A.M. Best Assigns Ratings to XL Life Ltd

Business Wire, June 23, 2005

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR) of A (Superior) and an issuer credit rating (ICR) of "aa-" with a negative outlook to XL Life Ltd (Bermuda), a core subsidiary of XL Capital Ltd. (NYSE: XL). The FSRs of A (Superior) of the members of XL Capital Group currently carry a negative rating outlook and were affirmed on April 11, 2005.

XL Life Ltd's ratings reflect its role as a core reinsurance and life insurance operation for the XL Capital organization, as well as its adequate capitalization and profitable operations. Additionally, the majority of the liabilities for XL Life Ltd's retained blocks of business is guaranteed by a core subsidiary of XL Capital. Prospectively, A.M. Best expects XL Life Ltd's liabilities to comprise mainly of reinsurance of funding agreement business and insurance and reinsurance of mortality and longevity business.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.> 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 http://www.ambest.com.