Press Center

XL Capital Ltd reports second quarter 2002 results

 —
Net Operating Income Per Share $0.18 in 2002 Compared With $1.25 in 2001

HAMILTON, BERMUDA, July 30, 2002 -- XL Capital Ltd ("XL" or the "Company") (NYSE: XL) today reported a net loss for the quarter ended June 30, 2002 of $91.7 million, or a loss of $0.68 per share, compared with net income of $128.6 million, or income of $1.01 per share, in the second quarter of 2001. Net operating income for the second quarter of 2002 was $25.0 million, or $0.18 per share, compared with $160.1 million, or $1.25 per share, for the quarter ended June 30, 2001.

The Company's 2002 second quarter results reflect previously announced additional pre-tax net incurred losses of $200.0 million stemming from the attack on the World Trade Center and related events ("WTC"). The Company also realized net losses on investments of $110.0 million for the second quarter, which losses were also pre-announced, including $92.5 million related to WorldCom, Adelphia and other telecommunication companies.

For the six months ended June 30, 2002, the net loss was $2.3 million, or a loss of $0.02 per share, compared with net income of $347.5 million, or $2.72 per share, during the same period in 2001. Net operating income for the first six months of 2002 was $235.4 million, or $1.71 per share, compared with $316.8 million, or $2.48 per share, for the six months ended June 30, 2001.

Summary unaudited consolidated financial data for the three and six months ended June 30, for each of 2002 and 2001, respectively, is set forth below (in millions except per share amounts):

                  Three months ended June 30   Six months ended June 30
                           (Unaudited)                  (Unaudited)
                         2002         2001            2002        2001
Gross premiums written $ 1,546.9    $ 1,005.8       $ 4,397.1   $ 2,156.7
Net premiums written     1,147.4        749.2         3,351.7     1,561.4
Net premiums earned      1,078.7        641.0         2,150.8     1,183.1
Net (loss) income          (91.7)       128.6            (2.3)      347.5
Net operating income (a)    25.0        160.1           235.4       316.8
                                
Per share results:                              
Net (loss) income (b)     $ (0.68)      $ 1.01         $ (0.02)     $ 2.72
Net operating income (a)     0.18         1.25            1.71        2.48
                                
Average shares outstanding :                            
Basic (b)                   135.7       125.4           135.4       125.3
Fully diluted (b)           138.2       127.8           137.7       127.5

Notes:
(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) Average stock options outstanding have been excluded where 
anti-dilutive to earnings per share. Consequently, where there is a 
net loss, basic shares outstanding represents fully diluted shares 
outstanding.

Commenting on the second quarter results, Brian M. O'Hara, President and Chief Executive Officer of XL, stated, "The Company enjoyed strong premium growth in the second quarter with net premiums written, the pipeline of future earnings, increasing by 53%. While the need to increase loss reserves caused by the World Trade Center tragedy was disappointing, we believe that this addition to reserves should fully address our losses from this unprecedented event."

"I am pleased to note that our underlying net operating income in the second quarter, excluding the WTC reserve charge, was slightly above expectations. Now we look forward to capitalizing on the improving property and casualty market through long overdue price increases and improvements in terms currently being achieved in virtually all lines of business," Mr. O'Hara concluded.

Results for the quarter and six months ended June 30, 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 and six months ended June 30, 2001, the Company's share of the net income of Le Mans R was included in equity in net income of insurance and other operating affiliates. Results of the Company's Lloyd's operations are included in the insurance segment, and are no longer shown separately.

Total assets as of June 30, 2002 were $31.2 billion, compared with $28.0 billion as of December 31, 2001. Fully diluted book value per share as at June 30, 2002 was $39.60 compared with $40.35 as at December 31, 2001.

