XL Capital Ltd. plans to raise an estimated $2.8 billion in newcapital through two equity offerings.

The Bermuda-based property-casualty insurer and reinsurer willsell about $2.15 billion in ordinary shares and raise another $650million from an offering of equity security units.

In addition to the $1.5 billion in after-tax losses the companyincurred in the third quarter from catastrophes, XL must alsocontend with an unfavorable arbitration award in connection withits 2001 acquisition of Winterthur Swiss Insurance Company.

That award should result in a net charge of $830 million in thefourth quarter, XL Chief Executive Officer Brian O'Hara saidMonday. Yesterday, the company said it incurred pre-tax losses ofabout $210 million from Hurricane Wilma.

A.M. Best put the company's ratings under review with negativeimplications in September after the extent of its catastrophelosses became clear.

Best said it will review XL's capital program, as well as itsquota share agreement with a newly formed Bermuda reinsurer, CyrusRe, with regard to some of the group's property catastrophe andretrocessional exposures in the coming months.

Meanwhile, in other action, XL announced that its insurancesubsidiary, XL Insurance, will add an excess and surplus unit toits operations.

"This is a natural evolution for XL Insurance operations," saidCEO Clive Tobin. "Our Bermuda and Dublin origins very much reflectan E&S culture."