There has been a marked improvement in market conditions and pricing according to XL Capital President Brian O'Hara.

Mr. O'Hara made the observation as his company produced good results for the second quarter of the year which reflected the increase in the company size and business.

Net income for the second quarter ended June 30, 2000 rose by nearly 140 percent to $142.5 million, or $1.13 per share.

In the second quarter of 1999 net income stood at $62.7 million, or $0.48 per share.

Mr. O'Hara said: "The company's second quarter earnings are in line with expectations. I am pleased to note that we are seeing improvements in market conditions and pricing in nearly all areas of our insurance and reinsurance businesses.

"However, we believe that this is only the beginning of an anticipated property-casualty underwriting cycle change and it will require a prolonged period of upward pricing before all of our operations reach a more appropriate level of return.'' Economic operating income was $149.2 million, or $1.19 per share, in the second quarter of 2000 compared with $159.9 million, or $1.23 per share, during the same period in 1999.

Operating income for the second quarter this year was $135.5 million, or $1.08 per share, compared with $147.1 million, or $1.13 per share, for the same period last year.

For the six months ended June 30, 2000, net income was $366.2 million or $2.91 per share, compared with $272.5 million, or $2.07 per share, during the same period in 1999.

XL earnings rise 140 percent Economic operating income was $314.1 million, or $2.49 per share, during the first six months of 2000 compared with $314.5 million, or $2.39 per share, for the first six months of 1999.

Operating income for the first six months of 2000 was $286.3 million, or $2.27 per share, compared with $291.3 million, or $2.22 per share, for the six months ended June 30, 1999. Total revenues were $674.0 million and $585.1 million for the quarters ended June 30, 2000 and 1999, respectively. Gross premiums written were $696.6 million for the second quarter of 2000, compared with $501.3 million for the second quarter of 1999. Net premiums earned were $503.4 million in the second quarter of 2000 versus $414.4 million in 1999.

Brian O' Hara