XL Capital Prices Issue of Ordinary Shares

Hamilton, Bermuda: 1 November 2001 - XL Capital Ltd ("XL") (NYSE: XL, BSX: XL.BH) announced today that it has agreed to sell 8,000,000 ordinary shares pursuant to XL's currently effective shelf registration statement (plus up to an additional 1,200,000 shares issuable upon exercise of the underwriters' overallotment option). The ordinary shares are being issued at an initial price to the public of $89.00 per share. The underwriters for XL's ordinary share offering are Goldman, Sachs & Co., as book runner, Morgan Stanley & Co. Incorporated, Banc of America Securities LLC, Credit Suisse First Boston Corporation, JPMorgan and Merrill Lynch, Pierce, Fenner & Smith Incorporated.

The net proceeds from the sale of ordinary shares will be used for general corporate purposes.

XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As at September 30, 2001, XL had consolidated assets of approximately $25.7 billion and consolidated shareholders' equity of approximately $4.8 billion. More information about XL is available at www.xlcapital.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the ordinary shares or any other securities, nor will there be any sale of the ordinary shares or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.