XL Capital Announces Plans To Issue Ordinary Shares

Hamilton, Bermuda 29 October 29, 2001 - XL Capital Ltd ("XL") (NYSE: XL, BSX: XL.BH) announced today that it currently plans to sell up to 7,000,000 ordinary shares (plus any additional shares that may be issued upon exercise of the underwriters' overallotment option) pursuant to XL's currently effective shelf registration statement. 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.