Document:

AMENDED AND RESTATED SELLERS RETROCESSION
AGREEMENT (IN RESPECT OF THE PERIOD TO 30 JUNE 2001)
(THE "REINSURANCE AGREEMENT")

BETWEEN

XL WINTERTHUR INTERNATIONAL RE, WINTERTHUR, SWITZERLAND
(GENERALLY KNOWN AS WIRE BUT FOR THE PURPOSES OF THIS REINSURANCE AGREEMENT,
THE "PRINCIPAL REINSURED")

AND

WINTERTHUR SWISS INSURANCE COMPANY, WINTERTHUR, SWITZERLAND
(THE "REINSURER")

<PAGE>

RECITALS

A.    By the Second Amended and Restated  Agreement for the Sale and Purchase of
      Winterthur  International  dated as of 15 February  2001 (the "SPA"),  the
      Reinsurer agreed to sell to XL Insurance Ltd the Operations.

B.    Pursuant to the SPA, financial statements are being drawn up in respect of
      the  Operations  as  at  31  December  2000  (the  "31.12.2000   Financial
      Statements")  and as at the  Completion  Date (the  "Completion  Financial
      Statements").

C.    In  order  to help  fix more  precisely  the  values  of the loss and loss
      adjustments  expenses ("lae")  provisions and other items in the unaudited
      financial  statements in respect of the Operations as at 30 June 2001 (the
      "Unaudited Financial  Statements"),  the parties have agreed to enter into
      this  Reinsurance  Agreement.  This  Reinsurance  Agreement is intended to
      cover the run off of unpaid  loss and lae  provisions  and  certain  other
      items  (described  herein under the heading  "Calculation  of  Commutation
      Payment")  as at 30 June  2001 and to  commute  (a)  when  the  Completion
      Financial  Statements  have been agreed or otherwise  determined  (with an
      unqualified  (clean)  audit  opinion by KPMG in  accordance  with the SPA,
      which shall not involve KPMG placing  reliance on the continued  existence
      of this Reinsurance  Agreement) and the Purchase Price has been determined
      and paid ("Purchase Price Payment Date"),  in each case in accordance with
      the SPA, as at the date that the Completion Financial Statements have been
      so agreed  or  otherwise  determined  or (b) if the  Completion  Financial
      Statements  have  not  been so  agreed  or  otherwise  determined  and the
      Purchase  Price  has  not  been  determined  and  paid,  in  each  case in
      accordance with the SPA, on or before 31 December  2003, on and as at such
      date thereafter (such date not being later than the Purchase Price Payment
      Date) as the  Principal  Reinsured  may  determine  in writing  or, if the
      Principal  Reinsured  does not so  determine  before  the  Purchase  Price
      Payment Date, the Purchase Price Payment Date.

D.    This Amended and Restated Seller's Retrocession  Agreement supersedes,  in
      all respects, the Sellers Retrocession Agreement (in respect of the period
      to 30 June 2001)  dated 24 July 2001 and made  between the parties to this
      Reinsurance Agreement (the "Original Reinsurance Agreement") but shall not
      supersede,  amend,  modify or affect in any way, the Sellers  Retrocession
      Agreement  (in  respect  of the period to  31.12.2000)  made  between  the
      parties dated 24 July 2001 (the "31.12.2000 Reinsurance Agreement").

Article 1               Period of Reinsurance Agreement
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This  Reinsurance  Agreement  shall  apply  to  policies  forming  part  of  the
Operations written on or prior to 30 June 2001.

Additional cover details as described in the attached Schedule.

<PAGE>

Article 2                       Business Covered
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This  Reinsurance  Agreement  shall apply to the  business as  described  in the
Schedule.

Article 3                         Definitions
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Words and phrases  defined in the SPA shall,  in the absence of a definition  in
this Reinsurance Agreement, bear the meaning attributed to them in the SPA.

