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XL Capital Announces Exposure To Enron Corporation

21 December 2001

Hamilton, Bermuda: 20 December 2001 - XL Capital Ltd (NYSE: XL, BSX: XL.BH) ("XL") announced today that its estimated net aggregate insurance and reinsurance underwriting exposures in connection with the bankruptcy of Enron Corporation ("Enron") could total approximately $75 million (pre-tax). This amount includes estimated potential exposure through its surety underwriting of approximately $45 million. However, XL is not yet in a position to estimate what level of losses will result from its exposure to Enron. Certain circumstances, including the extent to which claims emerge, coverage determinations and developments in the Enron bankruptcy proceedings, may impact these estimates and the amount and timing of actual losses.

XL previously stated that it does not have exposure to the asset backed commercial paper program of Enron Funding Corp. In addition, the Company also previously announced that it believed it had minimal exposure to Enron in relation to its financial guarantee, weather risk trading and investment operations.

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.