XL CAPITAL
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
000s of U.S. Dollars
Six Months Six Months
Ended Ended Yr End Yr End Yr End Yr End Yr End
30-Jun 30-Jun 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec
2002 2001 2001 2000 1999 1998 1997
--------------- ------------- ----------- ------------ ------------ ------------ ------------
Earnings:
Pre-tax income from
continuing operations (1,931) 300,844 (833,916) 376,734 390,252 636,670 776,550
Fixed charges 84,561 40,014 126,219 69,427 53,609 36,898 33,250
Distributed income of
equity investees 2,054 1,509 3,662 4,987 1,266 25,319 30,564
--------------- ------------- ----------- ------------ ------------ ------------ ------------
Subtotal 84,684 342,367 (704,035) 451,148 432,733 698,887 840,364
Less: Minority interest 4,034 517 2,113 1,093 220 749 308
--------------- ------------- ----------- ------------ ------------ ------------ ------------
Total Earnings 80,650 341,850 (706,148) 450,055 432,513 698,138 840,056
=============== ============= =========== ============ ============ ============ ============
Fixed Charges:
Interest costs 53,366 23,312 65,350 32,147 37,378 33,444 29,622
Accretion of deposit
liabilities 28,395 13,745 56,147 31,261 12,394 - -
Rental expense at 30% (1) 2,800 2,957 4,722 6,019 3,837 3,454 3,628
--------------- ------------- ----------- ------------ ------------ ------------ ------------
Total fixed charges 84,561 40,014 126,219 69,427 53,609 36,898 33,250
=============== ============= =========== ============ ============ ============ ============
Earnings to Fixed Charges 1.0 8.5 (5.6) 6.5 8.3 18.9 25.3
--------------- ------------- ----------- ------------ ------------ ------------ ------------
Deficiency N/A N/A 832,367 N/A N/A N/A N/A
--------------- ------------- ----------- ------------ ------------ ------------ ------------
(1) 30% represents a reasonable approximation of the interest factor
(2) For the year ended December 31, 2001, earnings were insufficient to cover
fixed charges by $832.4 million.