Article 4                      Reinsuring Clause
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The Reinsurer  hereby agrees to indemnify the Principal  Reinsured for the share
as set out in the Schedule of that part of the  Reinsureds'  aggregate  ultimate
net loss in respect of the policies forming part of the Operations written on or
prior to 30 June  2001,  which  exceeds  the  amount of the  deductible  for the
aggregate ultimate net loss during the period of this Reinsurance Agreement,  as
set out in the Schedule.

The sum  recoverable  under this  Reinsurance  Agreement  shall be up to but not
exceeding  the amount of cover for the  aggregate  ultimate  net loss during the
period of this Reinsurance Agreement as set out in the Schedule.

Additional cover details as described in the attached Schedule.

Article 5              Definition of "Ultimate Net Loss"
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The term "ultimate net loss" shall mean,  howsoever  classified in the Unaudited
Financial  Statements,  the sums  incurred by the  Reinsureds  in  settlement of
losses during the period of this Reinsurance Agreement,  and, for the purpose of
this  Reinsurance  Agreement,  the  term  "incurred"  shall  include,  howsoever
classified in the Unaudited Financial Statements, sums paid, case reserves, loss
expenses and  reserves  for incurred but not reported  losses (in each case only
applying  a discount  if a discount  was  applied  in the  31.12.2000  Financial
Statements, in which case such discount shall be applied on the same basis as it
was applied in the 31.12.2000  Financial  Statements).  The term "loss expenses"
shall include,  howsoever classified in the Unaudited Financial Statements,  all
the amounts incurred for actions, suits or proceedings and for other matters and
things  relating to any loss  recoverable  hereunder  at the  discretion  of the
Reinsured which in its judgement may be beneficial or expedient and all payments
made and costs and expenses  incurred  therefore shall be considered  (including
for the  avoidance  of  doubt  allocated  and  unallocated  lae).  Salvages  and
recoveries,  including  recoveries from all other reinsurances shall be deducted
from  such  loss to  arrive  at the  amount  of  liability,  if  any,  attaching
hereunder.

<PAGE>

All  salvages,  recoveries or payments  recovered or received  subsequent to any
loss settlement  hereunder shall be applied as if recovered or received prior to
the aforesaid  settlement,  and all necessary  adjustments  shall be made by the
parties hereto.

Nothing  in  this  clause  shall  be  construed  to  mean  that  losses  are not
recoverable   hereunder  until  the  Reinsureds'  ultimate  net  loss  has  been
ascertained and the Principal Reinsured shall be entitled to seek recovery under
this Reinsurance  Agreement  notwithstanding  that a Reinsured has not exhausted
its rights under any reinsurance arrangements relating to the business protected
under this Reinsurance Agreement,  provided that (i) the Principal Reinsured and
the  Reinsureds  have  first  sought in good faith to  recover  all  reinsurance
recoverables  under any such reinsurance  arrangements,  (ii) to the extent that
they have not been able to recover the same,  used their  respective  reasonable
endeavours  in good faith to assign all  outstanding  rights  against  any third
party under any such reinsurance  arrangements and (iii) if they are not legally
able to assign  such  outstanding  rights they shall  (following  payment by the
Reinsurer)  continue to use their  respective  reasonable  endeavours to exhaust
such  outstanding  rights  and, in such case,  if they make any  recovery in the
course of any related  proceedings or otherwise,  the Principal  Reinsured shall
account to the Reinsurer for any amounts so recovered by the Reinsureds but only
to the extent that the Principal  Reinsured has made any recoveries  against the
Reinsurer under this Reinsurance Agreement.

For the avoidance of doubt, the classification, characterisation or provision of
any amount in any  financial  statement  or in any note,  schedule,  addendum or
other similar document (including,  without limitation,  the Unaudited Financial
Statements) shall not be determinative or evidence of its proper classification,
characterisation or provision by the Reinsureds.

