of new information, future developments or otherwise.

                                XL Capital Ltd                     SUMMARY CONSOLIDATED FINANCIAL DATA           (In thousands of U.S. dollars, except per share amounts)                              Three Months Ended            Year Ended                                 December 31               December 31                                 (Unaudited)                (Unaudited)                               2002        2001 (a)       2002        2001 (a)    Income Statement Data:    Revenues:      Gross premiums       written - general       and life operations   $1,995,501  $2,076,187    $8,986,166  $5,421,262      Net premiums       written - general       and life operations    1,559,378   1,472,522     6,973,024   3,565,966      Net premiums       earned - general       operations            $1,532,654    $884,052    $4,966,818  $2,767,533      Net premiums       earned - life       operations               186,919     649,348     1,022,992     695,595      Net investment       income - general       operations               168,505     164,033       643,084     610,528      Net investment       income - life       operations                32,845       --           91,451       --      Net realized       gains (losses)       on investments            24,948     (63,593)     (214,160)    (93,237)      Net realized       and unrealized       (losses) gains       on derivative       instruments              (46,635)    (10,027)      (51,761)     11,768      Equity in net       income of       investment       affiliates                26,522      16,234        64,662      80,580      Fee and other income       16,473      17,128        54,963      18,247                             $1,942,231  $1,657,175    $6,578,049  $4,091,014    Expenses:      Net losses and       loss expenses       incurred - general       operations            $1,028,715    $834,184    $3,327,315  $2,905,231      Claims and policy       benefit reserves -       life operations          199,136     652,202     1,069,456     698,675      Acquisition costs       andoperating expenses    502,762     328,618     1,629,734   1,061,719      Exchange (gains)       and losses               (33,342)     (1,451)      (80,294)     12,184      Interest expense           34,510      37,508       168,086     113,272      Amortization of       intangible assets          4,687      14,353         6,187      58,569                             $1,736,468  $1,865,414    $6,120,484  $4,849,650    Income (loss) before     minority interest,     income tax expense     and equity in net     loss of insurance     and operating     affiliates                $205,763   $(208,239)    $ 457,565   $(758,636)    Minority interest             6,843       1,986        13,371       2,113    Income tax (benefit)     charge                     (38,493)   (132,710)       22,647    (189,914)    Equity in net loss     (income) of insurance      & operating affiliates     16,023       6,123        15,976       5,300    Net income (loss)          $221,390    $(83,638)     $405,571   $(576,135)    Preference dividend          (7,251)         --        (9,620)         --    Net income (loss)     available to ordinary     shareholders              $214,139    $(83,638)    $ 395,951   $(576,135)    Weighted average number     of ordinary shares and     ordinary share     equivalents:      Basic                     135,887     130,625       135,636     126,676      Diluted                   137,582     133,238       137,388     128,683    Per Share Data: (b)      Net income (loss)       available to ordinary       shareholders               $1.56      $(0.64)        $2.88      $(4.55)    Note:    (a)  Certain reclassifications, which have no effect on net income, have         been made to prior period results to conform to current presentation.    (b)  Average stock options outstanding have been excluded where         anti-dilutive to earnings per share. Consequently, where there is a         net loss, basic weighted average ordinary shares outstanding is used         to calculate net loss per share.                         SUPPLEMENTAL FINANCIAL DATA

The Company presents the fair value of all of its derivative transactions in one line item in the Company's statement of incomepresentation. In particular (i) the fair value adjustment for credit default swaps, (ii) the fair value adjustment for weatherand energy risk management derivatives, and (iii) the fair value adjustment for investment derivatives, are now reported inthe same line item in the income statement under "net realized and unrealized gains (losses) on derivative instruments."This reclassification did not affect net income. Prior period comparative information has been reclassified.The following is a reconciliation of the Company's net operating income (loss), to net income (loss), for the three monthsand years ended December 31, 2002 and 2001 (in millions except per share amounts):

                                     Three months ended         Year ended                                         December 31            December 31                                         (Unaudited)            (Unaudited)                                      2002        2001       2002        2001    Net income (loss) available     to ordinary shareholders        $214.1     $ (83.6)   $ 396.0    $(576.1)    Net realized (gains)     and losses on     investments,     net of tax                        (9.2)       71.2      236.5       98.8    Net realized and unrealized     losses (gains) on derivatives     46.6        10.0       51.7      (11.8)    Net gains (losses) on weather     & energy risk management     derivatives                       (1.3)       (0.2)      16.6       16.5    Net operating income (loss)      $250.2       $(2.6)    $700.8    $(472.6)    Per ordinary share results:      Net income (loss) available       to ordinary shareholders       $1.56      $(0.64)     $2.88     $(4.55)      Net operating income            $1.82      $(0.02)     $5.10     $(3.73)    Weighted average ordinary     shares outstanding:      Basic                           135.9       130.6      135.6      126.7      Diluted                         137.6       133.2      137.4      128.7

Net operating income is a non-GAAP measure. Net operating income is net income available to ordinary shareholders,excluding net realized gains and losses on investments and net realized and unrealized gains and losses on all derivatives(except for gains and losses on weather and energy risk management derivatives). These items are excluded because they arenot considered by management to be relevant indicators of the trends in XL's business operations, but rather of theinvestment and credit markets in general. Management believes that the presentation of net operating income (loss)provides useful information regarding XL's results of operations because it is an important performance indicatorfollowed by securities analysts who cover the Company.

                                XL Capital Ltd                     SUMMARY CONSOLIDATED FINANCIAL DATA           (In thousands of U.S. dollars, except per share amounts)                                 (Unaudited)                                    As at December 31,   As at December 31,                                            2002                 2001      Balance Sheet Data:      Total investments       available for sale                $16,059,733         $ 12,429,845      Net payable for investments       purchased                           1,546,276            1,247,027      Cash and cash equivalents            3,557,815            1,863,861      Investments in insurance and       operating affiliates                1,750,005            1,037,344      Intangible assets                    1,653,700            1,616,943      Total assets                        35,648,558           27,963,075      Unpaid losses and loss expenses     13,223,730           11,825,680      Deposit liabilities and policy       benefit reserves                    4,874,683            2,374,164      Notes payable and debt               1,877,957            1,604,877      Total Shareholders' equity           6,569,589            5,437,184      Fully diluted book value       per ordinary share                     $44.48               $40.35