Product Family
Net Income $239.9 million, or $1.74 per ordinary shareNet Operating Income $250.1 million, or $1.82 per ordinaryshare

HAMILTON, BERMUDA, April 28, 2003 -- XL Capital Ltd(“XL” or the “Company”) (NYSE:XL) today reported net income available to ordinaryshareholders for the quarter ended March 31, 2003 of$239.9 million, or net income of $1.74 per ordinaryshare, compared with net income of $89.5 million, ora net income of $0.65 per ordinary share, in the firstquarter of 2002. Net operating income for the firstquarter of 2003 was $250.1 million, or $1.82 per ordinaryshare, compared with net operating income of $207.6million, or $1.51 per ordinary share, for the quarterended March 31, 2002 (see below for a reconciliationto net income).

Commenting on the first quarter 2003 results, BrianM. O’Hara, President and Chief Executive Officerof XL, stated: “We had a very strong first quarterwith excellent underwriting results reflected in ourcombined ratio of 86.1% and net earned premium growthof 42% in our general insurance and reinsurance operations.Our net operating income return on ordinary shareholders’equity exceeded 16% and book value per ordinary shareincreased to $46.09, a record level for XL.”

“Our general insurance and reinsurance businessescontinue to see very strong pricing, most notably incasualty, professional lines and marine worldwide,”said Mr. O'Hara.

Mr. O’Hara further stated, “Despite ourvery robust underwriting results and strong cash flowduring the quarter, the investment environment continuesto be challenging with reinvestment rates at extremelylow levels. This will continue to put pressure on industryresults and underscores the need to maintain underwritingdiscipline in the market.”

The first quarter 2003 net operating results includea write down of the Company’s investment in Annuityand Life Re Holdings Ltd of $40.9 million.

Total assets as of March 31, 2003 were $37.5 billioncompared with $35.6 billion as of December 31, 2002.Book value per ordinary share as at March 31, 2003 increasedto $46.09 compared with $44.48 as at December 31, 2002.

Summary unaudited consolidated financial data for thequarters ended March 31, 2003 and 2002, respectively,are set forth below (in millions, except per share andshare amounts):

                                                  Three months ended                March 31              (Unaudited)                                2003            2002Gross premiums written        $ 3,147         $ 2,805Net premiums written            2,489           2,159Net premiums earned             1,552           1,065Net income                    $ 250.0          $ 89.5Preference dividend            (10.1)              --Net income available to ordinary shareholders     $ 239.9          $ 89.5Per ordinary share results:Net income available to ordinary shareholders      $ 1.74           $0.65Weighted average ordinary  shares outstanding (in thousands):Basic                         136,216          135,119Diluted                       137,631          137,843

Gross premiums written for general operations in thefirst quarter of 2003 were $3.0 billion compared with$2.8 billion in the first quarter of 2002. Net premiumswritten increased to $2.4 billion from $2.1 billionand net earned premiums rose to $1.5 billion from $1.0billion in the respective quarters of 2003 and 2002.

Gross premiums written for life operations in the firstquarter of 2003 were $111.3 million compared with $38.5million in the first quarter of 2002. Net premiums writtenfor life operations in the first quarter of 2003 were$97.3 million compared with $37.0 million in the firstquarter of 2002 and net earned premiums were $92.8 millionin the first quarter of 2003 compared with $39.2 millionin the first quarter of 2002.

Net investment income from general operations was $156.6million in the first quarter of 2003, compared with$155.6 million in 2002's first quarter. Net investmentincome from life operations was $35.3 million in thefirst quarter of 2003 compared with $15.5 million forthe quarter ended March 31, 2002.

The Company's equity in the net income of its investmentaffiliates for the first quarter of 2003 was $26.8 millionversus $32.2 million in the first quarter of 2002. TheCompany's equity in net losses of its insurance andoperating affiliates was $41.1 million in the firstquarter of 2003 versus net income of $0.03 million inthe first quarter of 2002.

The combined ratio for the Company's general insuranceand reinsurance operations was 86.1% in the first quarterof 2003, versus 92.1% in the first quarter of 2002.The loss ratios were 60.9% and 63.2% in the quartersended March 31, 2003 and 2002, with corresponding expenseratios of 25.2% and 28.9% for the same quarters, respectively.

A live on-line web cast of XL's call with analystsand investors to review the first quarter 2003 resultswill be held at 10:00 a.m. Eastern Time on April 29,2003 at unaudited financial information supplement relatingto the Company's 2003 and 2002 quarterly and full yearresults is available on its website:

XL Capital Ltd, through its operating subsidiaries,is a leading provider of insurance and reinsurance coveragesand financial products and services to industrial, commercialand professional service firms, insurance companiesand other enterprises on a worldwide basis.

This press release contains forward-looking statementsthat involve inherent risks and uncertainties. Statementsthat are not historical facts, including statementsabout XL's beliefs, plans or expectations, are forward-looking statements. These statements are based on currentplans, estimates, and expectations. Actual results maydiffer materially from those projected in such forward-lookingstatements and therefore you should not place unduereliance on them. A non-exclusive list of the importantfactors that could cause actual results to differ materiallyfrom those in such forward-looking statements includesthe following: (a) rate increases and improvements interms and conditions may not be as large or sustainableas XL is currently projecting; (b) greater frequencyor severity of claims and loss activity, including asa result of natural or man-made catastrophic events,than XL's underwriting, reserving or investment practicesanticipate based on historical experience or industrydata; (c) developments in the world's financial andcapital markets which adversely affect the performanceof XL's investments and XL's access to such markets;(d) changes in general economic conditions, includingforeign currency exchange rates, inflation and otherfactors; and (e) the other factors set forth in XL'smost recent reports on Form 10-K and Form 10-Q as wellas XL's other documents on file with the Securitiesand Exchange Commission. XL undertakes no obligationto update publicly or revise any forward-looking statement,whether as a result of new information, future developmentsor otherwise.