Article 6                       Disclosure, etc.
--------------------------------------------------------------------------------

The  Principal  Reinsured  shall  have no duty to make  full  disclosure  of all
material  facts  of  make a  presentation  of  any  risk  in  relation  to  this
Reinsurance  Agreement  to the  extent  that the same  relate  to any  matter in
existence  or  arising  prior to the  date of this  Reinsurance  Agreement.  The
Reinsurer  acknowledges that it has not entered into this Reinsurance  Agreement
on the basis of any  representation,  warranty or statement (express or implied)
made by the Principal Reinsured or any of the Reinsureds.

The Reinsurer and the Principal  Reinsured  shall act in good faith with respect
to the mutual  exchange of  information  in relation to any matter arising on or
after the date of this  Reinsurance  Agreement  and,  without  prejudice  to the
generality of the  foregoing,  the Reinsurer and the Principal  Reinsured  shall
disclose to the other any material matters relating to the business protected by
this  Reinsurance  Agreement  of which they become aware and arising on or after
the date of this  Reinsurance  Agreement.  No breach of the  obligations in this
paragraph  of this  Article 6 shall  allow  either  party to avoid or  otherwise
terminate this Reinsurance Agreement,  the sole remedy for any such breach being
a claim for damages.

<PAGE>

The Reinsurer  acknowledges that the Principal  Reinsured and the Reinsureds may
reorganise their existing business, such reorganisation  potentially including a
transfer of some or all of their  business to another member of the XL Insurance
Group. In the case of any reorganisation which is likely to affect adversely the
Reinsurer, the Principal Reinsured shall use reasonable endeavours in good faith
to inform the Reinsurer in advance of the  reorganisation  and the parties shall
consult in good faith with respect to the same.

Article 7                     Underwriting Policy
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The  Reinsureds  undertake,  to the extent  they are  legally  able to do so and
except as may  otherwise  be required  under  Applicable  Laws,  not to commute,
terminate  or  make  any  material  amendments  to any  reinsurance  arrangement
(whether or not in force as at the date of this Reinsurance  Agreement) relating
to the business protected under this Reinsurance Agreement except with the prior
written  consent  of the  Reinsurer  (which  consent  shall not be  unreasonably
withheld or delayed) if any such commutation, termination or amendment is likely
to  increase   materially  the  Reinsurer's   liability  under  this Reinsurance
Agreement. In the case of any other such commutation,  termination or amendment,
the Principal Reinsured shall use reasonable  endeavours in good faith to inform
the Reinsurer in advance of the such  commutation,  termination or amendment and
the parties shall consult in good faith with respect to the same.

Article 8                     Reinsurance Premium
--------------------------------------------------------------------------------

The Principal Reinsured shall pay to the Reinsurer the reinsurance premium(s) as
set out in the Schedule.

Article 9                            Taxes
--------------------------------------------------------------------------------

As original and/or as per attached Schedule.

Article 10                       Claim Advices
--------------------------------------------------------------------------------

The  Principal  Reinsured  shall advise the  Reinsurer  on a quarterly  basis of
losses  giving  rise  to  claims  hereunder  together  with an  estimate  of the
Reinsured's  liability and thereafter  keep the Reinsurer  reasonably  informed,
also on a quarterly basis, of any developments regarding the original claims.

Article 11                       Claim Payments
--------------------------------------------------------------------------------

All loss settlements  (excluding any EX GRATIA payments) made by the Reinsureds,
provided that such loss  settlements are made in the ordinary course of business
and that the Principal

<PAGE>

Reinsured and the  Reinsureds  shall have acted in good faith in making any loss
settlements  and are within the terms of this  Reinsurance  Agreement,  shall be
unconditionally  binding upon the Reinsurer and amounts  falling to the share of
the  Reinsurer  shall be payable by him upon  reasonable  evidence of the amount
paid or shortly due for  payment  being given by the  Principal  Reinsured.  The
Reinsurer  shall have the right to deduct any  outstanding  balances  due to him
from the Reinsureds under or in connection with this Reinsurance  Agreement from
any loss payment. For the purposes of this Article 11, an amount shall be deemed
"due" if (i) it has been so agreed in writing by the Principal Reinsured and the
Reinsurer or (ii) it has been finally  determined or declared by a court,  court
of arbitration or administration order.

