[MID OCEAN LIMITED/EXEL LIMITED JOINT LETTERHEAD]





Contacts:          EXEL Limited                        Mid Ocean Limited
                   Gavin R. Arton                      John M. Wadson
                   (441) 292-8515                      (441) 292-1358





                             MERGER OF EXEL LIMITED
                        AND MID OCEAN LIMITED COMPLETED
                                ---------------
                      EXEL Combines Reinsurance Operations

HAMILTON,  BERMUDA,  August 7, 1998 -- EXEL Limited  (NYSE:XL)  ("EXEL") and Mid
Ocean Limited  (NYSE:MOC) ("Mid Ocean") announced that approval for their merger
has been  received  from the  Grand  Court of the  Cayman  Islands  and that the
transaction closed today.

"I am very  pleased  that the  merger of our two  companies  is now  finalized,"
stated Brian M. O'Hara,  Presdient  and Chief  Executive  Officer of EXEL.  "The
integration of our  organizations is substantially  completed and I am extremely
pleased with how well our cultures have come together," Mr. O'Hara added.

EXEL also  announced  today that the  combination  of the principal  reinsurance
subsidiaries of EXEL and Mid Ocean, X.L. Global  Reinsurance  Company,  Ltd. and
Mid Ocean Reinsurance Company,  Ltd.,  respectively,  has been completed.  Henry
C.V.  Keeling  has been  named  President  and Chief  Executive  Officer  of the
combined  company,  which will operate as "X.L. Mid Ocean  Reinsurance  Company,
Ltd." and have capital and surplus in excess of $1 billion.

EXEL  Limited,  through  its  subsidiaries,  is a leading  provider  of  general
liability,  directors and officers  liablity,  employment  practices  liability,
political risk, X.L. Risk Solutions, excess property insurance and


                                       1


reinsurance  coverages  and financial  products to  industrial,  commercial  and
professional  service  firms,  insurance  companies and other  enterprises  on a
worldwide basis.

Mid Ocean Limited, through its wholly-owned subsidiaries,  Mid Ocean Reinsurance
Company, Ltd. and The Brockbank Group plc, provides a broad range of reinsurance
and insurance products on a global basis.


This  presentation may contain  forward-looking  statements.  Actual results may
differ  materially  from those  predicted  in such  forward-looking  statements.
Additional  information  concerning  factors that could cause actual  results to
differ  from  those in such  forward-looking  statements  is  contained  in EXEL
Limited's Annual Report on Form 10-K for the fiscal year ended November 30, 1997
and other documents on file with the Securities and Exchange Commission.

                                      # # #


















                                       2