of 2001. Net operating income for the first quarter of 2002 was $210.4 million, or $1.53 per
share, compared with $156.7 million, or $1.24 per share, for the quarter ended March 31, 2001.
Results for the quarter ended March 31, 2002 include the results of Winterthur International,
which was acquired with effect from July 1, 2001. They also include the results of Le Mans Ré,
which is accounted for as a consolidated subsidiary with effect from January 1, 2002. In the quarter ended March 31, 2001, the Company's share of the net income of Le Mans Ré was
included in equity in net income of insurance affiliates. Results of the Company's Lloyd's
operations are included in the insurance segment, and are no longer shown separately.
Total assets as of March 31, 2002 were $30.6 billion, compared with $28.0 billion as of
December 31, 2001. Fully diluted book value per share as at March 31, 2002 was $40.94
compared with $40.35 as at December 31, 2001.
Net investment income from general operations was $155.6 million in the first quarter of 2002,
compared with $143.1 million in 2001's first quarter. Net realized losses on investments and net realized and unrealized losses on derivatives in the first quarter of 2002 was $119.2 million
compared with net realized gains of $60.2 million in 2001's first quarter.
The Company's equity in the net income of its investment affiliates for the first quarter of 2002
was $32.2 million in 2002 versus $20.4 million in the first quarter of 2001. The Company's
equity in the net income of its insurance affiliates was breakeven in the first quarter of 2002
versus $8.0 million in the first quarter of 2001.
The combined ratio for the Company's general insurance and reinsurance operations was 92.0%
in the first quarter of 2002 compared with 93.9% in the first quarter of 2001. The loss ratios
were 63.2% and 61.3% in the first quarters of 2002 and 2001, respectively, with corresponding
expense ratios of 28.8% and 32.6% for the same quarters, respectively.
Commenting on the first quarter results, Brian M. O'Hara, President and Chief Executive Officer
of XL, stated, "Our first quarter results reflect the strong growth and improved market conditions
that we continue to see in all segments of the Company. Additionally, we have benefited from a
flight to quality and from new premiums from the inclusion of XL Winterthur International and
Le Mans Ré in the first quarter."
A live on-line webcast of a call with analyst and investors will be held at 10:00 a.m. Eastern
Time on Tuesday, April 30, 2002 to review the first quarter 2002 results at www.xlcapital.com. 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. Additional unaudited supplemental financial information relating to the Company is available on its web site: www.xlcapital.com.