XL Capital Ltd to Redeem Series B Preference Shares

HAMILTON, BERMUDA - October 12, 2007

Hamilton, Bermuda – October 12, 2007 - XL Capital Ltd (NYSE: XL) announced today that it has called for redemption all of its outstanding 7 5/8% Series B Preference Ordinary Shares (the “Series B Preference Shares”). The redemption date for the Series B Preference Shares will be November 19, 2007, and the redemption price will be approximately $25.26 per Series B Preference Share. The aggregate redemption price for all outstanding Series B Preference Shares will be $290,483,810.76.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 June 30, 2007, XL Capital Ltd had consolidated assets of $60.2 billion and consolidated shareholders’ equity of $11.5 billion. More information about XL Capital Ltd is available at www.xlgroup.com.