XL Board Announces Dividend Payments

Bermuda’s XL Capital Ltd. announced the following actions taken by its Board of Directors concerning dividend payments on the company’s shares:

— Declared a quarterly dividend on January 14, 2005, of $0.50 per ordinary share payable on the Company’s Ordinary Shares. The dividend will be payable on March 31, 2005, to ordinary shareholders of record on March 10, 2005.

— The quarterly dividend declared in October 2004 for the fourth quarter of 2004 amounted to $0.49 per ordinary share.

— The Board of Directors also resolved on January 14, 2005, to pay a dividend of $4,600,000.00 on March 31, 2005, to all Series A Preference Ordinary Shareholders of record as of March 30, 2005, being $0.50 per share.

— The Board of Directors further resolved on January 14, 2005, to pay a dividend of $5,480,468.75 on March 30, 2005, to all Series B Preference Ordinary Shareholders of record as of March 30, 2005, being $0.4765625 per share.