Exhibit 99.1

[XL Capital Logo Omitted]


                                                    XL Capital Ltd
                                                    XL House
                                                    One Bermudiana Road
                                                    Hamilton HM 11
                                                    Bermuda

                                                    Phone (441) 292 8515
                                                    Fax   (441) 292 5280
Press Release


Contact:          Lily B. Outerbridge               Roger R. Scotton
                  Investor Relations                Media Relations
                  (441) 294 7345                    (441) 294 7165


            XL CAPITAL LTD COMMENTS ON ESTIMATES REGARDING HURRICANE
           KATRINA AND OTHER THIRD QUARTER 2005 NATURAL CATASTROPHES


Hamilton, Bermuda - September 12, 2005: XL Capital Ltd (NYSE:XL) ("XL" or the
"Company") today announced that, based on initial analyses performed by the
Company and preliminary estimates received to date, it estimates that XL's net
losses (excluding net reinstatement premiums) relating to Hurricane Katrina will
be in the range of approximately one and three quarters per cent of the industry
loss. This estimate is consistent with XL's expectation for an event of this
profile. The Company expects that the loss adjustment process for Hurricane
Katrina will be protracted due to the complexity of the event. Accordingly, this
estimate is subject to revision.

Brian M. O'Hara, President and Chief Executive Officer of XL, commented: "We
believe that Hurricane Katrina could become the most costly natural catastrophe
for our industry to date. Clearly, it has had unprecedented human costs and our
sympathies go out to all of the victims and their families whose lives have been
impacted by this tragic event."

The Company also announced that it expects XL's combined estimated losses
relating to the other natural catastrophes, including the European Floods, that
occurred during the third quarter of 2005 will be approximately $80 million
pre-tax.

Mr. O'Hara further commented: "Hurricane Katrina and the other third quarter
natural catastrophes will adversely affect XL's third quarter 2005 results.
While these loss estimates impact XL's previous




guidance for 2005, we still anticipate an operating profit for the year barring
any further significant adverse events."

"We will be working closely with our customers over the upcoming months in
addressing their losses in a manner reflective of XL's commitment to those
customers."

"We also believe that XL is well-positioned to participate in the upcoming
renewal season as we expect no fundamental change in our risk appetite."

XL Capital Ltd, through its operating subsidiaries, is a leading provider of
insurance and reinsurance coverages and financial products and services to
industrial, commercial and professional service firms, insurance companies, and
other enterprises on a worldwide basis. As of June 30, 2005, XL Capital Ltd had
consolidated assets of approximately $53.3 billion and consolidated
shareholders' equity of approximately $8.4 billion. More information about XL
Capital Ltd is available at www.xlcapital.com.

This press release contains forward-looking statements about the estimated
effects of natural catastrophes that occurred during the third quarter of 2005
on the Company's results of operations and financial condition. Such statements
involve inherent risks and uncertainties. Statements that are not historical
facts, including statements about XL's beliefs or expectations, are
forward-looking statements. These statements are based on current plans,
estimates and expectations. Actual results may differ materially from those
projected in such forward-looking statements and therefore you should not place
undue reliance on them. A non-exclusive list of the important factors that could
cause actual events or results to differ materially from those in such
forward-looking statements include the preliminary nature of reports and
estimates of loss to date, the limited ability of claims personnel to make
inspections to date and the other important factors set forth in XL's most
recent annual report on Form 10-K, quarterly report on Form 10-Q and XL's other
documents on file with the Securities and Exchange Commission. XL undertakes no
obligation to update or revise publicly any forward-looking statement, whether
as a result of new information, future developments or otherwise.

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