Gross premiums written in the second quarter of 2002 were $1.5 billion up from $1.0 billion in the second quarter of 2001. Net premiums written increased to $1.1 billion from $749.2 million and net earned premiums rose to $1.1 billion from $641.0 million in the respective periods of 2002 and 2001. For six months, gross premiums written were $4.4 billion in the second quarter of 2002 compared with $2.2 billion in the year ago period. Net premiums written for the first six months of 2002 were $3.4 billion compared to $1.6 billion a year ago. Net earned premiums were $2.2 billion for the first six months of 2002 compared with $1.2 billion in the first six months of 2001.

Net investment income from general operations was $157.9 million in the second quarter of 2002, compared with $151.2 million in 2001's second quarter. Net investment income from general operations was $313.5 million in the first six months of 2002, compared with $294.3 million in 2001's first six months.

The Company's equity in the net income of its investment affiliates for the second quarter of 2002 was $7.9 million in 2002 versus $23.2 million in the second quarter of 2001. The Company's equity in the net income of its insurance and other operating affiliates was $0.4 million in the second quarter of 2002 versus $6.3 million in the second quarter of 2001. The Company's equity in the net income of its investment affiliates for the first six months of 2002 was $40.1 million versus $43.6 million in the first half of 2001. The Company's equity in the net income of its insurance and other operating affiliates was $0.4 million for the first six months of 2002 versus $14.3 million in the first six months of 2001.

The combined ratio for the Company's general insurance and reinsurance operations was 109.9% in the second quarter of 2002 compared with 92.3% in the second quarter of 2001. The loss ratios were 80.2% and 60.9% in the second quarters of 2002 and 2001, respectively, with corresponding expense ratios of 29.7% and 31.4% for the same quarters, respectively. The combined ratio for the Company's general insurance and reinsurance operations was 101.0% in the first six months of 2002 compared with 93.1% in the first six months of 2001. The loss ratios were 71.8% and 61.1% in the first six months of 2002 and 2001, respectively, with corresponding expense ratios of 29.2% and 32.0% for the same periods.

A live online webcast of a call with analysts and investors will be held at 10:00 a.m. Eastern Time on Wednesday, July 31, 2002 to review the second 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 and services to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. An additional unaudited financial supplement relating to the Company's 2002 and 2001 quarterly and year to date results 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 significant or sustainable as XL is currently projecting; (b) actual or projected claims against XL 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 Adelphia, Enron or WorldCom (or other companies that file for bankruptcy protection) bankruptcy proceedings or other developments related to such companies; (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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                                 XL Capital Ltd
                       SUMMARY CONSOLIDATED FINANCIAL DATA
                     (In thousands, except per share amounts)

                                 Three Months Ended        Six Months Ended
                                     June 30                    June 30
                                   (Unaudited)                (Unaudited)
                                 2002       2001            2002     2001
    Income Statement Data:

    Revenues:
     Gross premiums written   1,546,948  $1,005,847    $4,397,147   $2,156,692
     Net premiums written     1,147,351     749,152     3,351,727    1,561,406

     Net premiums earned - general
      operations             $1,068,160    $640,984    $2,101,113   1,183,138
     Net premiums earned - life
      operations                 10,497          --        49,690          --
     Net investment income -
      general operations        157,918     151,168       313,527     294,264
     Net investment income - life
      operations                 16,825          --        32,343          --
     Equity in net income of
       investment affiliates      7,931      23,196        40,116      43,570
     Net realized (losses) gains on
       investments             (110,002)    (36,098)     (216,022)     26,437
    Net realized and unrealized
     (losses) gains on derivative
      instruments                (6,713)      5,026       (19,913)      2,662
     Fee and other income        23,452      11,493        32,320      18,562
                             $1,168,068    $795,769    $2,333,174  $1,568,633

    Expenses:
    Net losses and loss expenses
     incurred - general operations $844,627   $386,951  $1,491,551   $717,155
    Claims and policy benefit
     reserves - life operations      18,816         --      66,579         --
    Acquisition costs, operating
     expenses, and exchange gains
     and losses                     331,960     232,708    654,473    430,468
    Interest expense                 40,139      26,168     81,761     47,425
    Amortization of intangible
     assets                              11      14,703        625     29,171
                                 $1,235,553    $660,530 $2,294,989  1,224,219