Article 12         Accounting and Settlement of the Balances
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The accounts have to be drawn up by the Principal  Reinsured,  and as set out in
the Schedule, and are subject to review by the Reinsurer.

In the event of a disagreement between the Principal Reinsured and the Reinsurer
which  cannot be  resolved  within 30 days of  delivery  of the  accounts to the
Reinsurer,  the  provision of paragraph  3.2 and 3.11 of Part 2 of Schedule 5 of
the SPA shall apply MUTATIS MUTANDIS.

The settlement of the balances has to be effected as set out in the  Schedule(s)
and coordinated via the Treasury Department of the Reinsurer.

Article 13                    Errors and Omissions
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It is hereby  understood and agreed that any  inadvertent  delays,  omissions or
errors made in connection with this  Reinsurance  Agreement shall not be held to
relieve  either of the  parties  hereto  from any  liability  which  would  have
attached to them  hereunder  if such delay,  omission or error had not  occurred
provided that rectification is made promptly following discovery.

Article 14                     Access to Records
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The Principal  Reinsured shall procure (to the extent that it is legally able to
do so) that the  Reinsurer  or its  designated  representatives  shall have free
access at any reasonable time to all records of the Reinsureds  which pertain in
any way to this Reinsurance Agreement.  Clause 18.4 of the SPA (Confidentiality)
shall apply to this Reinsurance Agreement.

Article 15                     No Double Recovery
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The Principal  Reinsured and the Reinsurer shall not be entitled to recover from
the Reinsurer or the Principal Reinsured,  respectively,  under this Reinsurance
Agreement and the 31.12.2000  Reinsurance Agreement more than once in respect of
the same losses and neither party shall be

<PAGE>

liable for any losses to the extent that any losses have been  recovered by such
party under the 31.12.2000 Reinsurance Agreement.

Article 16                   Immediate Termination
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Either  party  shall  have the right to  terminate  this  Reinsurance  Agreement
immediately  by  tendering  notice of  termination  upon the other  party if the
performance of this Reinsurance Agreement is rendered legally impossible.

Except as set out in this  Article  16,  neither  party  shall have any right to
terminate this Reinsurance Agreement.

In the event of this  Reinsurance  Agreement being  terminated at any date other
than the Commutation  Effective Date, the rights and obligations of both parties
under this Reinsurance  Agreement shall remain in full force until the effective
date of  termination.  The  Reinsurer  shall remain  responsible  for any losses
incurred prior to termination  which shall be determined in accordance  with the
commutation terms hereunder.

Any notice of termination shall be communicated in writing by registered letter,
telex  or  telegram  and  addressed  to the  other  party.  In the  event  of an
interruption of communications any notice of termination shall be deemed to take
effect as soon as it is despatched or submitted for despatch.

Article 17                        Commutation
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The  Reinsurer  and the  Reinsureds  shall  be  released  from  all  rights  and
obligations  under this  Reinsurance  Agreement upon payment of the  Commutation
Payment as defined in the Schedule(s).

Article 18                     Rates of Exchange
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As per attached Schedule(s).

Article 19                         Arbitration
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This Reinsurance Agreement is governed by Swiss law.

Notwithstanding  that this  Reinsurance  Agreement  is governed by Swiss law any
disputes   arising  out  of  this   Reinsurance   Agreement  or  concerning  its
interpretation or validity shall be referred to a Court of Arbitration conducted
pursuant to the rules of the London  Court of  International  Arbitration  which
will take place in London and which shall consist of two

<PAGE>

arbitrators,  one to be  appointed  by each party,  and a chairman  who shall be
appointed by the  arbitrators  before they have studied the case  material.  The
arbitrators  and the chairman shall be active or retired  officials of companies
or  underwriters  carrying on a similar  type of  insurance  and/or  reinsurance
business to that protected hereunder.

If either  party  fails to appoint an  arbitrator  within four weeks after being
requested  in  writing  by the  other  party  to do so,  or in the  event of the
arbitrators  failing to agree as to the  appointment  of the chairman  within an
identical period after their own appointment,  such arbitrator or chairman shall
be appointed by the  President  for the time being of the Institute of Chartered
Accountants in England and Wales.

