Global headquarters of XL Capital Ltd., XL House includes an artificial reef echoing its magnificent ocean surroundings.

XL’s new plan is for organic growth focusing on the three C’s: capital management, cycle management and cultural development.

XL Capital Ltd was established in Bermuda in 1990 and since then it has grown from a small company offering one line of business to a global operation with offices in 90 locations in 30 countries and employing more than 3,300 people. Managing client risks for over 15 years, XL companies have become a trusted partner for many of the world’s largest industrial, commercial, professional service firms, insurance companies and other enterprises. XL’s clients rely on them for their insurance, reinsurance and financial products and services needs. Despite a number of hurricane catastrophes in Florida and the disaster wrought by the Indian Ocean tsunami, net income for the company in 2004 topped the $1 billion mark for the first time. Total revenue also increased last year by an astounding 25% and assets grew by 19% to a total of $49 billion.

Today, XL has shifted its focus from the expansion-through-acquisition strategy of the 90s to one of organic growth. According to President and CEO Brian O’Hara, the new corporate strategy is based on three core elements which he identifies as the three C’s – capital management, cycle management and cultural development. Through disciplined underwriting, the company intends to maintain its superior financial strength ratings and strong capital position while working to rein in price volatility. It will also continue to foster a transparent corporate culture that conveys the company’s underlying values.

BRIAN O’HARA President and CEO XL Insurance Limited

“There are two fundamental aspects to a large commercial risk-taker, the first of which is capital. Companies must have substantial capital and a high credit rating to respond to major events. The other aspect is intellectual capital. We put a lot into developing our people. We currently have three training programs running that continuously upgrade the knowledge and skills of our employees so they can better understand our customers’ needs,” he says. He adds that respect, along with ethics, excellence, teamwork and development, are the company’s core values. “Customers will want to do business with people they respect and who have integrity. We think that, in time, these attributes will be meaningful to our customer’s decision-making in who to do business with.”

In the medium term, XL sees continuing opportunities in the U.S. primary casualty market, where it has been operating since 2003. It has also targeted new opportunities in the U.S. middle market professional liability and in European liability. Although XL has had a European presence since 1990, the company’s acquisition of Winterthur in 2001 gave it a much broader footing throughout the continent. “We have been doing business in Europe for some time, going back to our Dublin office in 1990,” says Mr. O’Hara. “We made progress there but we knew that to really have a presence in Europe, we had to acquire a company with a substantial European platform. We did so by purchasing Winterthur International, a large commercial account property and casualty insurance business, in July 2001.”

Net income in 2004 topped the $1 billion mark while total revenue increased by an astounding 25% and assets grew by 19%.

The XL Capital group of companies is comprised of three main operating segments – insurance, reinsurance and financial products and services. The insurance segment, XL Insurance, encompasses our property and casualty insurance business, and offers commercial property and casualty insurance products primarily in Europe, North America and Bermuda. The reinsurance segment, XL Re, is organized on a geographical basis, reflecting the locations of the insurance and reinsurance companies that purchase property, casualty and life reinsurance coverage. XL’s financial products and services segment, XL Financial, comprises financial guarantee insurance and reinsurance, institutional life and annuity products, as well as weather and risk management.