    (Loss) income before minority
     interest, income tax expense
     and equity in net income of
     insurance and other operating
     affiliates                    $(67,485)   $135,239    $38,185   $344,414

    Net (loss) income              $(91,748)   $128,606    $(2,255)  $347,535

    Weighted average number of
     ordinary shares and
     ordinary share equivalents
          :Basic                    135,662     125,396    135,431    125,312
          : Diluted                 138,231     127,765    137,743    127,546

    Per Share Data:
     Net (loss) income               $(0.68)     $ 1.01    $ (0.02)     $2.72
     Net losses (gains) on
      investments and derivative
      instruments, after tax           0.86        0.24       1.73      (0.24)
     Net operating income             $0.18       $1.25      $1.71      $2.48

    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          As at
                                 June 30,      December  31
                                  2002            2001

    Balance Sheet Data:

    Total investments available
     for sale                   $13,466,320    $12,429,845

    Net payable for investments
     purchased                    1,453,400      1,247,027


    Cash and cash equivalents     2,278,754      1,863,861

    Investments in affiliates     1,234,174      1,037,344

    Intangible assets             1,648,475      1,616,943

    Total assets                 31,189,265     27,963,075

    Unpaid losses and loss
     expenses                    12,396,503     11,825,680

    Deposit liabilities and
     policy benefit reserves      2,828,755      2,374,164

    Notes payable and debt        1,863,816      1,604,877

    Shareholders' equity          5,375,531      5,437,184

    Fully diluted book value per
     share                           $39.60         $40.35


                                XL Capital Ltd

                      SUPPLEMENTARY SEGMENT INFORMATION
                        (In thousands of U.S. dollars)
                                 (Unaudited)
                     FOR THE QUARTER ENDED JUNE 30, 2002

                                           Total        Financial
    General                              Insurance &    Products &
     operations: Insurance  Reinsurance  Reinsurance    Services     Total
    Net premiums
     earned      $549,776     $495,300    $1,045,07      $23,084  $1,068,160
    Fee income
     and other     10,886        8,506       19,392        4,060      23,452

    Net losses
     and loss
     expenses     410,397      427,561      837,958        6,669     844,627
    Acquisition
     costs         67,644      100,295      167,939        5,045      172,98
    Operating
     expenses     111,241       31,021      142,262       12,312     154,574
    Exchange
     gains         22,181        1,025       23,206           --      23,206

    Underwriting
     (loss)
     profit       $(6,439)    $(54,046)    $(60,485)      $3,118    $(57,367)

    Life operations:
    Net premiums
     earned          $ --      $10,497      $10,497          $--     $10,497
    Fee income
     and other         --           --           --           --          --

    Claims and
     policy
     benefit
     reserves          --       18,816       18,816           --      18,816
    Acquisition
     costs and
     operating
     expenses          --        2,467        2,467           --       2,467

    Net investment
     income            --       16,825       16,825           --      16,825

    Net income
     from life
     operations       $--       $6,039       $6,039          $--      $6,039


    Net investment
     income                                                         $157,918

    Net realized and
     unrealized losses on
     investments and
     derivative instruments                                         (116,715)
    Equity in earnings of
     insurance, other
     operating and
     investment affiliates                                             8,347
    Corporate, interest,
     taxes and other                                                 (89,970)
    Net loss                                                       $ (91,748)

    Loss and
     loss expense
     ratio (1)       74.6%        86.3%        80.2%
    Underwriting
     expense
     ratio(1)(2)     32.5%        26.5%        29.7%
    Combined
     ratio(1)       107.1%       112.8%       109.9%

     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 SEGMENT INFORMATION
                          (In thousands of U.S. dollars)
                                   (Unaudited)
                       FOR THE QUARTER ENDED JUNE 30, 2001

