Bermuda-based XL Capital Ltd. announced today that its board of directors has approved a plan to repurchase $1 billion of its Class A ordinary shares.

The company said the purchases will be made “from time to time in the open market” or in privately negotiated transactions, funded with cash or the proceeds of securities it issues.

XL said further that the timing and amount of the share repurchases under the program will depend on market conditions, legal requirements and other factors.

The program, XL noted, includes $135.4 million remaining from a repurchase of shares that was authorized by the board in January 2000. David Radulski, senior vice president and director of investor relations, said originally the 2000 authorization was for a repurchase of up to $500 million.

He said the buyback program is just one of many tools the company uses to structure its balance sheet in the best interest of stockholders.

XL Capital Ltd. provides primary insurance and reinsurance coverage and financial products and services.

As of Dec. 31, 2006, XL Capital Ltd. reported consolidated assets of approximately $59.3 billion and consolidated shareholders’ equity of $10.1 billion.

XL shares on the New York Stock Exchange began trading today at $73.57 a share, but by late morning were below Friday’s close of $72.90.