Exhibit 99.1

May 28, 2004


John C. Duncanson
Cahill Gordon & Reindel LLP
Eighty Pine Street
New York, N.Y.  10005

Re:         Registration  Statement  on Form S-3 on behalf of XL Capital Ltd, XL
            Capital  Finance  (Europe) plc, XL Capital Trust I, XL Capital Trust
            II and XL Capital Trust III.

Dear Mr. Duncanson:

C T Corporation System,  located at 111 Eighth Avenue, New York, New York 10011,
hereby accepts its  appointments  as agent for service of process for each of XL
Capital Ltd, XL Capital  Finance  (Europe)  plc, XL Capital  Trust I, XL Capital
Trust II and XL Capital Trust III in connection with the Registration  Statement
on Form S-3.

Any  process  received  by us for XL  Capital  Finance  (Europe)  plc  shall  be
forwarded to:

                        Fitzwilliam House
                        10 Saint Mary Axe
                        London EC3A 8NL
                        England

Any process  received by us for XL Capital  Ltd, XL Capital  Trust I, XL Capital
Trust II or XL Capital Trust III shall be forwarded to:

                        XL House
                        One Bermudian Road
                        Hamilton, Bermuda HM11
                        Attention:  Paul S. Giordano, Esq.
                        Tel. (441) 292-8515

CT must be notified  immediately of any change(s) to this address or the billing
address

We  acknowledge  receiving $ 1,400.00 as payment of charge for the first year of
these five  appointments.  Each of XL Capital Ltd, XL Capital  Finance  (Europe)
plc, XL Capital  Trust I, XL Capital  Trust II and XL Capital  Trust III will be
billed annually at our then-current  renewal rate so long as such bills continue
to  be  paid,   or  until  we  are  advised  in  writing  to   discontinue   our
representation.

CT has not accepted this  appointment  on an  irrevocable  basis.  Our continued
representation  is contingent  upon our receipt of timely payment of our charges
for this service.

Very truly yours,

/s/ Michael Mitchell

Michael Mitchell
Team Leader