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HAMILTON, BERMUDA, February 12, 2002 -- XL Capital Ltd ("XL" or the "Company") (NYSE: XL) today reported a net loss of $83.6 million, or a loss of $0.64 per share in the fourth quarter of 2001, compared with net income of $0.6 million, or income of $0.01 per share, in 2000's fourth quarter. The net operating loss for the fourth quarter ended December 31, 2001 was $6.1 million, or a loss of $0.05 per share, compared to net operating income of $143.0 million, or income of $1.13 per share in the fourth quarter a year ago. Economic operating income was $8.2 million, or $0.06 per share, in the fourth quarter of 2001 compared with $160.1 million, or $1.26 per share, during the same period in 2000. These results reflect the inclusion of the acquired Winterthur International operations from July 1, 2001.

The Company's 2001 fourth quarter results primarily reflect previously announced adverse prior period loss development on its U.S. casualty reinsurance book, losses related to the bankruptcy of Enron Corp., American Airlines Flight 587 and several large European property losses.

For the year ended December 31, 2001, the net loss was $576.1 million, or a loss of $4.55 per share, compared with net income of $506.4 million, or income of $4.03 per share, for the year ended December 31, 2000. The net operating loss for 2001 was $451.2 million, or a loss of $3.56 per share, compared with net operating income of $567.6 million, or income of $4.52 per share, for the year ended December 31, 2000. The economic operating loss was $392.6 million, or a loss of $3.10 per share, during 2001 compared with economic operating income of $626.2 million, or income of $4.98 per share, for 2000.

Summary unaudited consolidated financial data for the three months and year ended December 31 for each of 2001 and 2000 is set forth below (in millions, except per share amounts):

                                           Three months      Year ended                                           ended December 31   December 31                                             (Unaudited)      (Unaudited)                                       2001     2000      2001      2000Net premiums earned                 $ 891.5  $ 497.4 $ 2,779.9 $ 2,035.2Net (loss) income                     (83.6)     0.6    (576.1)    506.4Net operating (loss) income (a)        (6.1)   143.0    (451.2)    567.6Economic operating income (loss) (b)    8.2    160.1    (392.6)    626.2                                Per share results:                              Net (loss) income                    $ (0.64)  $ 0.01   $ (4.55)   $ 4.03Net operating (loss) income (a)        (0.05)    1.13     (3.56)     4.52Economic operating income (loss) (b)    0.06     1.26     (3.10)     4.98                                Average shares outstanding  Basic (c) 130.6    124.3     126.7     124.5                            Diluted   133.2    126.9     128.7     125.7

Notes: (a) Net operating (loss) income is net (loss) income excluding net realized gains and losses on investments, net realized and unrealized gains and losses on derivatives and one-time charges, including realignment charges in 2000, net of tax. (b) Economic operating income (loss) is net operating (loss) income excluding amortization of intangible assets. (c) Basic weighted average shares outstanding are used to calculate losses per share.

Commenting on the fourth quarter results, Brian M. O'Hara, President and Chief Executive Officer of XL, stated, "The underwriting results for 2001 were the worst ever for the property and casualty industry. Although our fourth quarter results are disappointing, primarily reflecting the impact of certain prior period loss reserve adjustments and a number of large losses, we are pleased to note significant growth in premiums written, due largely to our expanded global platform and demonstrating our strength in the upward turn in the underwriting cycle."

"The changes in the market are allowing us to demonstrate underwriting leadership while obtaining substantial price increases in all of our business lines during the important January 1 renewal season on a much larger base than a year ago," Mr. O'Hara noted.

Total revenues were $1.7 billion and $0.6 billion for the quarters ended December 31, 2001 and 2000, respectively. For the years ended December 31, 2001 and 2000, revenues were $4.1 billion and $2.7 billion, respectively.