The procedure shall be at the discretion of the Court of  Arbitration.  It shall
pronounce  on the  distribution  between the parties of costs and  charges.  The
ruling of the Court of Arbitration shall be in writing,  stating the reasons for
its  decision  and be  signed. If one of the  arbitrators  refuses  to sign  the
decision, this shall have no bearing on its validity.

Article 20                 Other Terms and Conditions
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As set out in the Schedule(s).

<PAGE>

Schedule
Aggregate Excess of Loss Reinsurance Agreement
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General
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Principal Reinsured               Winterthur International

Reinsureds                        The entities listed in Part 1 of Schedule 2 to
                                  the  SPA  and  the  owners  of the  portfolios
                                  listed as  transferors in Part 2 of Schedule 2
                                  to  the  SPA  (but  only  in  respect  of  the
                                  relevant   Operations   and  only  until  such
                                  relevant  Operations  are  transferred  to  XL
                                  Insurance or any other Purchaser in accordance
                                  with the SPA,  after which time the  Reinsured
                                  in respect of such relevant  Operations  shall
                                  be XL Insurance or any other  Purchaser  which
                                  is the transferee of such relevant  Operations
                                  in respect of the Relevant Operations).

Period of Reinsurance             Effective 30 June 2001.
Agreement (Article I)

                                  This  Reinsurance  Agreement  will be commuted
                                  from  the  Commutation  Effective  Date  where
                                  Commutation  Effective Date means (a) the date
                                  on which the Completion  Financial  Statements
                                  have been agreed or otherwise determined (with
                                  an  unqualified  (clean) audit opinion by KPMG
                                  in  accordance  with the SPA) and the Purchase
                                  Price has been  determined  and paid,  in each
                                  case  in   accordance   with  the  SPA,   such
                                  commutation to take effect as at the date that
                                  the Completion  Financial Statements have been
                                  so agreed or  otherwise  determined  or (b) if
                                  the Completion  Financial  Statements have not
                                  been so agreed or otherwise determined and the
                                  Purchase  Price  has not been  determined  and
                                  paid, in each case in accordance with the SPA,
                                  on or before 31  December  2003,  on and as at
                                  such  date  thereafter  (such  date not  being
                                  later than the Purchase Price Payment Date) as
                                  the  Principal   Reinsured  may  determine  in
                                  writing or, if the  Principal  Reinsured  does
                                  not so  determine  before the  Purchase  Price
                                  Payment Date, the Purchase Price Payment Date.
                                  For the avoidance of doubt,  the audit opinion
                                  referred   to  above  will  not  rely  on  the
                                  existence of this  Reinsurance  Agreement,  as
                                  confirmed by KPMG as auditors.

<PAGE>

Business Covered (Article 2)      All policies forming part of the Operations as
                                  defined in the SPA and  written on or prior to
                                  30   June   2001,   net  of  all   reinsurance
                                  recoveries.

                                  This  Reinsurance  Agreement  applies  only to
                                  claims in respect of policies  forming part of
                                  the Operations  written on or prior to 30 June
                                  2001.

Reinsuring Clause (Article 4)

Reinsurer's Share                 100 per cent

Amount of Deductible              USD  1,041,319,000  (in the case of a  payment
                                  from the Reinsurer to the  Reinsured)  and USD
                                  981,319,000  (in the cae of a payment from the
                                  Reinsured to the Reinsurer).

Amount of Cover                   USD 1,300,000,000.

Reinsurance Premium (Article 8)   Premium  of  USD   100,000,   payable  at  the
                                  Completion  Date or such  other time as agreed
                                  by the parties.

Accounting and Settlement of
the Balances (Article 12)

Accounts/Settlements              In  respect  of claims  settlements,  as at 31
                                  December  2001 and the end of each  subsequent
                                  calendar   quarter   until   the   Commutation
                                  Effective  Date and to be  rendered  within 45
                                  days of 31  December  2001 and the end of each
                                  subsequent calendar quarter.

