A.M. Best Affirms Ratings of XL Capital Group; Assigns Negative Outlook.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--March 26, 2004

A.M. Best Co. has affirmed the financial strength ratings of A+ (Superior) of XL Capital Group (Hamilton, Bermuda) and its affiliated companies. Concurrently, A.M. Best has affirmed all existing debt ratings, including

The removal of the ratings from under review follows the successful issuance of XL Capital Ltd's (XL Capital) (NYSE:XL) (Bermuda) $750 million 6.5% adjustable conversion rate Equity Security Units (ESU), which were previously assigned an "a-" senior debt rating. Proceeds from the ESU were used to replenish the capital of the XL Capital Group and certain of its core operating subsidiaries.

The negative outlook is based on A.M. Best's concern with the sufficiency of XL Capital's consolidated capital base for the group's current rating given the recent premium growth and market expansion into insurance lines of business. The outlook will remain negative until A.M. Best completes its due diligence process during the second quarter of 2004.

For a complete listing of the financial strength and debt ratings of XL Capital Ltd., please visit www.ambest.com/press/032601xlcapital.pdf.

For current Best's Ratings, independent data and analysis on more than 470 reinsurance companies, please visit http://www3.ambest.com/reinsurance/.

For a list of A.M. Best's debt ratings, please visit http://www3.ambest.com/debtratings/.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.