                                           Total        Financial
    General                              Insurance &    Products &
     operations: Insurance  Reinsurance  Reinsurance    Services     Total

    Net premiums
     earned      $339,923     $292,407     $632,330       $8,654    $640,984
    Fee income
     and other        413          714        1,127       10,366      11,493

    Net losses
     and loss
     expenses     201,598      183,339      384,937        2,014     386,951
    Acquisition
     costs         65,919       76,126      142,045        1,157     143,202
    Operating
     expenses      33,565       23,069       56,634        6,863      63,497
    Exchange
     (losses)
     gains         (2,783)      (4,825)      (7,608)          --      (7,608)

    Underwriting
     profit       $36,471       $5,762      $42,233       $8,986     $51,219

    Net investment income                                           $151,168
    Net realized and
     unrealized losses on
     investments and
     derivative
     instruments                                                     (31,072)
    Equity in earnings of
     insurance, other
     operating and
     investment affiliates                                            29,514
    Corporate, interest,
     taxes and other                                                 (72,223)
    Net income   $128,606

    Loss and
     loss expense
     ratio(1)        59.3%        62.7%        60.9%
    Underwriting
     expense
     ratio(1)(2)     29.3%        33.9%        31.4%
    Combined
     ratio(1)        88.6%        96.6%        92.3%

    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 SIX MONTHS ENDED JUNE 30, 2002

                                                  Total     Financial
                                                Insurance   Products
                          Insurance  Reinsurance    &          &       Total
                                               Reinsurance  Services
    General operations:
    Net premiums earned   $1,142,432  $916,467 $2,058,899  $42,214 $2,101,113
    Fee income and other      17,431     9,405     26,836    5,482     32,318

    Net losses and loss
     expenses                786,777   692,193  1,478,970   12,581  1,491,551
    Acquisition costs        159,609   192,509    352,118    6,003    358,121
    Operating expenses       200,214    49,707    249,921   27,302    277,223
    Exchange gains            24,293     7,277     31,570       --     31,570

    Underwriting profit
    (loss)                   $37,556   $(1,260)  $36,296    $1,810    $38,106

    Life operations:
    Net premiums earned          $--   $49,690   $49,690       $--    $49,690
    Fee income and other          --         2         2        --          2

    Claims and policy
     benefit reserves             --    66,579    66,579        --     66,579
    Acquisition costs and
     operating expenses           --     4,145     4,145        --      4,145

    Net investment income         --    32,343    32,343        --     32,343

    Net income from life
     operations                  $--   $11,311   $11,311       $--    $11,311

    Net investment income                                            $313,527
    Net realized and
     unrealized losses on
     investments and
     derivative instruments                                          (235,935)
    Equity in earnings of
     insurance, other
     operating and
     investment affiliates                                             40,564
    Corporate, interest,
     taxes and other                                                 (169,828)
    Net loss                                                          $(2,255)

    Loss and loss expense
     ratio (1)                 68.9 %    75.5 %    71.8 %
    Underwriting expense
     ratio (1) (2)             31.5 %    26.4 %    29.2 %
    Combined ratio (1)        100.4 %   101.9 %   101.0 %

    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 SIX MONTHS ENDED JUNE 30, 2001

                                                  Total     Financial
                                                Insurance   Products
                          Insurance  Reinsurance    &          &       Total
                                               Reinsurance  Services
    General operations:
    Net premiums earned     $609,396  $559,267 $1,168,663  $14,475 $1,183,138
    Fee income and other       3,038       151      3,189   15,373     18,562

    Net losses and loss
     expenses                361,729   351,797    713,526    3,629    717,155
    Acquisition costs        121,870   145,726    267,596    1,478    269,074
    Operating expenses        66,352    39,775    106,127   18,220    124,347
    Exchange (losses) gains   (1,401)   (5,037)    (6,438)      --     (6,438)