                                  The  Principal   Reinsured   will  render  the
                                  calculations  of the  Reinsurer's  Commutation
                                  Payment   and   the   Principal    Reinsured's
                                  Commutation Payment to the Reinsurer within 45
                                  days of the Commutation Effective Date.

                                  If the  Principal  Reinsured and the Reinsurer
                                  agree,  claims  settlements  may  be  made  on
                                  annual  rather  than  quarterly  basis  on the
                                  terms  to  be  agreed.  Either  the  Principal
                                  Reinsured or the Reinsurer may terminate  such
                                  agreement, in which case the provisions of the
                                  previous

<PAGE>

                                  two  paragraphs   shall  apply  to  subsequent
                                  periods beginning the next calendar quarter.

Settlement of Balances            The claims settlements shall be settled within
                                  30  days of the  rendering  of  accounts.  The
                                  Commutation  Payment  is  to  be  settled  (i)
                                  within  30  days  of  the   rendering  to  the
                                  Reinsurer of the relevant calculations or (ii)
                                  if later,  on the date on which  the  Seasoned
                                  Net   Reserves   Payment   has  been  made  in
                                  accordance  with the SPA (but in any event the
                                  Commutation  Payment  is to be  settled at the
                                  latest on the  Purchase  Price  Payment  Date)
                                  and, in any case,  in  co-ordination  with the
                                  Treasury  Department  at the  Head  Office  in
                                  Winterthur.

Commutation (Article 17)          The Commutation Payment shall be calculated in
                                  accordance  with  the  attached   formula  for
                                  "Calculation of Commutation Payment".

Rates of Exchange (Article 18)    For the purpose of calculating  payments under
                                  this   Reinsurance   Agreement,   the  foreign
                                  exchange rates shall be fixed at 30 June 2001.

<PAGE>

Drawn up in duplicate and signed

in Winterthur on 8/2/02                and in Winterthur on 8/2/02
for and on behalf of                   for and on behalf of
the PRINCIPAL REINSURED                the REINSURER

/s/ Hans Gmunder                       /s/ Edwin Graf
---------------------------            --------------------------
/s/ Maria Di Geso                      /s/ Katharina Schoop
---------------------------            --------------------------

XL Winterthur International Re,        Winterthur Swiss Insurance Company,
Winterthur, Switzerland                Winterthur, Switzerland

<PAGE>

Calculation of Commutation Payment
--------------------------------------------------------------------------------

Under this Reinsurance  Agreement,  a commutation  payment as of the Commutation
Effective  Date  (the  "Commutation  Payment"),  shall be made  either  from the
Reinsurer to the Principal Reinsured (the "Reinsurer's  Commutation Payment") or
from the  Principal  Reinsured  to the  Reinsurer  (the  "Principal  Reinsured's
Commutation Payment") as set out in the Settlement of Balances provisions above.

Either a Reinsurer's  Commutation Payment or a Principal Reinsured's Commutation
Payment shall be payable, but a Reinsurer's  Commutation Payment and a Principal
Reinsured's Commutation Payment shall never both be payable.

In order to determine whether a Reinsurer's  Commutation  Payment or a Principal
Reinsured's  Commutation Payment is payable, the Reinsurer's Commutation Payment
and the Principal  Reinsured's  Commutation  Payment shall both be calculated in
accordance with the formulae set out below.

If the  calculation  of the  Reinsurer's  Commutation  Payment or the  Principal
Reinsured's  Commutation  Payment produces a negative figure in either case, the
amount of the  Reinsurer's  Commutation  Payment  or the  Principal  Reinsured's
Commutation Payment, as the case may be shall be zero.

If the  calculation  of  the  reinsurer's  Commutation  Payment or the Principal
Reinsured's  Commutation  Payment  produces a positive figure in either case, an
amount  equal  to this  figure  shall  be paid  to,  if the  calculation  of the
Reinsurer's  Commutation  Payment  produces a  positive  figure,  the  Principal
Reinsured,  or, if the  calculation  of the  Principal  Reinsured's  Commutation
Payment produces a positive figure, the Reinsurer.

