XL Capital Notes Estimate of Revised Losses from Tsunami, 2004 Hurricanes

January 20, 2005

Bermuda-based XL Capital Ltd. announced that, based on initial loss
reports and preliminary estimates, it expects pre-tax net losses arising from the tsunami that struck South Asia on Dec. 26, 2004, of approximately $75 million.

Approximately two-thirds of these estimated losses are expected to be attributable to XL’s insurance segment, with the balance attributable to its reinsurance segment. The majority of expected losses relate to property exposure with marine, motor and personal accident exposures also affected.

Separately, the company has revised its estimate of expected net losses arising from hurricane activity during the third quarter of 2004. Previously, the company reported estimated pre-tax net losses, net of reinstatement premiums, of $446 million related to hurricanes Charley, Frances, Ivan and Jeanne.

Due primarily to the difficulty in assessing initial expected claims for Frances in advance of Jeanne, which followed a similar landfall path to Frances, the company has increased its estimate of expected pre-tax net losses, net of reinstatement premiums, to approximately $520 million.

The company expects that the impact of the Indian Ocean tsunami and the increase in estimated net losses from the 2004 hurricanes will result in an after-tax charge of approximately $139 million, which will adversely affect its fourth quarter and full year 2004 results but will not materially affect its overall financial condition.

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