                                                    XL Capital Ltd               SUMMARY CONSOLIDATED FINANCIAL DATA            (In thousands of U.S. dollars, except per                    share and share amounts)                        (Unaudited)                        Three Months Ended                            March 31                              2003          2002 (a)Income Statement Data:Revenues:Gross premiums written - general and life operations           $3,147,139      $2,804,676Net premiums written - general and life operations            2,489,084       2,158,853Net premiums earned - general operations         1,458,860       1,025,522Net premiums earned - life operations               92,771          39,193Net investment income - general operations           156,581         155,609Net investment income - life operations               35,323          15,518Net realized losses on investments               (4,663)        (106,020)Net realized and unrealized gains (losses) on derivative instruments                   14,493          (9,476)Equity in net income of investment affiliates         26,798           32,185Fee and other income           12,277            7,949                             $1,792,440     $1,160,480Expenses:Net losses and loss expenses incurred - general operations          $885,254         $642,298Claims and policy benefit reserves - life operations   119,558           47,763Acquisition costs And operating expenses       430,831          330,877Exchange gains                (2,702)           (8,364)Interest expense               46,140           41,622Amortization of intangible assets                           375              614                           $1,479,456        $1,054,810Income before minority interest, income tax expense and equity in net loss (income) of insurance and operating affiliates                  $312,984          $105,670Minority interest               1,862             2,255Income tax charge              20,030            13,954Equity in net loss (income) of insurance and operating affiliates                    41,087              (32)Net income                   $250,005            $89,493Preference dividend          (10,148)                  -Net income available to ordinary shareholders       $239,857            $89,493Weighted average number of ordinary shares and ordinary share equivalents (in thousands) : Basic       136,216            135,119                : Diluted     137,631            137,843Per Share Data:Net income available to ordinary shareholders (diluted)                     $ 1.74              $0.65


Certain reclassifications, which have no effect onnet income, have been made to prior period results toconform to current presentation.

               XL Capital Ltd         SUPPLEMENTAL FINANCIAL DATA      (in millions of U.S. Dollars, except          per share and share amounts)                (Unaudited)

The following is a reconciliation of the Company'snet operating income to net income, for the three monthsended March 31, 2003 and 2002:

                       Three months ended                            March 31                           (Unaudited)                               2003              2002Net income available to  ordinary shareholders       $ 239.9           $ 89.5Net realized losses on investments                      4.6            106.0Net realized and unrealized (gains) losses on derivatives                (14.5)              9.5Net gains on weather & energy risk management derivatives                     10.4              0.9Tax effect on net realized losses on investments and realized and unrealized(gains) losses on derivative instruments           9.7              1.7Net operating income           $250.1           $207.6Per ordinary share results:Net income available to ordinary shareholders (diluted)                      $1.74            $0.65Net operating income (diluted)  $1.82            $1.51Weighted average ordinary shares outstanding (in millions):Basic                           136.2            135.1Diluted                         137.6            137.8

Net operating income is a non-GAAP measure. As calculatedby the Company, net operating income is net income availableto ordinary shareholders, excluding net realized gainsand losses on investments and net realized and unrealizedgains and losses on all derivatives (except for gainsand losses on weather and energy risk management derivatives).These items are excluded because they are not consideredby management to be relevant indicators of the performanceof or trends in XL's core business operations, but ratherof the investment and credit markets in general. Managementbelieves that the presentation of net operating incomeprovides useful information regarding XL's results ofoperations because it follows industry practice, isfollowed closely by securities analysts and rating agencies,and enables investors and securities analysts to makeperformance comparisons with XL's peers in the insuranceindustry. This measure may not, however, be comparableto similarly titled measures used by companies outsideof the insurance industry. Investors are cautioned notto place undue reliance on net operating income as anon-GAAP measure in assessing XL's overall financialperformance.

                                                    XL Capital Ltd           SUMMARY CONSOLIDATED FINANCIAL DATA          (In thousands of U.S. dollars, except               per share and share amounts)                    (Unaudited)                     As at March 31,   As at December 31,                          2003               2002Balance Sheet Data:Total investments  available for sale       $17,207,273      $16,059,733Net payable for investments purchased      1,668,469        1,546,276Cash and cash equivalents   3,152,328        3,557,815Investments in affiliates   1,729,593        1,750,005Intangible assets           1,652,998        1,653,700Total assets               37,461,625       35,647,369Unpaid losses and loss expenses                  13,496,875       13,202,736Deposit liabilities and future policy benefit reserves                   4,980,912        4,889,996Notes payable and debt      1,884,158        1,877,957Total shareholders' equity                     6,812,245        6,569,589Total ordinary shareholders' equity (1)   6,294,745        6,052,089Ordinary shares outstanding              136,560,490      136,063,184Book value per ordinary share                $46.09           $44.48Note:(1) Excluding preference share capital of $517,500.