Exhibit 10.1.2

EXECUTION COPY

AMENDMENT NO. 2 TO TRANSITION AGREEMENT

     AMENDMENT NO. 2 dated as of August 5, 2008 (this “Amendment No. 2”) among
XL Capital Ltd., a Cayman Islands company (“XL Capital”), XL Insurance (Bermuda)
Ltd, a Bermuda company (“XLI”), X.L. America, Inc., a Delaware corporation
(“XLA”), and Syncora Holdings Ltd (formerly known as Security Capital Assurance
Ltd), a Bermuda company (“SCA” and collectively with XL Capital, XLI, and XLA,
the “Parties”).

     WHEREAS, on August 4, 2006, the Parties entered into a certain transition
agreement, as amended on May 3, 2007 (the “Transition Agreement”); and

     WHEREAS, the Parties have entered into that certain Master Commutation,
Release and Restructuring Agreement dated as of July 28, 2008 (the “Master
Restructuring Agreement”) among SCA, Syncora Guarantee Inc. (formerly known as
XL Capital Assurance Inc.), Syncora Guarantee Re Ltd. (formerly known as XL
Financial Assurance Ltd), XL Financial Administrative Services Inc., SCA Bermuda
Administrative Ltd., XL Capital Assurance (U.K.) Limited and those Portfolio
Trusts a party thereto, XL Capital, XLI, XL Reinsurance America Inc., X.L.
Global Services Inc., XL Services (Bermuda) Limited and XLA and the consenting
counterparties party thereto, pursuant to which the Parties have agreed to amend
the Transition Agreement.

     NOW, THEREFORE, in consideration of the premises and the covenants and
agreements contained herein and in the Master Restructuring Agreement, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound hereby, the Parties agree
as follows:

     Section 1. Definitions. Capitalized terms not otherwise defined in this
Amendment No. 1 shall have the meanings ascribed to them in the Transition
Agreement.

     Section 2. Amendments. Articles III, VII, and IX of the Transition
Agreement are hereby amended as follows:

     2.1 The second and third paragraphs of Section 3.3 shall be stricken and
deleted in their entirety, including any other references to such paragraphs of
such section as it appears in the Transition Agreement.

     2.2 Section 7.1 of the Transition Agreement shall be stricken and deleted
in its entirety, including any other references to such section as it appears in
the Transition Agreement.

     2.3 The second sentence of Section 7.5(b) and the second sentence of
Section 7.5(c) of the Transition Agreement shall be stricken and deleted in
their entirety, including any other references to such sections as it appears in
the Transition Agreement.

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     2.4 Section 7.7 of the Transition Agreement shall be stricken and deleted
in its entirety, including any other references to such section as it appears in
the Transition Agreement.

     2.5 Section 7.8 of the Transition Agreement shall be stricken and deleted
in its entirety, including any other references to such section as it appears in
the Transition Agreement.

     2.6 Section 9.12 of the Transition Agreement shall be stricken and deleted
in its entirety, including any other references to such section as it appears in
the Transition Agreement.

     Section 3. Voting Restriction Termination Event. The Parties hereby
acknowledge and agree that upon transfer of all of the SCA common shares owned
by the XL Group to the SCA Shareholder Entity (as defined in the Master
Restructuring Agreement) or upon deposit of certificates evidencing all of the
SCA common shares owned by the XL Group with the Escrow Agent (as defined in the
Master Restructuring Agreement) pursuant to the terms of the Master
Restructuring Agreement, a Voting Restriction Termination Event will be deemed
to occur.

     Section 4. Miscellaneous.

     4.1 Except as provided herein, the Transition Agreement shall remain
unchanged and in full force and effect.

     4.2 This Amendment No. 2 may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall constitute
one and the same amendatory instrument. This Amendment No. 2 may be executed by
facsimile signature(s).

     4.3 This Amendment No. 2 shall be governed by, and construed in accordance
with, the laws of the state of New York, without regard to its conflict of laws
principles. The Parties consent to the non-exclusive jurisdiction of the courts
of New York.

     4.4 The Parties hereby forever waive and release each other and their
respective subsidiaries, affiliates, predecessors, and successors in interest,
and all of their current, past, and future officers, directors, partners,
principals, agents, insurers, servants, employees, representatives, attorneys,
and advisors, acting in their capacities as such, from any and all claims,
liabilities, causes of action, demands, and damages of whatever kind or nature
and whether known or unknown arising under the Transition Agreement prior to the
Closing Date (as defined in the Master Restructuring Agreement).

[Signature Page to Follow]

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      IN WITNESS HEREOF, the Parties have caused this Amendment No. 2 to the
Transition Agreement to be duly executed and delivered as of the day and year
first written above.

XL Capital Ltd

By: /s/ Robert Kuzloski          
Name: Robert Kuzloski
Title: Senior Vice President

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO TRANSITION AGREEMENT]

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XL Insurance (Bermuda) Ltd

By: /s/ Robert Kuzloski          
Name: Robert Kuzloski
Title: Assistant Secretary

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO TRANSITION AGREEMENT]

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X.L. America, Inc.

By: /s/ Richard G. McCarty          
Name: Richard G. McCarty
Title: Senior Vice President, General Counsel and Secretary

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO TRANSITION AGREEMENT]

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Syncora Holdings Ltd
formerly known as
Security Capital Assurance Ltd

By: /s/ Tom Currie          
Name: Tom Currie
Title: SVP

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO TRANSITION AGREEMENT]

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