NAC REINSURANCE INTERNATIONAL LIMITED

INSURANCE COMPANIES ACT 1982

TRANSFER OF GENERAL BUSINESS

Notice is hereby given that NAC Reinsurance International Limited (“NAC Re”) applied to Financial Services Authority (“FSA”) on 12th February 2001, for approval, pursuant to Part II of Schedule 2C to the Insurance Companies Act 1982, to transfer, subject to regulatory approval, to XL Re Ltd, an Insurance Company incorporated in Bermuda which is authorised to write all classes of general business, reinsurance only, in the UK through a UK Branch, all of its rights and obligations under policies written by NAC Re in the United Kingdom prior to 12th February 2001. The Instrument of Transfer provides that the transfer secures the continuation by or against XL Re Ltd, of any legal proceedings by or against NAC Re that relates to those rights and obligations. Thus claims currently being dealt with by NAC Re would, after the transfer, be handled by XL Re Ltd. Future claims arising under the transferred policies would be similarly dealt with. Copies of statement of particulars of the proposed transfer are available for inspection at New London House, 6 London Street, London EC3R 7LP, between 9.30 a.m. and 4.30 p.m., Monday to Friday until 26th March 2001. Written representations concerning the transfer may be sent to The Financial Services Authority, Insurance and Friendly Societies Division, 25 The North Colonnade, Canary Wharf, London EC14 5HS, telephone +44 0207-676 1000, fax +44 0207-676 1099, website http://www.fsa.gov.uk, before 4th May 2001. The Financial Services Authority (“FSA”) will not determine the application until after considering such representations.