Non-life gross premiums written were $1.5 billion for the fourth quarter of 2001, compared with $0.8 billion for the fourth quarter of 2000. Non-life net premiums earned were $891.5 million in the fourth quarter of 2001, of which $172.0 million relates to XL Winterthur International, versus $497.4 million in the fourth quarter of 2000.

For the year ended December 31, 2001, non-life gross premiums written were $4.8 billion compared with $3.1 billion in 2000. Non-life net premiums earned were $2.8 billion in 2001, of which $353.1 million relates to XL Winterthur International versus $2.0 billion in 2000.

Life premiums assumed in the fourth quarter of 2001 were $649.3 million and for the year were $695.6 million. There were no life premiums assumed in 2000.

Net investment income was $149.6 million in the fourth quarter of 2001 compared with $142.9 million in 2000's fourth quarter. Net realized losses on investments and net realized and unrealized losses on derivatives in the fourth quarters of 2001 and 2000 were $69.9 million and $24.2 million, respectively.

Net investment income was $562.6 million during 2001, compared with $542.5 million in 2000. Net realized losses on investments and net realized and unrealized losses on derivatives in the year ended December 31, 2001 were $105.4 million compared to net gains of $50.6 million in the year ended December 31, 2000.

The Company's equity in the net earnings of its insurance and investment affiliates for the fourth quarter was $10.1 million in 2001 compared to $12.7 million in the fourth quarter of 2000. The Company's equity in the net earnings of its insurance and investment affiliates was $75.3 million in the 2001 fiscal year compared to $74.4 million in the 2000 fiscal year.

Total assets as at December 31, 2001 were $28.0 billion compared with $16.9 billion as at December 31, 2000. Shareholders' equity as at December 31, 2001 was $5.4 billion compared with $5.6 billion as at December 31, 2000. Fully diluted book value per share as at December 31, 2001 was $40.82 compared with $44.78 as at December 31, 2000.

In the fourth quarter of 2001, the combined ratio was 128.6% compared with 139.0% in the fourth quarter of 2000. The loss ratios were 94.8% and 93.1% in the fourth quarters of 2001 and 2000, respectively, and the corresponding expense ratios were 33.8% and 45.9%, respectively.

The combined ratio for the Company was 139.9% in the full year 2001 compared with 106.8% in 2000. The loss ratios were 105.0% and 70.4% in 2001 and 2000, respectively, with the corresponding expense ratios being 34.9% and 36.4%, respectively.

In the fourth quarter of 2001, the Company issued 9.2 million shares for total net proceeds of $787.7 million. During the year ended December 31, 2001, the Company repurchased 1.5 million of its shares at an average price of $76.40 per share. XL has approximately $135.4 million remaining in its current share repurchase authorization.

A live on-line webcast of a call with analysts and investors will be held at 8:00 a.m. Eastern Time on Wednesday, February 13, 2002 to review the fourth quarter results at www.xlgroup.com. XL Capital Ltd, through its operating 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. Additional unaudited supplemental financial information relating to the Company's 2001, 2000 and 1999 results are available on its web site: www.xlgroup.com.

This press release contains forward-looking statements that involve inherent risks and uncertainties. Statements that are not 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 from those projected in such forward-looking statements and therefore you should not place undue reliance 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 includes the following: (a) rate increases and improvements in terms and conditions may not be as large or significant as XL is currently projecting; (b) the size of XL's claims may change due to the preliminary nature of reports and estimates of loss and damage; (c) the timely and full recoverability of reinsurance placed by XL with third parties; (d) the timing of claims being faster or the receipt of reinsurance recoverables being slower than anticipated by XL; (e) increased competition based on pricing, capacity, coverage terms or other factors; (f) 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 investment practices anticipate based on historical experience or industry data; (g) developments in the world's financial and capital markets which adversely affect the performance of XL's investments and XL's access to such markets; (h) the potential impact of U.S. solutions to make available insurance coverage for acts of terrorism; (i) developments in the Enron bankruptcy proceedings or other developments related to Enron; (j) the effects of mergers, acquisitions or divestitures; (k) changes in rating agency policy or practices; (l) changes in accounting policies or practices; (m) legislative or regulatory developments; (n) changes in general economic conditions, including inflation, foreign currency exchange rates and other factors; (o) the effects of business disruption or economic contraction due to terrorism or other hostilities; and (p) the other factors set forth in XL's most recent 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.

