Document:

EXHIBIT 10.28

           AMENDMENT NO. 1 TO EXCESS OF LOSS REINSURANCE AGREEMENT

                AMENDMENT NO. 1 dated as of [ ] by and between XL FINANCIAL
ASSURANCE LTD., a company incorporated under the laws of Bermuda (hereinafter
referred to as "Ceding Company") and XL INSURANCE (BERMUDA) LTD, a company
incorporated under the laws of Bermuda, (hereinafter referred to as
"Reinsurer");

                WHEREAS, the Ceding Company and the Reinsurer entered into an
excess of loss reinsurance agreement effective October 1, 2001 ("XOL Agreement")
attached hereto as Exhibit A pursuant to which the Reinsurer agrees to indemnify
the Ceding Company for Losses paid, in an amount equal to the Liability Amount
for the first Determination Date and the XLI Incremental Liability Payment for
each Determination Date thereafter, in accordance with Article III thereof;
PROVIDED, HOWEVER, that the Reinsurer's aggregate indemnification obligations
under the XOL Agreement shall not exceed the Aggregate Limit of Liability;

                WHEREAS, the Reinsurer and the Ceding Company entered into a
letter agreement dated November 9, 2004 attached hereto as Exhibit B pursuant to
which the parties agreed to amend the definition of the Annual Reinsurance
Premium set forth in Article I, paragraph (B) thereto to reflect such amount as
would be payable by the Ceding Company to the Reinsurer if the XOL Agreement
were entered into with a third-party on an arm's-length basis and to use the
parties' best efforts to obtain the consent of Moody's to such amendment as
required by Article XX of the XOL Agreement; and

                WHEREAS, the Ceding Company and the Reinsurer wish to amend the
XOL Agreement to amend the definition of Annual Reinsurance Premium and certain
other provisions.

                Section 1. DEFINITIONS. Except as otherwise defined in this
Amendment No. 1, terms defined in the XOL Agreement are used herein as defined
therein.

                Section 2. AMENDMENTS. the XOL Agreement is hereby amended as
follows:

                2.01.   References in the XOL Agreement (including references to
        the XOL Agreement as amended hereby) to "this Agreement" (and indirect
        references such as "hereunder", "hereby", "herein" and "hereof") shall
        be deemed to be references to the XOL Agreement as amended hereby.

                2.02.   Article I(B) is hereby amended and restated in its
        entirety as follows:

        ""Annual Reinsurance Premium" shall mean the sum of $500,000 subject to
        adjustment as provided for in Section 6.4."

                2.03.   A new Section 5.3 is hereby added to Article V
        (Termination) to provide in its entirety as follows:

<PAGE>

        "5.3 Either party may terminate this Agreement at 12:01 am Eastern
        Standard Time on any anniversary date of the Effective Date of this
        Agreement by giving the other party and Moody's notice of such
        termination in accordance with Article XIX hereof at least ninety (90)
        days prior to such termination date."

                2.04.   A new Section 5.4 of hereby added to Article V
        (Termination) to provide in its entirety as follows:

        "5.4 Notwithstanding the foregoing, the Reinsurer shall have the right
        to terminate this Agreement at any time upon not less than ___ days
        prior written or electronic notice to the Ceding Company upon the
        occurrence of either one or both of the following events:

        (i)     a "Ceding Company Change in Control" (as defined below), and

        (ii)    a downgrade of the Ceding Company's Standard & Poor's financial
        strength rating below AA or a downgrade of the Ceding Company's Moody's
        financial strength rating below Aa2.

For the purposes of this Agreement, a "Ceding Company Change in Control" will be
deemed to occur in the event that (i) the ownership in Security Capital
Assurance Ltd ("SCA"), by the Reinsurer or by the Reinsurer and its affiliates
falls below thirty-five percent (35%) or (ii) SCA's direct or indirect ownership
interest in the issued and outstanding shares of voting securities of the Ceding
Company falls below ninety-five percent (95%)."

                2.05.   The second sentence of Section 6.3 is hereby deleted and
        restated in its entirety as follows:

        "The amount of such Annual Reinsurance Premium reimbursable hereunder
        shall be calculated by multiplying the then current Annual Reinsurance
        Premium, as may be amended from time to time pursuant to Section 6.4
        hereof, by a fraction, the numerator of which is 365 minus the number of
        days from the most recent anniversary of the Effective Date (or, if the
        Termination Date occurs prior to the first anniversary of the Effective
        Date, since the Effective Date) to the Termination Date, and the
        denominator of which is 365."