    Underwriting profit
     (loss)                  $61,082   $17,083    $78,165   $6,521    $84,686

    Net investment income                                            $294,264
    Net realized and
     unrealized gains on
     investments and
     derivative instruments                                            29,099
    Equity in earnings of
     insurance, other
     operating and
     investment affiliates                                             57,902
    Corporate, interest,
     taxes and other                                                 (118,416)
    Net income                                                       $347,535

    Loss and loss expense
     ratio (1)                 59.4 %    62.9 %    61.1 %
    Underwriting expense
     ratio (1) (2)             30.9 %    33.2 %    32.0 %
    Combined ratio (1)         90.3 %    96.1 %    93.1 %

    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 JUNE 30, 2002

                                 Gross Premiums   Net Premiums    Net Premiums
                                     Written         Written         Earned

    Casualty insurance              $421,091        $274,306        $204,890
    Casualty reinsurance             206,110         200,456         198,982
    Property catastrophe              64,740          47,018          53,574
    Other property                   319,005         218,158         224,614
    Marine, energy,
     aviation and satellite          178,046         120,475         119,256
    Lloyd's syndicates (1)           136,276         116,265          84,000
    Accident and health              (38,048)        (40,073)         45,041
    Financial products and services   84,539          82,125          23,084
    Life                              19,968          11,529          10,497
    Other insurance (2)              123,363          97,184          92,947
    Other reinsurance (2)             31,858          19,908          21,772
    Total                         $1,546,948      $1,147,351      $1,078,657

                     FOR THE QUARTER ENDED JUNE 30, 2001

                                 Gross Premiums   Net Premiums    Net Premiums
                                    Written         Written          Earned

    Casualty insurance              $250,039        $170,261        $113,502
    Casualty reinsurance             118,932          81,271          92,391
    Property catastrophe              50,892          44,726          41,035
    Other property                   175,535         128,075         124,787
    Marine, energy,
     aviation and satellite           77,088          36,959          49,606
    Lloyd's syndicates (1)           162,242         145,042         118,387
    Financial products and services   29,214          28,994           8,654
    Other insurance (2)              102,823          85,100          51,723
    Other reinsurance  (2)            39,082          28,724          40,899
    Total                         $1,005,847        $749,152        $640,984

     NOTES:
     1.  The Company's Lloyd's syndicates write a variety of coverages,
         primarily marine, energy, aviation and satellite.
     2.  Other premiums written and earned includes political risk, surety,
         bonding, and warranty lines.


                                XL Capital Ltd

            SUPPLEMENTARY PREMIUM INFORMATION BY LINE OF BUSINESS

                        (In thousands of U.S. dollars)
                                 (Unaudited)
                    FOR THE SIX MONTHS ENDED JUNE 30, 2002

                                 Gross Premiums   Net Premiums    Net Premiums
                                    Written         Written          Earned

    Casualty insurance              $916,327        $639,782        $441,758
    Casualty reinsurance             656,439         576,898         358,827
    Property catastrophe             262,486         224,420         113,899
    Other property                   898,262         597,922         454,399
    Marine, energy,
     aviation and satellite          475,916         346,732         223,043
    Lloyd's syndicates (1)           470,001         380,079         204,362
    Accident and health               89,858          64,904          64,699
    Financial products and services  156,335         151,310          42,214
    Life                              58,496          48,497          49,690
    Other insurance (2)              248,962         195,924         150,006
    Other reinsurance (2)            164,065         125,259          47,906
    Total                         $4,397,147      $3,351,727      $2,150,803

                    FOR THE SIX MONTHS ENDED JUNE 30, 2001

                                Gross Premiums    Net Premiums    Net Premiums
                                    Written         Written          Earned

