XL Capital's Statement Concerning the Tragic Events in the United States

HAMILTON, BERMUDA, 14 September 2001 -- HAMILTON, Bermuda (September 13, 2001) -- "All of us at XL wish to express our deepest sympathies to the victims of this unparalleled tragedy and their families, many of whom are colleagues in our industry," said Brian M. O'Hara, President and Chief Executive Officer of XL Capital Ltd (NYSE: XL). "Although the human side of this tragedy far outweighs all other concerns, we at XL have the highest commitment to supporting our customers at this time of great need."

Based on initial loss reports and estimates, XL preliminarily anticipates having claims of approximately $600 million to $700 million, net of reinsurance recoveries, stemming from the attacks on the World Trade Center and related events. "This estimate remains subject to change as additional information comes to light," said Mr. O'Hara. Claims are expected to arise mainly from the company's aviation, property and business interruption insurance and reinsurance coverages.

Mr. O'Hara stated, "As both an insurer and reinsurer, XL has always specialized in providing its customers with protection from large catastrophic events. We are in the business of bearing such risks and stand ready to meet all of our obligations, especially in the context of one of the worst disasters in U.S. history. Our customers should rest assured that XL has ample balance sheet strength and liquidity to pay claims on a timely basis."

"For our shareholders," continued Mr. O'Hara, "these events obviously will have a significant negative impact on XL's short-term earnings for the third quarter of 2001, but we are highly confident about our company's future prospects and financial strength."

Separately, Jerry de St. Paer, Executive Vice President and Chief Financial Officer of XL, said, "With regard to a private placement of senior debt securities due to settle tomorrow, XL has decided not to proceed with this transaction in view of the dislocation of the financial markets caused by the World Trade Center attack. This financing is not needed to meet our anticipated liquidity needs, including in connection with the losses in the United States."

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 June 30, 2001, XL had consolidated assets of approximately $18.7 billion and

consolidated shareholders' equity of approximately $5.7 billion. Additional information on XL is available at: www.xl-capital.com.

This press release contains forward-looking statements which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about XL's beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements and therefore you should not place undue reliance on them. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: (a) the size of XL's claims may change due to the preliminary nature of reports and estimates of loss and damage to date; (b) the timely and full recoverability of reinsurance placed by XL with third parties; (c) the timing of claims payments being faster than anticipated by XL; (d) adverse developments in the world's insurance, reinsurance and financial markets; and (e) the other factors set forth in XL's most recent report on Form 10-K and XL's other documents on file with the Securities and Exchange Commission. XL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

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For further information contact Jerry de St. Paer of XL Capital at phone: 1-441-294-7101 or Fiona Luck of XL Capital at phone: 1-441-294-7128. Information is also available at www.bsx.com, on Bloomberg at BSX , and on Reuters at THE BSX.

For more information, contact Christopher Dill at the Bermuda Stock Exchange at phone 1-441-292-7212 or fax 1-441-292-7619. Information is also available at www.bsx.com, on Bloomberg at BSX , and on Reuters at THE BSX.

The Bermuda Stock Exchange is a fully-electronic offshore securities market founded in 1971. The BSX lists more than 300 securities -- including equities, mutual funds and bonds, as well as depository receipts -- and is recognized by the U.S. SEC as a Designated Offshore Securities Market.