                2.06.   A new Section 6.4 is hereby added to Article VI
        (Premium; Accounts) to provide in its entirety as follows:

        "6.4 On an annual basis, effective as of any anniversary date of the
        Effective Date of this Agreement, the Reinsurer may adjust the Annual
        Reinsurance Premium for the succeeding twelve month period. The
        Reinsurer shall give the Ceding Company notice of such adjustment in
        accordance with Article XIX hereof at least one hundred twenty (120)
        days prior to the anniversary date of the Effective Date of this
        Agreement at which such premium adjustment shall become effective.[ The
        Reinsurer, if requested by the Ceding Company, shall provide the Ceding
        Company with support for its calculation of any adjustment to the
        Reinsurance Premium and shall discuss such calculation with the Ceding
        Company.]"

                                      -2-
<PAGE>

                Section 3. CONDITIONS PRECEDENT. The amendment to the XOL
Agreement set forth in Section 2 above shall become effective, as of the date
hereof, upon the satisfaction of the following condition precedent:

                3.01.   MOODY'S CONSENT. Pursuant to Article XX of the XOL
        Agreement and with respect to this Amendment No. 1, the parties shall
        have obtained the prior written consent of Moody's.

                3.02.   EXECUTION. This Amendment No. 1 shall have been executed
        and delivered by each of the Ceding Company and the Reinsurer.

                Section 4. MISCELLANEOUS. Except as herein provided, the XOL
Agreement shall remain unchanged and in full force and effect. This Amendment
No. 1 may be executed in any number of counterparts, all of which taken together
shall constitute one and the same amendatory instrument and any of the parties
hereto may execute this Amendment No. 1 by signing any such counterpart. This
Amendment No. 1 shall be governed by, and construed in accordance with, the laws
of Bermuda.

                                      -3-
<PAGE>

The parties hereto have caused this Amendment No. 1 to be duly executed and
delivered as of the day and year first above written.

SIGNED for and on behalf of
XL INSURANCE (BERMUDA) LTD

By:
Name:
Title:

SIGNED for and on behalf of
XL FINANCIAL ASSURANCE LTD.

By:
Name:
Title:

<PAGE>

                                    EXHIBIT A

                      EXCESS OF LOSS REINSURANCE AGREEMENT

                                    Exh. A-1
<PAGE>

                                    EXHIBIT B

                                LETTER AGREEMENT

                                    Exh. B-1EXHIBIT 10.31

                         REINSURANCE AGREEMENT GUARANTEE

                                                         Dated as of May 1, 2004

      XL Insurance (Bermuda) Ltd. ("XL"), for consideration received, hereby
unconditionally and irrevocably guarantees to XL Capital Assurance Inc. (the
"Reinsured") under the Second Amended and Restated Facultative Quota Share
Reinsurance Treaty dated as of May 1, 2004, between XL Financial Assurance Ltd.
("XLFA") and the Reinsured to which this is attached (the "Agreement") the full
and complete performance of all obligations, including, without limitation,
payment of all amounts when due by XLFA under the Agreement.

      For the further protection of the Reinsured, XL irrevocably and
unconditionally guarantees payment of any amount paid by XLFA under the
Agreement that is subsequently avoided or returned in whole or in part as a
preference payment or under other similar provisions under applicable law.

      This Guarantee, and any dispute, controversy or claim arising out of or
relating to this Guarantee, shall be governed by and construed in accordance
with the internal laws of the State of New York, except insofar as such laws:

      (1)   pertain to regulation under the New York Insurance Law or
            regulations issued by the Insurance Department of the State of New
            York pursuant thereto, applying to insurers doing insurance
            business, or issuance, delivery or procurement of policies of
            insurance, within the State of New York or as respects risks of
            insureds situated in the State of New York; or

      (2)   are inconsistent with any provision of this Guarantee.

      This Guarantee sets forth in full the undertaking of XL and shall not be
modified, altered or affected by any other agreement or instrument, including
any modification or amendment thereto or by the merger. consolidation or
dissolution of XLFA. This Guarantee may not be cancelled or revoked. THIS
GUARANTEE IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND
SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW.

      Any disputes arising under or relating to this Guarantee shall be resolved
in the same manner and forum as shall be prescribed in or otherwise available
with respect to disputes under or relating to the Agreement.

<PAGE>

      IN WITNESS WHEREOF, XL has caused this Guarantee to be executed and
delivered on its behalf in Hamilton, Bermuda this 1st day of May, 2004.

                                    XL INSURANCE (BERMUDA) LTD

                                    By: /s/ Christopher Coelho
                                        ----------------------------------------
                                        Name:  Christopher Coelho
                                        Title: Senior Vice President &
                                               Chief Financial Officer

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