Exhibit 99.1

[XL Capital Logo Omitted]

                                                     XL Capital Ltd
                                                     XL House
                                                     One Bermudiana Road
                                                     P. O. Box HM 2245
                                                     Hamilton HM JX
                                                     Bermuda

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


IMMEDIATE

Contact:          Scott C. Hoy                       Roger R. Scotton
                  Investor Relations                 Media Relations
                  (441) 294-7201                     (441) 294-7165



            XL CAPITAL ANNOUNCES ESTIMATE OF LOSSES FROM INDIAN OCEAN
           TSUNAMI AND REVISES ESTIMATE OF LOSSES FROM 2004 HURRICANES

Hamilton, Bermuda (January 20, 2005): -- XL Capital Ltd (NYSE: XL) ("XL" or the
"Company") announced today that, based on initial loss reports and preliminary
estimates, it expects pre-tax net losses arising from the tsunami that struck
South Asia on December 26, 2004 of approximately $75 million. Approximately
two-thirds of these estimated losses are expected to be attributable to XL's
insurance segment, with the balance attributable to its reinsurance segment. The
majority of expected losses relate to property exposure with marine, motor and
personal accident exposures also affected.

Separately, the Company has revised its estimate of expected net losses arising
from hurricane activity during the third quarter of 2004. Previously, the
Company reported estimated pre-tax net losses, net of reinstatement premiums, of
$446 million related to hurricanes Charley, Frances, Ivan and Jeanne. Due
primarily to the difficulty in assessing initial expected claims for Frances in
advance of Jeanne, which followed a similar landfall path to Frances, the
Company has increased its estimate of expected pre-tax net losses, net of
reinstatement premiums, to approximately $520 million.

The Company expects that the impact of the Indian Ocean tsunami and the increase
in estimated net losses from the 2004 hurricanes will result in an after-tax
charge of approximately $139 million, which will





adversely affect its fourth quarter and full year 2004 results but will not
materially affect its overall financial condition.

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 September 30, 2004, XL Capital Ltd
had consolidated assets of approximately $46.8 billion and consolidated
shareholders' equity of approximately $7.4 billion. More information about XL
Capital Ltd is available at www.xlcapital.com.

This press release contains forward-looking statements about the effects of the
Indian Ocean tsunami and third quarter 2004 hurricanes 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 relating to the
Indian Ocean tsunami, the limited ability of claims personnel to make
inspections relating to the Indian Ocean tsunami 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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