In  no  circumstances  shall  a  negative  figure  for  either  the  Reinsurer's
Commutation  Payment or the Principal  Reinsured's  Commutation  Payment, as the
case may be, be set off  against a  positive  figure  for the other  Commutation
Payment.

For the purposes of  calculating  the  Reinsurer's  Commutation  Payment and the
Principal Reinsured's Commutation Payment, the following definitions shall apply
(in each case, per US GAAP):

a)  Net unpaid losses and 1ae  (including  IBNR) plus net  provisions for future
    dividends  to  policyholders  of the  Operations  at 30 June  2001  (per the
    Unaudited  Financial Statements),  in respect of losses occurring on 30 June
    2001 and prior.

b)  Paid losses and lae and paid  dividends to  policyholders  of the Operations
    during the period between 1 July 2001 and the Commutation Effective Date, in
    respect of losses occurring on 30 June 2001 and prior.

<PAGE>

c)  Net unpaid losses and 1ae  provisions  including IBNR and net provisions for
    future  dividends to  policyholders  of the  Operations  at the  Commutation
    Effective Date, in respect of losses occurring on 30 June 2001 and prior.

d)  Adjustment to the run off profit or loss arising from the  unwinding  during
    the period  between 1 July 2001 and the  Commutation  Effective  date of the
    discount in the net unpaid losses and 1ae  provisions  including IBNR of the
    Operations  at 30 June 2001 (per the  Unaudited  Financial  Statements),  in
    respect of losses occurring on 30 June 2001 and prior.

e)  Net  unearned  premiums  reserves  less  deferred  acquisition  costs of the
    Operations  at 30 June  2001,  in respect of  policies  forming  part of the
    Operations  written on or prior to 30 June 2001 (per the Unaudited Financial
    Statements).

f)  Net earned premiums less earned  acquisition  costs of the Operations during
    the  period  between  1 July 2001 and the  Commutation  Effective  Date,  in
    respect of policies forming part of the Operations written on or prior to 30
    June 2001.

g)  Net  unearned premiums reserves  less  deferred  acquisition  costs  of  the
    Operations at the Commutation Effective Date, in respect of policies forming
    part of the Operations written on or prior to 30 June 2001.

h)  Net receivables from insurance and reinsurance companies (including deposits
    and  estimates)  of the  Operations  at 30  June  2001  (per  the  Unaudited
    Financial Statements).

i)  Payments during the period between 1 July 2001 and the Commutation Effective
    Date, in respect of net receivables from insurance and reinsurance companies
    (including deposits and estimates) of the Operations at 30 June 2001.

j)  Net receivables from insurance and reinsurance companies (including deposits
    and estimates)  remaining at the  Commutation  Effective Date, in respect of
    receivables from insurance and reinsurance companies (including deposits and
    estimates) of the Operations at 30 June 2001.

Reinsurer's   Commutation  Payment  =  re-estimated  liability  -  deductible  =
a+b+c-d-e+f+g+h-i-j-USD  30,000,000,  except if this amount is negative in which
case the Reinsurer's Commutation Payment shall be zero.

The deductible in the case of the  Reinsurer's  Commutation  Payment  =a+e-h+USD
30,000,000

Principal Reinsured's Commutation Payment = deductible - re-estimated liability
= a-b-c+d+e-f-g-h+i+j-USD 30,000,000, except if this amount is negative in which
case the Reinsured's Commutation Payment shall be zero.

