XL Capital Ltd Issues Statement In Response To Market Rumors
London, UK - December 10, 2008
Hamilton, Bermuda, December 10, 2008 – While it is generally not XL Capital Group Ltd's (the “Company”)(NYSE: XL) policy to comment on market rumors, the Company believes in the current circumstances it is appropriate to do so.The Company remains focused on operating its business and meeting the needs of its customers and is committed to taking actions as necessary to maximize value for its shareholders. In that regard, as can be expected in the current environment, the Company is continuing to explore value-enhancing opportunities available to it and is being assisted in that effort by one of its long-standing financial advisors, Goldman, Sachs & Co.Based upon the most recently available information, the Company anticipates that the estimated mark-to-market decline on its investment portfolio (comprised of changes in unrealized losses, other than temporary impairments and realized losses on securities sales) due to changes in credit spreads and interest rates since the end of the third quarter of 2008 to date would be largely in line with that reported for the third quarter of 2008. The Company notes that future market movements will occur between now and the end of the fourth quarter of 2008, and such movements will affect the mark-to-market on the investment portfolio that the Company will report for the fourth quarter of 2008.In addition the Company estimates that it will report approximately $200 to $220 million in net investment fund affiliate losses from its alternative investment portfolio for the fourth quarter of 2008 (covering September, October and November).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. More information about XL Capital Ltd is available at www.xlgroup.com.# # #This press release contains forward-looking statements. Such statements involve inherent risks and uncertainties. Statements that are not historical facts, including statements about XL’s beliefs 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 events or results to differ materially from those in such forward-looking statements include the preliminary nature of the financial estimates set forth above and the other important factors set forth in XL’s most recent annual report on Form 10-K, quarterly report on Form 10-Q and XL's other documents on file with the Securities and Exchange Commission. XL undertakes no bligation to update or revise publicly any forward-looking statement, whether as a result of new information, future developments or otherwise.
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