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HAMILTON, BERMUDA, April 29, 2002 -- XL Capital Ltd ("XL" or the "Company") (NYSE: XL) today reported that net income for the first quarter ended March 31, 2002 was $89.5 million, or $0.65 per share, compared with $218.9 million, or $1.73 per share, in the first quarter of 2001. Net operating income for the first quarter of 2002 was $210.4 million, or $1.53 per share, compared with $156.7 million, or $1.24 per share, for the quarter ended March 31, 2001.

Results for the quarter ended March 31, 2002 include the results of Winterthur International, which was acquired with effect from July 1, 2001. They also include the results of Le Mans R, which is accounted for as a consolidated subsidiary with effect from January 1, 2002. In the quarter ended March 31, 2001, the Company's share of the net income of Le Mans R was included in equity in net income of insurance affiliates. Results of the Company's Lloyd's operations are included in the insurance segment, and are no longer shown separately. Summary unaudited consolidated financial data for the three months ended March 31 for each of 2002 and 2001 is set forth below (in millions except per share amounts):

                                            Three months ended March 31                                                     (unaudited)                                             2002                  2001Gross premiums written                      $2,850.2            $1,150.8Net premiums written                         2,204.4               812.3Net premiums earned                          1,072.1               542.2Total revenue                                1,165.1               772.9Net income                                      89.5               218.9Net operating income (a)                       210.4               156.7Per share results:Net income                                      $0.65               $1.73Net operating income (a)                         1.53                1.24Average shares outstanding (b)                 137.8               126.8Notes:               (a) Net operating income is net income excluding net                  realized gains and losses on investments and net                  realized and unrealized gains and losses on                  derivatives, net of tax.              (b) Diluted weighted average number of shares.

Total assets as of March 31, 2002 were $30.6 billion, compared with $28.0 billion as of December 31, 2001. Fully diluted book value per share as at March 31, 2002 was $40.94 compared with $40.35 as at December 31, 2001.

Net investment income from general operations was $155.6 million in the first quarter of 2002, compared with $143.1 million in 2001's first quarter. Net realized losses on investments and net realized and unrealized losses on derivatives in the first quarter of 2002 was $119.2 million compared with net realized gains of $60.2 million in 2001's first quarter. The Company's equity in the net income of its investment affiliates for the first quarter of 2002 was $32.2 million in 2002 versus $20.4 million in the first quarter of 2001. The Company's equity in the net income of its insurance affiliates was breakeven in the first quarter of 2002 versus $8.0 million in the first quarter of 2001.

The combined ratio for the Company's general insurance and reinsurance operations was 92.0% in the first quarter of 2002 compared with 93.9% in the first quarter of 2001. The loss ratios were 63.2% and 61.3% in the first quarters of 2002 and 2001, respectively, with corresponding expense ratios of 28.8% and 32.6% for the same quarters, respectively.

Commenting on the first quarter results, Brian M. O'Hara, President and Chief Executive Officer of XL, stated, "Our first quarter results reflect the strong growth and improved market conditions that we continue to see in all segments of the Company. Additionally, we have benefited from a flight to quality and from new premiums from the inclusion of XL Winterthur International and Le Mans R in the first quarter."

A live on-line webcast of a call with analyst and investors will be held at 10:00 a.m. Eastern Time on Tuesday, April 30, 2002 to review the first quarter 2002 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 is 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 sustainable 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 payments 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 government-sponsored 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 that could have an adverse effect on the company's ratings; (l) changes in accounting policies or practices that could adversely effect the Company's financial statutory and other statements and reports; (m) legislative, tax or regulatory developments that could adversely effect the company or the ability of customers or brokers to do business with the Company; (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.

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(tables to follow)