<PAGE>

The  deductible in the case of the  Principal  Reinsured  Commutation  Payment =
a+e-h-USD 30,000,000

EXAMPLE

If: a=1000, b=200, c=900, d=10e, e=350, f=150, g=250, h=200, i=50, j-140

Reinsurer's Commutation Payment=(-1000+200+900-10-350+150+250+200+50-140-30)=120

Principal Reinsured's Commutation Payment = (1000-200-900+10+350-150-250-200+50-
140-30)=-180

The  calculation of the Principal  Reinsured's  Commutation  Payment  produces a
negative  figure and would therefore be zero. The calculation of the Reinsurer's
Commutation  Payment  produces  a  positive  figure  and  would  be  payable  in
accordance with this Reinsurance Agreement.[WINTERTHUR LOGO]

WINTERTHUR GROUP                  Head Office             General Guisan-Str. 40
                                                          P.O. Box 357
                                                          CH-8401 Winterthur
                                                          www.winterthur.com

XL Insurance (Bermuda) Ltd
One Bermudiana Road
Hamilton
Bermuda

-and-

Vitodorum Reinsurance Company (formerly called
Winterthur International)
Mythenquai 10
CH-8022 Zurich

For the attention of Paul Giordano

24 December 2003

SELLERS RETROCESSION AGREEMENTS
--------------------------------------------------------------------------------

Dear Sirs,

We refer to the second amended and restated  agreement for the sale and purchase
of  Winterthur  International  (the  "SPA")  made  between us and dated as of 15
February 2001. Capitalised terms in this letter agreement shall have the meaning
as set out in the SPA unless otherwise defined in this letter agreement.

In relation to Article 5 of each of (i) the Sellers  Retrocession  Agreement (in
respect of the period to 31 December  2000) dated 24 July 2001 and made  between
Winterthur International (Re) and Winterthur;  and (ii) the Amended and Restated
Sellers Retrocession  Agreement (in respect of the period to 30 June 2001) dated
8 February 2002 and made between  Winterthur  International  (Re) and Winterthur
(collectively defined as the "SRAs"), we ask you to agree:

1.  to  the  insertion  of the  following  at the  end  of  the  first  sentence
immediately after the phrase "... 31.12.2000 Financial Statements)";

"provided that from and after agreement or determination  (whichever is earlier)
of the  Seasoned  Net  Reserves  Amount  but with  effect  from 30 June 2004 the
"ultimate  net loss" in respect of losses  shall not exceed the sum provided for
in respect of such  losses in the agreed or  determined  Seasoned  Net  Reserves
Amount except that such excess shall form part of the "ultimate net loss" to the
extent that it is due to (i) non  recoverability  of reinsurance  receivables or
collectables;  (ii) collected  reinsurance which has since become repayable;  or
(iii) additional sums payable to reinsurers which arise out of discussions as to
the valuation of reinsurance  receivables,  in each case, to the extent included
as part of the agreed or determined Seasoned Net Reserves Amount.

"Winterthur"
Swiss Insurance Company
<PAGE>

Page 2
--------------------------------------------------------------------------------

To the extent  that the  amounts  of any  payments  made under this  Reinsurance
Agreement between 30 June 2004 and the date of agreement or determination of the
Seasoned Net Reserves Amount would not have been required to be paid pursuant to
the previous  paragraph  if the Seasoned Net Reserves  Amount had been agreed or
determined  at that time,  such  amounts  shall be repaid to the party that made
such  payment  in  cash  within  five  Business   Days  of  such   agreement  or
determination  together with interest at a non-compounding rate per annum of 0.5
per cent. above Base Rate.

and

2.    to amend the third paragraph of Article 5 as follows:

(i)   so that "in such  case"  reads "in the case of either  (i) or (ii) of this
paragraph";

(ii)  so that the  following  words are included at the end of the paragraph "or
under the Seasoned Net Reserves Payment".

Clause 19 of the SRAs applies to this letter agreement.

Kindly consent to the above by signing and returning a copy of this letter
agreement.

Your faithfully

/s/ Hans Kuenzle                      /s/ John R. Dacey
--------------------------------------------------------
For and on behalf of "Winterthur" Swiss Insurance Company

/s/ Clive Tobin
---------------------------------------------------------
For and on behalf of XL Insurance (Bermuda) Ltd

/s/ Hans Gmunder
---------------------------------------------------------
For and on behalf of Vitodorum Reinsurance Company

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]