Edgar Filing: XL CAPITAL LTD

Filed Pursuant to Rule 424(b)(3)
Registration Statement No. 333-66976

PROSPECTUS SUPPLEMENT NO. 13
(To Prospectus Dated November 29, 2001)

$1,010,834,000

XL CAPITAL LTD
Zero-Coupon Convertible Debentures Due 2021
Exchangeable for Class A Ordinary Shares of
XL CAPITAL LTD

This Prospectus Supplement supplements information contained
in that certain Prospectus dated November 29, 2001, as amended or supplemented,
relating to the potential sale from time to time by the Selling Securityholders
of up to $1,010,834,000 aggregate principal amount at maturity of Zero-Coupon
Convertible Debentures due 2021 (the "Debentures") of XL Capital Ltd, a Cayman
Islands exempted limited company, issued in a private transaction on May 23,
2001 and Class A Ordinary Shares, par value US$0.01 each, of XL Capital Ltd (the
"Ordinary Shares"), issuable upon exchange of the Debentures. The Debentures are
being offered for the account of the holders thereof or by their transferees,
pledgees, donees or successors. This Prospectus Supplement is not complete
without, and may not be delivered or utilized except in connection with, the
Prospectus, including any amendments or supplements thereto. Capitalized terms
used herein but not defined have the meanings assigned to such terms in the
Prospectus.

The information contained in the table set forth in the
Prospectus under the caption "Selling Securityholders" shall be deleted and
replaced in its entirety with the information set forth below with respect to
the Selling Securityholders, the respective principal amount at maturity of
Debentures owned by the Selling Securityholders, and the respective principal
amount of Debentures offered by the Selling Securityholders hereby. Unless
otherwise indicated, none of the Selling Securityholders has, or within the past
three years has had, any position, office or other material relationship with XL
Capital Ltd or any of its affiliates. Because the Selling Securityholders may
offer all or some portion of their Debentures or the Ordinary Shares issued upon
exchange of their Debentures, pursuant to this Prospectus Supplement, no
estimate can be given as to the amount of the Debentures or the Ordinary Shares
issued upon exchange of the Debentures that will be held by the Selling
Securityholders upon termination of any sales. In addition, the Selling
Securityholders identified below may have sold, transferred or otherwise
disposed of all or a portion of their Debentures, or the Ordinary Shares issued
upon exchange of their Debentures, since the date on which they provided the
information regarding their Debentures, in transactions exempt from the
registration requirements of the Securities Act.

-2-

Unless otherwise indicated, each Selling Securityholder is
offering all Debentures beneficially owned by them pursuant to this Prospectus
Supplement. No securityholder may offer their Debentures, or the Ordinary Shares
issued upon exchange of their Debentures, pursuant to this Prospectus Supplement
until the securityholder is named as a Selling Securityholder in this Prospectus
Supplement or in another supplement to the Prospectus.

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Aggregate Principal Percentage Number of Our Percentage of Our
Amount at Maturity of Ordinary Shares Ordinary Shares
of Debentures That Debentures That May be Sold Outstanding (2)
Name May be Sold Outstanding (1)
----------------------------------- -------------------- -------------- ---------------- -----------------

Tribeca Investments, L.L.C.......... 20,000,000 2.0 118,934 *
Continental Casualty Company........ 4,300,000 * 25,571 *
J.P. Morgan Securities Inc.......... 14,500,000 1.4 86,228 *
Lord Abbett Bond Debenture Fund,
Inc.............................. 12,500,000 1.2 74,334 *
CFFX, LLC........................... 11,000,000 1.1 65,414 *
MedAmerica Insurance c/o
Income Research & Management..... 2,900,000 * 17,245 *
MedAmerica New York Insurance c/o
Income Research & Management..... 1,200,000 * 7,136 *
Van Kampen Harbor Fund.............. 6,000,000 * 35,681 *
Putnam Convertible Income-
Growth Trust..................... 9,110,000 * 54,174 *
Putnam Variable Trust-
Putnam VT Global Asset
Allocation Fund.................. 320,000 * 1,903 *
Putnam Convertible Opportunities and
Income Trust..................... 320,000 * 1,903 *
Putnam Asset Allocation
Funds-Balanced Portfolio......... 1,210,000 * 7,196 *
Putnam Asset Allocation
Funds-Conservative Portfolio..... 940,000 * 5,590 *
Lincoln National Global Asset
Allocation Fund, Inc............. 150,000 * 892 *
Museum of Fine Arts, Boston......... 30,000 * 178 *
Parker-Hannifin Corporation......... 250,000 * 1,487 *
Zola Partners, LP................... 600,000 * 3,568 *
Lyxor Master Fund................... 350,000 * 2,081 *
JMG Triton Offshore Fund, LTD....... 11,000,000 1.1 65,414 *
Highbridge International LLC........ 6,654,000 * 39,569 *
NCMIC Insurance Co.................. 225,000 * 1,338 *