                                XL Capital Ltd                     SUMMARY CONSOLIDATED FINANCIAL DATA                   (In thousands, except per share amounts)                                                         Three Months Ended                                                              March 31                                                            (Unaudited)                                                        2002           2001    Income Statement Data:    Revenues:     Gross premiums written                       $2,850,199     $1,150,845     Net premiums written                         $2,204,376       $812,254     Net premiums earned - general operations     $1,032,953       $542,154     Net premiums earned - life operations            39,193             --     Net investment income - general operations      155,609        143,096     Net investment income - life operations          15,518             --     Equity in net income of investment affiliates    32,185         20,374     Net realized (losses) gains on investments    (106,020)         62,535     Net realized and unrealized losses on      derivative instruments                        (13,200)        (2,364)     Fee and other income                              8,868          7,069                                                 $ 1,165,106       $772,864    Expenses:     Net losses and loss expenses      incurred - general operations                 $646,924       $330,204     Claims and policy benefit      reserves - life operations                      47,763             --     Acquisition costs, operating expenses,      and exchange gains and losses                  322,513        197,760     Interest expense                                 41,622         21,257     Amortization of intangible assets                   614         14,468                                                  $1,059,436       $563,689    Income before minority interest,     income tax expense and equity in net      income of insurance affiliates                $105,670       $209,175    Net income                                       $89,493       $218,929    Weighted average number of ordinary shares and   137,843        126,782     ordinary share equivalents (diluted)    Per Share Data:     Net income                                        $0.65          $1.73     Net losses (gains) on investments and      derivative instruments, after tax                 0.88         (0.49)     Net operating income                              $1.53          $1.24    Note: Certain reclassifications, which have no effect on net income, have    been made to prior year results to conform to current presentation.                                XL Capital Ltd                     SUMMARY CONSOLIDATED FINANCIAL DATA           (In thousands of U.S. dollars, except per share amounts)                                 (Unaudited)                                         As at March 31,  As at December 31,                                                   2002                2001    Balance Sheet Data:    Total investments available for sale    $12,833,601         $12,429,845    Net payable for investments purchased     1,483,177           1,247,027    Cash and cash equivalents                 2,066,413           1,863,861    Investments in affiliates                 1,162,725           1,037,344    Intangible assets                         1,677,597           1,616,943    Total assets                             30,665,266          27,963,075    Unpaid losses and loss expenses          12,275,728          11,825,680    Deposit liabilities and policy benefit     reserves                                 2,409,481           2,374,164    Notes payable and debt                    1,857,670           1,604,877    Shareholders' equity                      5,450,064           5,437,184    Fully diluted book value per share           $40.94             $ 40.35                                XL Capital Ltd                      SUPPLEMENTARY SEGMENT INFORMATION                        (In thousands of U.S. dollars)                                 (Unaudited)                     FOR THE QUARTER ENDED MARCH 31, 2002                                   Total                 Financial                                Insurance &              Products &                      Insurance Reinsurance Reinsurance  Services    Total    General operations:    Net premiums     earned            $592,656   $421,167  $1,013,823   $19,130  $1,032,953    Fee income and     other                6,545        899       7,444     1,422       8,866    Net losses and     loss expenses      376,380    264,632     641,012     5,912     646,924    Acquisition costs    91,965     92,214     184,179       958     185,137    Operating expenses   88,973     18,686     107,659    14,990     122,649    Exchange gains      (2,112)    (6,252)     (8,364)        --     (8,364)    Underwriting     profit (loss)      $43,995    $52,786     $96,781  $(1,308)     $95,473    Life operations:    Net premiums earned     $--    $39,193     $39,193       $--     $39,193    Fee income and other     --          2           2        --           2    Claims and policy     benefit reserves        --     47,763      47,763        --      47,763    Acquisition costs and     operating expenses      --      1,678       1,678        --       1,678    Net investment income    --     15,518      15,518        --      15,518    Net realized losses     on investments          --        618         618        --         618    Net income from life     operations             $--     $4,654      $4,654       $--      $4,654    Net investment income                                            155,609    Net realized losses on     investments and      derivative instruments                                         118,602    Equity in earnings of     insurance and   investment      affiliates                                                      32,217    Corporate, interest,     taxes and other                                                  79,858    Net income                                                       $89,493    Loss and loss expense     ratio                63.5%      62.8%       63.2%    Underwriting expense     ratio                30.5%      26.3%       28.8%    Combined ratio        94.0%      89.1%       92.0%    NOTES:    1. Ratios are calculated for general insurance and reinsurance operations        based on net premiums earned, excluding fee income and other.    2. The underwriting expense ratio excludes exchange gains and losses.                                XL Capital Ltd                      SUPPLEMENTARY SEGMENT INFORMATION                        (In thousands of U.S. dollars)                                 (Unaudited)                     FOR THE QUARTER ENDED MARCH 31, 2001                                   Total                 Financial                                Insurance &              Products &                      Insurance Reinsurance Reinsurance  Services    Total    General operations:    Net premiums     earned            $269,473   $266,860    $536,333    $5,821    $542,154    Fee income and     other                2,625      (563)       2,062     5,007       7,069    Net losses and     loss expenses      160,131    168,458     328,589     1,615     330,204    Acquisition costs    55,951     69,600     125,551       321     125,872    Operating expenses   32,787     16,706      49,493    11,357      60,850    Exchange (gains)     losses             (1,382)        212     (1,170)        --     (1,170)    Underwriting     profit (loss)      $24,611    $11,321     $35,932  $(2,465)     $33,467    Net investment     income                                                          143,096    Net realized gains     on investments and      derivative       instruments                                                    60,171    Equity in earnings of     insurance and      investment       affiliates                                                     28,388    Corporate, interest,     taxes and other                                                  46,193    Net income                                                      $218,929    Loss and loss     expense ratio        59.4%      63.1%       61.3%    Underwriting expense     ratio                32.9%      32.4%       32.6%    Combined ratio        92.3%      95.5%       93.9%    NOTES:    1. Ratios are calculated for general insurance and reinsurance operations       based on net premiums earned, excluding fee income and other.    