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XL Capital Ltd. 09 July 2008

Company News Alert

Significant increase in NYSE common stock price on 08 July 2008

NYSE HOLD XL Capital Ltd.’s (XL Capital) NYSE common stock price increased significantly on 08 July 2008 after
Direct access
recent decline to an
following theannouncement
full report that free of charge
its ratings had been atplaced on negative watch,
Common reflecting an increase in the broader financial market following respite in oil prices and the US Federal
Stock
http://www.iirgroup.com/researchoracle/viewreport/show/20248
Reserve’s indication that it might extend lending facilities to investment banks to improve liquidity in
financial markets. However, we are likely to revise our estimates and target price significantly
Ticker: XL downwards when we come to revalue the stock in view of weakness in premium rates and volatility in
Target price: US$72.25 global financial markets. Therefore, we maintain our current HOLD rating for the NYSE common stock,
Current price: US$20.43 although the current target price suggests a BUY.

Price change
(65.1%)
since last report: We will reassess our common stock rating for XL Capital in our next full update report.

European HOLD Although the current target price suggests a BUY rating, we maintain our current HOLD rating for the
European stock based on our fundamental outlook, and intend to reduce our target price in our next
Stock1 full update report. We no longer expect a significant currency impact on the European common stock
Ticker: XL.F over our investment horizon.
Target price: €50.46
Current price: €11.55
Price change
(69.2%) We will reassess the European stock rating for XL Capital in our next full update report.
since last report:

Supervisor: Somnath Banerjee


Analyst: Dewanshi Doshi Investment horizon - short term actionable trading strategies
Editor: Heloise Capon This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this
report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
Global Research Director: short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
Satish Betadpur, CFA readers with a shorter trading horizon. These are available online only at www.researchoracle.com.

Next news due: 2Q 08 results, 28


July-07 August 2008 In our 3Q 07 update report, dated 03 December 2007 we reiterated the XL Capital NYSE common
stock a BUY with a 6-12 month target price of US$72.25 indicating a potential upside of 23%.
Subsequently, in our company news alert dated 18 January 2008 we downgraded the NYSE common
stock rating to a HOLD, reflecting concerns over our fundamental outlook. Our European stock was
also rated a HOLD.
Having demonstrated a steady declining trend over the last year, the XL Capital NYSE common stock
price increased a significant 10.9% on 08 July 2008 to close at US$20.43, following a signal by the US
Federal Reserve that it could extend lending facilities to large US investment banks into next year to
inject liquidity into and stabilize the financial system, and boosted by the fall in oil prices on the day.
However, softening premium rates in the industry and weakness in global financial markets are likely
to impact the stock. Therefore, we intend to revise our estimates downwards when we come to revalue
the stock in our next full update report. Consequently, we maintain our current HOLD rating for the
NYSE common stock, although the current target price suggests a BUY.

Footnote
1 The XL.F stock has had a low average daily trading volume of below US$1 mn over the last 12 months.

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