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

                          PROSPECTUS SUPPLEMENT NO. 12
                     (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.





                                      -3-






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

                                                                                
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..............            10,000,000              1.0                59,467          *

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          *



                                      -4-

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

Primex, Ltd.........................               175,000              *                   1,041          *

Princeton Insurance Co..............             4,000,000              *                  23,787          *

Medical Liability Mutual
   Insurance Co.....................            24,500,000              2.4               145,694          *

Mag Mutual Insurance Co.............               150,000              *                     892          *

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          *



                                      -5-

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

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         *

CooperNeff Convertible Strategies Fund,
   L.P..............................               857,000              *                   5,096         *

Societe Generale....................            50,541,000              5.0               300,552         *

UBS AG London Branch................             8,096,000              *                  48,145         *

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 Valor....................             5,500,000              *                  32,707         *




                                      -6-

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

UBS AG LON F/B/O PB....................         60,000,000              5.9               356,802         *

Hamilton Multi-Strategy Master Fund,
   L.P.................................            500,000              *                   2,973         *

Deutsche Bank Securities Inc...........          4,346,000              *                  25,844         *

Royal Bank of Canada Toronto..........          15,500,000              1.5                92,174         *

All other holders of Debentures or
   future transferees, pledgees,
   donees, assignees or successors
   of any such holders(3)(4)........           399,589,000             39.5             2,376,236          1.7

Total...............................         1,010,834,000            100.0             6,011,127          4.4




*    Less than one percent (1%).




                                      -7-


(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 November 26, 2002.


          The date of this Prospectus Supplement is November 26, 2002.