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Medical Liability Mutual
Insurance Co..................... 4,500,000 * 26,760 *
Mag Mutual Insurance Co............. 125,000 * 743 *
Landesbank Schleswig-Holstein
International S.A................ 30,000,000 3.0 178,401 *
Purchase Associates, L.P............ 559,000 * 3,324 *
Commonfund Event Driven Company c/o IBT
Fund Services
(Cayman)......................... 67,000 * 398 *
Levco Alternative Fund, Ltd......... 2,114,000 * 12,571 *
Continental Assurance Company Separate
Account (E)...................... 700,000 * 4,163 *
Alta Partners Holdings, LDC......... 5,525,000 * 32,856 *
Aristeia Trading, LLC............... 3,675,000 * 21,854 *
Citi JL, Ltd........................ 88,000 * 523 *
Credit Suisse Asset Management...... 3,000,000 * 17,840 *
KBC Financial Products USA Inc...... 3,300,000 * 19,624 *
Lincoln National Convertible Securities
Fund............................. 3,250,000 * 19,327 *
AIG Soundshore Strategic Holding Fund
Ltd.............................. 10,895,000 1.1 64,789 *
AIG Soundshore Opportunity Holding Fund
Ltd.............................. 13,105,000 1.3 77,932 *
Wilmington Trust Company as owner
trustee for the Forrestal Funding
Master Trust..................... 7,500,000 * 44,600 *
Ohio Bureau of Workers Compensa-
tion............................. 437,000 * 2,599 *
AXIS Capital Management Ltd......... 21,300,000 2.1 126,665 *
Goldman Sachs and Company........... 20,000,000 2.0 118,934 *
Morgan Stanley...................... 32,925,000 3.3 195,795 *
Credit Industriel D'Alsace Et De
Loraine.......................... 26,000,000 2.6 154,614 *
BNP Paribas Equity Strategies SNC LP 5,143,000 * 30,584 *

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CooperNeff Convertible Strategies Fund,
L.P.............................. 857,000 * 5,096 *
Societe Generale.................... 50,541,000 5.0 300,552 *
UBS AG London Branch................ 990,000 * 5,888 *
Salomon Smith Barney Inc............ 8,930,000 * 53,104 *
Susquehanna Capital Group........... 7,500,000 * 44,600 *
AIG Soundshore Holdings Ltd......... 7,500,000 * 44,600 *
Tokai Asia Ltd...................... 20,000,000 2.0 118,934 *
First Union Securities Inc.......... 10,000,000 1.0 59,467 *
BTES - Convertible Arb.............. 1,000,000 * 5,947 *
BTPO - Growth vs Value.............. 1,000,000 * 5,947 *
Cheyne Capitol Management
Limited.......................... 2,000,000 * 11,893 *
Newport Investments Inc............. 1,700,000 * 10,109 *
KBC Financial Products (Cayman Islands)
Limited.......................... 12,000,000 1.2 71,360 *
Ellsworth Convertible Growth and Income
Fund, Inc........................ 1,500,000 * 8,920 *
Bancroft Convertible Fund, Inc...... 1,500,000 * 8,920 *
CDC IXIS Paris...................... 5,000,000 * 29,734 *
Beamtenkasse Des Kanton Zurich...... 3,000,000 * 17,840 *
Hamilton Partners Limited........... 500,000 * 2,973 *
Gaia Offshore Master Fund Ltd.......... 3,450,000 * 20,516 *
Oppenheimer Convertible Securities Fund
6,000,000 * 35,680 *
Salomon Brothers Asset Manage-
ment, Inc........................ 9,275,000 * 55,156 *
ADI Convex 5,500,000 * 32,707 *
Valor..............................
UBS AG LON F/B/O PB.................... 50,159,000 5.0 298,281 *
Hamilton Multi-Strategy Master Fund,
L.P......................................... 500,000 * 2,973 *

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Deutsche Bank Securities 4,346,000 * 25,844 *
Inc.............
Royal Bank of Canada Toronto.......... 15,500,000 1.5 92,174 *
Merrill, Lynch, Pierce, Fenner and
Smith Inc. 15,130,000 1.5 89,974 *
......................................
Banc of America Securities
LLC................................... 350,000 * 2,082 *
All other holders of Debentures or
future transferees, pledgees,
donees, assignees or successors
of any such holders(3)(4)........ 429,256,000 42.5 2,552,657 1.9

Total............................... 1,010,834,000 100.0 6,011,127 4.4
* Less than one percent (1%).

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(1) Assumes conversion of all of the holder's Debentures at a conversion
rate of 5.9467 Ordinary Shares per $1,000 principal amount at maturity
of the Debentures. This conversion rate is subject to adjustment,
however, as described under "Description of the Debentures--Conversion
Rights." As a result, the number of our Ordinary Shares issuable upon
conversion of the Debentures may increase or decrease in the future.
Does not include our Ordinary Shares that may be issued by us upon
purchase of the Debentures by us at the option of the holder.

(2) Calculated based on Rule 13d-3(d)(i) of the Exchange Act, using
135,841,086 Ordinary Shares outstanding as of November 4, 2002. In
calculating this amount for each holder, we treated as outstanding the
number of our Ordinary Shares issuable upon conversion of all of that
holder's Debentures, but we did not assume conversion of any other
holder's Debentures. Does not include our Ordinary Shares that may be
issued by us upon purchase of the Debentures by us at the option of the
holder.

(3) Information about other selling securityholders will be set forth in
prospectus supplements, if required.

(4) Assumes that any other holders of Debentures, or any future pledgees,
donees, assignees, transferees or successors of or from any such other
holders of Debentures, do not beneficially own any of our Ordinary
Shares other than the Ordinary Shares issuable upon conversion of the
Debentures at the initial conversion rate.

All information in this Prospectus Supplement is as of February 12,
2003.

The date of this Prospectus Supplement is February 12, 2003.