XL Capital Ltd Issues Statement Regarding Media Coverage of Fitch Rating Agency's Downgrades of Security Capital Assurance Ltd and Its Subsidiaries
EXTON, Pennsylvania - March 27, 2008
HAMILTON, BERMUDA – March 27, 2008 – XL Capital Ltd (NYSE: XL) (the “Company”) announced today that, based on erroneous press reports, it sought to clear up confusion in the media regarding Fitch’s March 26 downgrading of ratings on Security Capital Assurance Ltd (NYSE: SCA) and its operating subsidiaries XL Capital Assurance Inc. (XLCA), XL Capital Group Assurance (U.K.) Ltd. (XLCA-UK), and XL Financial Assurance Ltd. (XLFA). XLCA, XLCA-UK, and XLFA are not subsidiaries of XL.The Company noted that the substantial majority of the structured finance collateralized debt obligations (CDOs) referred to in the Fitch release were written by XL Capital Group Assurance Inc. following SCA’s IPO in August 2006.The CDOs written subsequent to the IPO are not covered by XL’s guarantees to subsidiaries of SCA. As previously reported the Company has reduced the reported value of its investment in SCA from $117 million to zero.Pursuant to a transition agreement entered into at the time of the IPO, SCA is permitted to use the "XL" name until August 2008. XL owns approximately 46% of the common equity interest of SCA.As Fitch’s actions relate to SCA and its operating subsidiaries, any questions regarding this matter should be referred directly to SCA.Further information regarding XL's relationship with SCA may be found in XL's Form 10-K (and 10-K/A) for the year ended December 31, 2007 on file with the Securities and Exchange Commission as well as the Investor Relations section of the Company’s website located at www.xlgroup.com.XL Capital Ltd, through its operating subsidiaries, is a leading provider of global insurance and reinsurance coverages to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. As of December 31, 2007, XL Capital Ltd had consolidated assets of $57.8 billion and consolidated shareholders’ equity of $9.9 billion. More information about XL Capital Ltd is available at www.xlgroup.com.
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