# # #
                                  XL Capital Ltd                       SUMMARY CONSOLIDATED FINANCIAL DATA                     (In thousands, except per share amounts)                            Three Months Ended             Year Ended                                December 31                December 31                                (Unaudited)                (Unaudited)                             2001          2000        2001           2000    Income Statement Data:    Revenues      Net premiums earned  891,512       497,421    2,779,927     2,035,240      Life premiums       assumed             649,348            --      695,595            --      Net investment       income              149,637       142,909      562,606       542,500      Equity in net income       of investment       affiliates           16,234        12,164       80,580        70,032      Net realized (losses)       gains on       investments        (63,593)       (7,134)     (93,237)        45,090      Net realized and       unrealized (losses)       gains on       derivatives         (6,284)      (17,103)     (12,176)         5,481      Fee income and other  16,912         5,958       43,464        14,793                         1,653,766       634,215    4,056,759     2,713,136    Expenses      Net losses and       loss expenses       845,171       463,185    2,918,898     1,432,559      Change in policy       benefit reserves    652,202            --      698,675            --      Acquisition costs,       operating expenses,       and exchange gains       and losses          327,167       189,800    1,073,903       743,067      Interest expense      23,112         8,428       65,350        32,147      Amortization of       intangible assets    14,353        17,188       58,569        58,597                         1,862,005       678,601    4,815,395     2,266,370    Net (loss) income      before items below (208,239)      (44,386)    (758,636)       446,766    Income tax (benefit)      expense            (132,710)      (45,090)    (189,914)      (56,356)    Minority interest        1,986           565        2,113         1,093    Equity in net loss      (income) of insurance      affiliates             6,123         (509)        5,300       (4,323)    Net (loss) income    $(83,638)          $648   $(576,135)      $506,352    Weighted average number      of ordinary shares and      ordinary share      equivalents        - Basic            130,625       124,266      126,676       124,503        - Diluted          133,238       126,911      128,683       125,697    Per Share Data:      Net (loss) income    $(0.64)         $0.01      $(4.55)         $4.03      Net losses (gains)       on investments,       derivatives and       one time charges,       after tax              0.59          1.12         0.99          0.49      Net operating       (loss) income       $(0.05)        $ 1.13     $ (3.56)        $ 4.52      Amortization of       intangible assets      0.11          0.13         0.46          0.46      Economic operating       income (loss)        $ 0.06        $ 1.26     $ (3.10)        $ 4.98                                  XL Capital Ltd                       SUMMARY CONSOLIDATED FINANCIAL DATA                     (In thousands, except per share amounts)                                   (Unaudited)                                                       As at          As at                                                December 31,   December 31,                                                        2001           2000    Balance Sheet Data:    Total investments available for sale         $12,429,845     $9,501,548    Net payable for investments purchased          1,247,027      1,372,476    Cash and cash equivalents                      1,863,861        930,469    Investments in affiliates                      1,037,344        792,723    Intangible assets                              1,616,943      1,591,108    Total assets                                  27,963,075     16,941,952    Unpaid losses and loss expenses               11,825,680      5,672,062    Deposit liabilities and policy      benefit reserves                             2,374,164      1,209,926    Notes payable and debt                         1,604,877        450,032    Shareholders' equity                           5,437,184      5,573,668    Fully diluted book value per share                $40.82         $44.78                                XL Capital Ltd                      SUPPLEMENTARY SEGMENT INFORMATION                                (In thousands)                                 (Unaudited)                            FOR THE QUARTER ENDED                              December 31, 2001                                                          Financial                                        Total             Products &                  Insurance  Lloyd's Insurance Reinsurance Services    Total    Non-Life:    