XL Capital Ltd Comments On Estimates Regarding Hurricane Katrina And Other Third Quarter 2005 Natural Catastrophes

Hamilton, Bermuda - September 12, 2005: XL Capital Ltd (NYSE:XL) ("XL" or the "Company") today announced that, based on initial analyses performed by the Company and preliminary estimates received to date, it estimates that XL's net losses (excluding net reinstatement premiums) relating to Hurricane Katrina will be in the range of approximately one and three quarters per cent of the industry loss. This estimate is consistent with XL's expectation for an event of this profile. The Company expects that the loss adjustment process for Hurricane Katrina will be protracted due to the complexity of the event.  Accordingly,  this estimate is subject to revision.

Brian M. O'Hara, President and Chief Executive Officer of XL, commented: "We believe that Hurricane Katrina could become the most costly natural catastrophe for our industry to date. Clearly, it has had unprecedented human costs and our sympathies go out to all of the victims and their families whose lives have been impacted by this tragic event."

The Company also announced that it expects XL's combined estimated losses relating to the other natural   catastrophes (including the European Floods) that occurred during the third quarter of 2005 will be approximately $80 million pre-tax.

Mr. O'Hara further commented: "Hurricane Katrina and the other third quarter natural catastrophes will adversely affect XL's third quarter 2005 results.  While  these loss estimates impact XL's previous guidance for 2005, we still anticipate an operating profit for the year  barring any further significant adverse events."

"We will be working closely with our customers over the upcoming months in addressing their losses in a  manner reflective of XL's commitment to those customers."

"We also believe that XL is well-positioned to participate in the upcoming renewal season as we expect no fundamental change in our risk appetite."

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. As of June 30, 2005, XL Capital Ltd had consolidated assets of approximately $53.3 billion and consolidated shareholders' equity of approximately $8.4 billion. More information about XL Capital Ltd is available at www.xlcapital.com.