2. The underwriting expense ratio excludes exchange gains and losses.                                XL Capital Ltd            SUPPLEMENTARY PREMIUM INFORMATION BY LINE OF BUSINESS                        (In thousands of U.S. dollars)                                 (Unaudited)                     FOR THE QUARTER ENDED MARCH 31, 2002                             Gross Premiums    Net Premiums  Net Premiums                                    Written         Written        Earned    Casualty insurance             $495,236        $365,476      $236,868    Casualty reinsurance            450,329         376,442       159,845    Property catastrophe            197,746         177,402        60,325    Other property                  579,257         379,764       229,785    Marine, energy, aviation     and satellite                  297,870         226,257       103,787    Lloyd's syndicates              333,725         263,814       120,362    Accident and health             127,906         104,977        19,658    Financial products & services    71,796          69,185        19,130    Life                             38,528          36,968        39,193    Other insurance                 125,599          98,740        57,059    Other reinsurance               132,207         105,351        26,134    Total                        $2,850,199      $2,204,376    $1,072,146                       FOR THE QUARTER ENDED MARCH 31, 2001                             Gross Premiums    Net Premiums  Net Premiums                                    Written         Written        Earned    Casualty insurance             $189,187        $111,709       $85,008    Casualty reinsurance            171,390         123,045        71,389    Property catastrophe            102,158          97,842        36,822    Other property                  177,546         126,893        94,331    Marine, energy, aviation     and satellite                  177,577         115,408        61,822    Lloyd's syndicates              216,996         134,540        92,159    Financial products & services    11,989          11,933         5,821    Other insurance                  66,687          42,654        33,579    Other reinsurance                37,315          48,230        61,223    Total                        $1,150,845        $812,254      $542,154    NOTES:    1. The Companies Lloyd's Syndicates write a variety of coverages       encompassing most of the above lines of business.    2. Other premiums written and earned includes political risk, surety,       bonding, and warranty lines.                                XL Capital Ltd                   XL Capital Ltd SUPPLEMENTARY INFORMATION                (In thousands of U.S. dollar except % changes)                                 (Unaudited)    Consolidated              First Quarter   First Quarter      % Change                                       2002            2001    Net Income                        $89.5          $218.9       (59.1%)    Operating Income                  210.4           156.7         34.3%    Net Income per share               0.65            1.73       (62.4%)    Operating Income per share         1.53            1.24         23.4%    Avg. number of shares     outstanding                      137.8           126.8          8.7%    General Operations        First Quarter   First Quarter      % Change                                       2002            2001    Gross premiums written         $2,811.7        $1,150.8        144.3%    Net premiums written            2,167.4           812.3        166.8%    Net premiums earned             1,033.0           542.2         90.5%    Underwriting profit                95.5            33.5        185.1%    Combined ratio                    92.0%           93.9%    Net investment income             155.6           143.1          8.7%    Life Operations    Gross premiums written             38.5            $ --           N/A    Net premiums written               37.0              --           N/A    Net premiums earned                39.2              --           N/A    Claims and policy benefit     reserves                          47.8              --           N/A    Net income from life operations     4.6              --           N/A    Net investment income              15.5              --           N/A    Note:    The supplementary information contained herein is being furnished for the    convenience of the reader only, and does not purport to be complete.    Percentage changes are based upon the rounded numbers shown above.    Investors should refer to XL Capital Ltd's Form 10-Q for the quarter ended    March 31, 2002 to be filed with the SEC (and XL Capital Ltd's other    documents on file with the SEC) for a complete description of XL Capital Group    Ltd.                                XL Capital Ltd                   XL Capital Ltd SUPPLEMENTARY INFORMATION                (In thousands of U.S. dollar except % changes)                                 (Unaudited)                              GENERAL OPERATIONS    Insurance Segment         First Quarter   First Quarter      % Change                                       2002            2001    Gross premiums written         $1,450.4          $571.2        153.9%    Net premiums written            1,051.9           342.2        207.4%    Net premiums earned               592.7           269.5        119.9%    Fee income                          6.5             2.6        150.0%    Underwriting profit                44.0            24.6         78.9%    Loss ratio                        63.5%           59.4%    Expense ratio                     30.5%           32.9%    Combined ratio                    94.0%           92.3%    Reinsurance Segment       First Quarter   First Quarter      % Change                                       2002            2001    Gross premiums written         $1,289.5          $567.6        127.2%    Net premiums written            1,046.4           458.1        128.4%    Net premiums earned               421.2           266.9         57.8%    Fee income                          1.0           (0.6)           n/m    Underwriting profit                52.8            11.3        367.3%    Loss ratio                        62.8%           63.1%    Expense ratio                     26.3%           32.4%    Combined ratio                    89.1%           95.5%    Financial Products and     Services Segment         First Quarter   First Quarter      % Change                                       2002            2001    Gross premiums written            $71.8           $12.0        498.3%    Net premiums written               69.2            11.9        481.5%    Net premiums earned                19.1             5.8        229.3%    Fee income                          1.4             5.0       (72.0%)    Underwriting loss                 (1.3)           (2.5)         48.0%

Notes: The supplementary information contained herein is being furnished for the convenience of the reader only, and does not purport to be complete. Percentage changes are based upon the rounded numbers shown above. Investors should refer to XL Capital Ltd's Form 10-Q for the quarter ended March 31, 2002 to be filed with the SEC (and XL Capital Ltd's other documents on file with the SEC) for a complete description of XL Capital Ltd.

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