XL Capital Ltd.Unveils Q2 Numbers, Reports Net Income of $363.6 Million

Bermuda-based XL Capital Ltd. reported net income available to
ordinary shareholders for the quarter ended June 30, 2004, of $363.6 million, or $2.62 per ordinary share, compared with $347.7 million, or $2.51 per ordinary share, for the quarter ended June 30, 2003. Annualized net income return on ordinary shareholders’ equity for the quarter was 21.7% compared with 20.8% for the year ago quarter.

Net income excluding net realized gains and losses on investments and net realized and unrealized gains and losses on credit and investment derivative instruments, net of tax’, for the quarter increased 15% to $308.9 million, or $2.23 per ordinary share, compared with $268.6 million, or $1.94 per ordinary share, for the year ago quarter. Annualized return on ordinary shareholders’ equity on the same basis was 18.4% compared with 16.1% for the year ago quarter.

“XL delivered its second highest level of quarterly net income ever this
quarter, after our record performance in the first quarter. These results
underscore the increasing value of our global diversified platform,
significantly expanded product capabilities and focus on improving penetration of existing customer relationships,” Brian O’Hara, president and CEO of XL, said. “The combined ratio for our general operations in the quarter was 87.6%, reflecting the strength of our underwriting discipline and continued solid market fundamentals, despite increasing competition in certain product lines.”