quarterly dividend on ordinary shares by 21 percent.

The dividend will now be 40 cents per share compared to the previous 33 cents.

It will be paid October 26 to shareholders of record October 12.

"This increase moves the company's dividend closer to the goal of paying out approximately 30 percent of net income as part of our ongoing management of capital,'' said EXEL president and CEO Mr. Brian O'Hara.

"In addition, it reflects our strong capital position and confidence about the future,'' he said.

EXEL Ltd., through its wholly-owned subsidiaries. X.L. Insurance Company, Ltd.

and X.L. Europe Insurance, provides general liability, directors and officers liability, professional liability and property insurance coverage to industrial, commercial and other enterprises, directors and officers of such enterprises and professional service firms.