Gross premiums     written       $746,341  $211,796  $958,137  $483,717  $38,106 $1,479,960    Net premiums     written        473,994   187,758   661,752   182,689   31,854    876,295    Net premiums     earned         422,228   176,606   598,834   273,600   19,078    891,512    Fee income     and other        8,825      (621)    8,204    (2,156)  10,864     16,912    Net losses and     loss expenses  275,540   124,311   399,851   433,922   11,398    845,171    Acquisition     costs           76,439    52,270   128,709    73,798    1,274    203,781    Operating     expenses        53,282     4,834    58,116    26,316   13,371     97,803    Exchange (gains)     losses            (290)    1,151       861    (2,312)      --     (1,451)    Life:    Life premiums     assumed             --        --        --   649,348       --    649,348    Change in policy     benefit reserves    --        --        --   652,202       --    652,202    Underwriting     profit (loss)  $26,082   $(6,581)  $19,501 $(263,134)  $3,899  $(239,734)    Underwriting     loss                                                            (239,734)    Net investment     income                                                           149,637    Equity in net     income of     insurance and     investment     affiliates                                                        10,111    Corporate, taxes     and other                                                         88,197    Economic     operating income                                                  $8,211    Loss and loss     expense ratio     65.3%     70.4%     66.8%    158.6%    59.7%      94.8%    Underwriting     expense ratio     30.7%     32.3%     31.2%     36.6%    76.8%      33.8%    Combined ratio     96.0%    102.7%     98.0%    195.2%   136.5%     128.6%     NOTES:     1.  Ratios are based upon net premiums earned, excluding fee income and         other.     2.  The underwriting expense ratio excludes exchange gains and losses.     3.  Economic operating income excludes net realized gains and losses on         investments, net realized and unrealized gains and losses on         derivatives, one-time charges, net of tax, and amortization of         intangible assets.                                XL Capital Ltd                      SUPPLEMENTARY SEGMENT INFORMATION                                (In thousands)                                 (Unaudited)                            FOR THE QUARTER ENDED                              December 31, 2000                                                          Financial                                        Total             Products &                  Insurance  Lloyd's Insurance Reinsurance Services    Total    Non-Life:    Gross premiums     written       $489,991   $86,695  $576,686  $195,681   $4,617   $776,984    Net premiums     written        306,343    51,435   357,778   102,253    4,099    464,130    Net premiums     earned         250,934    66,226   317,160   175,012    5,249    497,421    Fee income     and other        2,339    (2,972)     (633)     (968)   7,559      5,958    Net losses and     loss expenses  199,341    55,758   255,099   206,675    1,411    463,185    Acquisition     costs           42,437    31,707    74,144    62,067      201    136,412    Operating     expenses        35,533    12,256    47,789    31,678   12,360     91,827    Exchange (gains)     losses            (259)   (2,789)   (3,048)    2,604       --       (444)    Underwriting     profit (loss) $(23,779) $(33,678) $(57,457)$(128,980) $(1,164) $(187,601)    Underwriting     profit                                                          (187,601)    Net investment     income                                                           142,909    Equity in net     income of     insurance and     investment     affiliates                                                        12,673    Corporate, taxes     and other                                                        192,159    Economic operating     income                                                          $160,140    Loss and loss     expense ratio     79.4%     84.2%     80.4%    118.1%    26.9%      93.1%    Underwriting     expense ratio     31.1%     66.4%     38.5%     53.6%   239.3%      45.9%    Combined ratio    110.5%    150.6%    118.9%    171.7%   266.2%     139.0%     NOTES:     1.  Ratios are based upon net premiums earned, excluding fee income and         other.     2.  The underwriting expense ratio excludes exchange gains and losses.     3.  The combined ratio for the financial services segment would have been         124.9% if credit default swap fee income was included in net premiums         earned for purposes of calculating the expense ratio.     4.  