XL Capital intends to raise $1 billion in capital through an offering of fixed/floating shares. The new shares will not be exchangeable for, or convertible into, ordinary shares in the company.

From the money raised XL intends to purchase around $830 million of its class A ordinary shares "from time to time" and to use the net proceeds from the new issue also for general purposes and refinancing debt.

The Bermuda-based $70 billion insurer and reinsurer has announced the offering of fixed/floating series E perpetual non-comulative preference ordinary shares.

The joint book-runners for the offering are J.P. Morgan Securities, Citigroup Global Markets and Merrill Lynch, Pierce, Fenner & Smith Incorporated. The shares have no maturity date but are callable after ten years by XL.

Ratings agency Fitch has assigned an "A-" assessment to the new series E shares, while A. M. Best has given a "bbb" rating to the shares.

Full details of the offering, including a description of the preference shares and related risk factors related, are set forth in a preliminary prospectus supplement and related prospectus filed with the Securities and Exchange Commission.

At the end of 2006 XL had consolidated assets of approximately $59.3 billion and consolidated shareholders' equity of approximately $10.1 billion.