    Casualty insurance              $439,226        $281,970        $198,510
    Casualty reinsurance             290,322         204,316         163,780
    Property catastrophe             153,050         142,568          77,857
    Other property                   353,081         254,968         219,118
    Marine, energy,
     aviation and satellite          254,665         152,367         111,428
    Lloyd's syndicates (1)           379,238         279,582         210,546
    Financial products and services   41,203          40,927          14,475
    Other insurance (2)              169,510         127,754          85,302
    Other reinsurance (2)             76,397          76,954         102,122
    Total                         $2,156,692      $1,561,406      $1,183,138

     NOTES:
     1.  The Company's Lloyd's syndicates write a variety of coverages,
         primarily marine, energy, aviation and satellite.
     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. dollars except per share amounts)
                                 (Unaudited)

                FOR THE QUARTERS ENDED JUNE 30, 2002 AND 2001

    Consolidated                          2002           2001      % Change

    Net (loss) income                  $(91,748)       $128,606        NM
    Operating income                    $25,018        $160,062       (84.4)%

    Net (loss) income per share          $(0.68)          $1.01        NM
    Operating income per share            $0.18           $1.25        NM

    Weighted average number of ordinary
     shares and ordinary share equivalent:
        Basic (2)                       135,662         125,396        NM
        Diluted (2)                     138,231         127,765        NM

    General Operations                    2002           2001       % Change

    Gross premiums written           $1,526,980      $1,005,847        51.8 %
    Net premiums written              1,135,822         749,152        51.6 %
    Net premiums earned               1,068,160         640,984        66.6 %
    Underwriting (loss) profit          (57,367)         51,219        NM
    Combined ratio                       109.9 %          92.3 %       18.9 %

    Life Operations

    Gross premiums written              $19,968             $--        NM
    Net premiums written                 11,529              --        NM
    Net premiums earned                  10,497              --        NM
    Claims and policy benefit reserves   18,816              --        NM
    Net investment income                16,825              --        NM
    Net income from life operations       6,039              --        NM

     NM = not meaningful

     Notes:
     1.  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 on the rounded numbers shown
         above.  Investors should refer to XL Capital Ltd's Form 10-Q for the
         quarter ended June 30, 2002 to be filed with the SEC (and XL Capital Group
         Ltd's other documents on file with the SEC) for a complete
         description of XL Capital Ltd.
     2.  Average stock options outstanding have been excluded where anti-
         dilutive to earnings per share.  Consequently, where there is a loss,
         basic shares outstanding represents fully diluted shares outstanding.


                                XL Capital Ltd

                   XL Capital Ltd SUPPLEMENTARY INFORMATION

                        (In thousands of U.S. dollars)
                                 (Unaudited)

                FOR THE QUARTERS ENDED JUNE 30, 2002 AND 2001

    General Operations

    Insurance:                            2002             2001       % Change

    Gross premiums written              $891,453         $625,587      42.5 %
    Net premiums written                 586,186          462,558      26.7 %
    Net premiums earned                  549,776          339,923      61.7 %
    Fee income                            10,886              413      NM
    Underwriting (loss) profit            (6,439)          36,471     (117.7)%
    Loss ratio                             74.6 %           59.3 %
    Expense ratio                          32.5 %           29.3 %
    Combined ratio                        107.1 %           88.6 %

    Reinsurance:                           2002             2001      % Change

    Gross premiums written              $550,988         $351,046      57.0 %
    Net premiums written                 467,511          257,600      81.5 %
    Net premiums earned                  495,300          292,407      69.4 %
    Fee income                             8,506              714      NM
    Underwriting (loss) profit           (54,046)           5,762      NM
    Loss ratio                             86.3 %           62.7 %
    Expense ratio                          26.5 %           33.9 %
    Combined ratio                        112.8 %           96.6 %

    Financial Products and Services:       2002             2001      % Change

    Gross premiums written               $84,539          $29,214     189.4 %
    Net premiums written                  82,125           28,994     183.2 %
    Net premiums earned                   23,084            8,654     166.7 %
    Fee income                             4,060           10,366     (60.8)%
    Underwriting profit                    3,118            8,986     (65.3)%

     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 June 30, 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.

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