Net losses incurred for the insurance segment include, and the         reinsurance segment exclude, $11.2 million relating to an         intercompany stop loss arrangement. Consolidated results are not         affected. The loss and loss expense ratio would have been 75.0% and         124.5% and the underwriting loss would have been $12.6 million and         $140.2 million in the insurance and reinsurance segments,         respectively, had this stop loss arrangement not been in place.     5.  Economic operating income excludes net realized gains and losses on         investments, net realized and unrealized gains and losses on         derivatives, one-time charges, including realignment charges, net of         tax, and amortization of intangible assets.                                XL Capital Ltd                      SUPPLEMENTARY SEGMENT INFORMATION                                (In thousands)                                 (Unaudited)                              FOR THE YEAR ENDED                              December 31, 2001                                                          Financial                                      Total               Products &                Insurance  Lloyd's  Insurance Reinsurance Services    Total    Non-Life:    Gross premiums     written  $2,168,325  $693,016 $2,861,341 $1,818,491 $103,890  $4,783,722    Net premiums     written   1,281,124   537,614  1,818,738  1,012,668   97,020   2,928,426    Net premiums     earned    1,222,196   481,307  1,703,503  1,029,618   46,806   2,779,927    Fee income     and other    22,065    (3,707)    18,358     (7,180)  32,286      43,464    Net losses and     loss     expenses    859,812   610,823  1,470,635  1,428,772   19,491   2,918,898    Acquisition     costs       187,443   155,804    343,247    292,069    3,730     639,046    Operating     expenses    178,530    22,215    200,745     87,169   42,404     330,318    Exchange     losses        4,924     3,198      8,122      4,062       --      12,184    Life:    Life premiums     assumed          --        --         --    695,595       --     695,595    Change in policy     benefit reserves --        --         --    698,675       --     698,675    Underwriting    profit    (loss)       $13,552 $(314,440) $(300,888) $(792,714) $13,467 $(1,080,135)    Underwriting     loss                                                          (1,080,135)    Net investment     income                                                           562,606    Equity in net     income of     insurance and     investment     affiliates                                                        75,280    Corporate,     taxes and other                                                   49,632    Economic     operating loss                                                 $(392,617)    Loss and loss     expense     ratio          70.4%    126.9%      86.3%     138.8%    41.6%      105.0%    Underwriting     expense ratio  29.9%     37.0%      31.9%      36.8%    98.6%       34.9%    Combined ratio 100.3%    163.9%     118.2%     175.6%   140.2%      139.9%     NOTES:     1.  Ratios are based upon net premiums earned, excluding fee income and         other.     2.  The underwriting expense ratio excludes exchange gains and losses.     3.  Economic operating loss excludes net realized gains and losses on         investments, net realized and unrealized gains and losses on         derivatives, one-time charges, net of tax, and amortization of         intangible assets.                                XL Capital Ltd                      SUPPLEMENTARY SEGMENT INFORMATION                                (In thousands)                                 (Unaudited)                              FOR THE YEAR ENDED                              December 31, 2000                                                          Financial                                      Total               Products &                Insurance  Lloyd's  Insurance Reinsurance Services    Total    Non-Life:    Gross premiums     written  $1,335,802  $486,640 $1,822,442 $1,251,221  $55,368  $3,129,031    Net premiums     written     832,171   311,814  1,143,985    919,101   53,154   2,116,240    Net premiums     earned      726,506   357,824  1,084,330    927,195   23,715   2,035,240    Fee income     and other     7,692    (6,626)     1,066     (2,197)  15,924      14,793    Net losses and     loss     expenses    502,898   260,372    763,270    663,173    6,116   1,432,559    Acquisition     costs       117,251   119,870    237,121    247,352    1,323     485,796    Operating     expenses     94,129    28,727    122,856    102,132   29,969     254,957    Exchange     (gains)     losses       (2,344)   (5,986)    (8,330)     3,868       --      (4,462)    Underwriting     profit     (loss)      $22,264  $(51,785)  $(29,521)  $(91,527)  $2,231   $(118,817)    Underwriting     profit                                                          (118,817)    Net investment     income                                                           542,500    Equity in net     income of     insurance and     investment     affiliates                                                        74,355    Corporate, taxes     and other                                                        128,136    Economic     operating     income                                                          $626,174    Loss and loss     expense ratio  69.2%     72.8%      70.4%      71.5%    25.8%       70.4%    Underwriting     expense     ratio          29.1%     41.5%      33.2%      37.7%   131.9%       36.4%    Combined ratio  98.3%    114.3%     103.6%     109.2%   157.7%      106.8%     NOTES:     1.  