Commenting on the Company's performance, Chief Executive Officer, Mike McGavick, said: "Solid underwriting and careful expense management, combined with our prudent reserving practices, provided a healthy combined ratio of 93.2% from P&C operations. For the quarter, we have recorded a 26% increase in book value per ordinary share to $23.84 and a 30% increase in tangible book value per ordinary share to $21.36. Total shareholders' equity increased from $7.5 billion to $9.2 billion in the quarter.

"These are encouraging numbers but clearly there are areas for continued improvement. For instance, gross premiums written for our P&C operations were 16.6% lower than the prior year quarter. Although on target with our current guidance for the year, continuing this recovery means we must remain vigilant in the face of challenging pricing conditions.

"Pressures from the current economic environment and where we are in the underwriting cycle have not deterred us from seeking the right price regardless of the impact on top line. We will continue to do so.

"The other area for improvement remains the investment portfolio. While XL had strong operating income in the quarter of $306.4 million, or $0.89 per ordinary share, that strong operating performance was offset by our recognition of $310.8 million in after-tax net realized losses related principally to other than temporary impairments. Although this charge resulted in a net loss available to ordinary shareholders of $11.4 million or $0.03 per ordinary share, we remain committed to an investment portfolio more properly suited to a P&C company, and have made significant strides over the past year to de-risk our portfolio in pursuit of that goal.

"On the positive side, our portfolio marks improved by $1.4 billion during the third quarter, and 54% of the $34.0 billion portfolio was in cash, government, government-related or government supported securities at the end of the third quarter. Given the increased stability in the capital markets, we have selectively redeployed some of our cash and proceeds from sales and maturities into high quality assets, achieving new money yields of 3.9%."

He concluded: "Overall we are pleased with the third quarter. Our operating results indicate what our clients and brokers have already clearly concluded - XL is delivering for our customers and, on an operating basis, for shareholders. As we approach the January renewal season, XL is fully focused on serving the needs of our customers, delivering value to our shareholders and emerging as the best P&C (re)insurer wherever we choose to compete."

Further details of the results for the quarter and of the Company's fixed income investment portfolio may be found in the Company's Financial Supplement and Fixed Income Portfolio Data Supplement, respectively. These documents are both dated October 28, 2009 and are available from the Investor Relations section of the XL Capital website www.xlcapital.com .

The Company will host a conference call to discuss its Third Quarter results on Wednesday, October 28, 2009 at 5:00 p.m. Eastern time. The conference call can be accessed through a listen-only dial-in number or through a live webcast. To listen to the conference call, please dial (866) 617-1526 or (210) 795-0624, passcode: €˜xl global'. The webcast will be available at www.xlcapital.com and will be archived on XL's website from approximately 8:00 p.m. Eastern Time on October 28, 2009, through midnight Eastern Time on November 27, 2009. A telephone replay of the conference call will also be available beginning at 8:00 p.m. Eastern Time on October 28, 2009, until midnight Eastern Time on November 27, 2009, by dialing (800) 337-5619 or (402) 220-9652, passcode: €˜xl global'.

Contact:         

David Radulski           Investor Relations                   (441) 294-7460

Carol A. Parker Trott  Media Relations                       (441) 294-7290

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