Ratios are based upon net premiums earned, excluding fee income and         other.     2.  The underwriting expense ratio excludes exchange gains and losses.     3.  The combined ratio for the financial services segment would have been         107.6% if credit default swap fee income was included with net         premiums earned for purposes of calculating the expense ratio.     4.  Net losses incurred for the insurance segment include, and the         reinsurance segment exclude, $33.5 million relating to an         intercompany stop loss arrangement. Consolidated results are not         affected. The loss and loss expense ratio would have been 64.6% and         75.1% and the underwriting results would have been a profit of         $55.8 million and a loss of $125.0 million in the insurance and         reinsurance segments, respectively, had this stop loss arrangement         not been in place.     5.  Economic operating income excludes net realized gains and losses on         investments, net realized and unrealized gains and losses on         derivatives, one-time charges, including realignment charges, net of         tax, and amortization of intangible assets.                                XL Capital Ltd        SUPPLEMENTARY NON-LIFE PREMIUM INFORMATION BY LINE OF BUSINESS                                (In thousands)                                 (Unaudited)                            FOR THE QUARTER ENDED                              December 31, 2001                             Gross Premiums    Net Premiums  Net Premiums                                    Written         Written        Earned    Casualty                       $544,902        $343,452      $339,975    Property                        378,190         120,697       188,377    Marine, energy, aviation      and satellite                 111,878          68,588        74,595    Lloyd's syndicates              211,796         187,758       176,606    Other                           233,194         155,800       111,959    Total                        $1,479,960        $876,295      $891,512                            FOR THE QUARTER ENDED                              December 31, 2000                             Gross Premiums    Net Premiums  Net Premiums                                    Written         Written        Earned    Casualty                       $359,911        $209,571      $206,251    Property                        128,487          72,317        86,221    Marine, energy, aviation      and satellite                  58,690          39,238        48,105    Lloyd's syndicates               86,695          51,435        66,226    Other                           143,201          91,569        90,618    Total                          $776,984        $464,130      $497,421                                XL Capital Ltd        SUPPLEMENTARY NON-LIFE PREMIUM INFORMATION BY LINE OF BUSINESS                                (In thousands)                                 (Unaudited)                              FOR THE YEAR ENDED                              December 31, 2001                             Gross Premiums    Net Premiums  Net Premiums                                    Written         Written        Earned    Casualty                     $1,699,460      $1,073,474    $1,017,565    Property                      1,276,075         546,575       624,644    Marine, energy, aviation      and satellite                 510,291         310,197       287,387    Lloyd's syndicates              693,016         537,614       481,307    Other                           604,880         460,566       369,024    Total                        $4,783,722      $2,928,426    $2,779,927                              FOR THE YEAR ENDED                              December 31, 2000                             Gross Premiums    Net Premiums  Net Premiums                                    Written         Written        Earned    Casualty                     $1,127,551        $723,062      $749,105    Property                        728,212         537,037       467,165    Marine, energy, aviation      and satellite                 365,850         230,356       212,273    Lloyd's syndicates              486,640         311,814       357,824    Other                           420,778         313,971       248,873    Total                        $3,129,031      $2,116,240    $2,035,240