XL CAPITAL LTD
SC 13D/A, 2000-06-01
SURETY INSURANCE
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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  SCHEDULE 13D
                                 (RULE 13D-101)

                 INFORMATION TO BE INCLUDED IN STATEMENTS FILED
                PURSUANT TO RULE 13D-1(A) AND AMENDMENTS THERETO
                         FILED PURSUANT TO RULE 13D-2(A)


                                (AMENDMENT NO. 3)


                      ANNUITY AND LIFE RE (HOLDINGS), INC.
            --------------------------------------------------------
                                (Name of Issuer)

                         COMMON SHARES, PAR VALUE $1.00
          ------------------------------------------------------------
                         (Title of Class of Securities)

                                   G03910 10 9
                ------------------------------------------------
                                 (CUSIP Number)
       ------------------------------------------------------------------

                             PAUL S. GIORDANO, ESQ.
                  EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL
                                 XL CAPITAL LTD
                              (F/K/A EXEL LIMITED)
                                CUMBERLAND HOUSE
                               ONE VICTORIA STREET
                             HAMILTON HM 11, BERMUDA
                                 (441) 292-8515


<PAGE>


                  (NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON
                      AUTHORIZED TO RECEIVE COMMUNICATIONS)

                                   MAY 1, 2000
             (DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT)


If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13D-1(f) or 13d-1(g), check the following
box: |_|.


Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. SEE Rule 13d-7(b) for other
parties to whom copies are to be sent.


                                    SCHEDULE 13D
-----------------------------                            -----------------------

   CUSIP No. G03910 10 9                                   Page 2 of 4 Pages

-----------------------------                            -----------------------

--------------------------------------------------------------------------------
   1          NAME OF REPORTING PERSON
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
                       XL CAPITAL LTD (F/K/A EXEL LIMITED)
                      I.R.S. IDENTIFICATION NO. 98-0058718
--------------------------------------------------------------------------------
   2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
                                                                      (a)  | |
                                                                      (b)  | |
--------------------------------------------------------------------------------
   3          SEC USE ONLY                                                 ||
--------------------------------------------------------------------------------
   4          SOURCE OF FUNDS
                    OO
--------------------------------------------------------------------------------
   5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
              PURSUANT TO ITEMS 2(d) OR 2(e)                               | |
--------------------------------------------------------------------------------
   6          CITIZENSHIP OR PLACE ORGANIZATION
                    CAYMAN ISLANDS
--------------------------------------------------------------------------------
               7
                   SOLE VOTING POWER
                         -2,970,213-

  NUMBER OF
              ------------------------------------------------------------------
               8
   SHARES          SHARED VOTING POWER
                         -0-

BENEFICIALLY
              ------------------------------------------------------------------
               9
  OWNED BY         SOLE DISPOSITIVE POWER
                         -0-

    EACH
              ------------------------------------------------------------------
               10
  REPORTING        SHARED DISPOSITIVE POWER
                         -0-

 PERSON WITH
--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
     11       AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
                          -2,970,213-
--------------------------------------------------------------------------------
     12       CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
              SHARES                                                      | |
--------------------------------------------------------------------------------
     13       PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
                    11.6%
--------------------------------------------------------------------------------
     14       TYPE OF REPORTING PERSON
                    CO
--------------------------------------------------------------------------------



            XL Capital Ltd (f/k/a EXEL Limited) hereby amends the Schedule 13D
originally filed with the Securities and Exchange Commission on April 30, 1998,
as amended by Amendment No. 1 thereto filed with the Securities and Exchange
Commission on January 18, 2000, and as further amended by Amendment No. 2
thereto filed with the Securities and Exchange Commission on March 15, 2000 (the
"Schedule 13D"). Capitalized terms used without definition in this Amendment No.
3 to the Schedule 13D shall have the respective meanings ascribed thereto in the
Schedule 13D.


ITEM 7.     MATERIAL TO BE FILED AS EXHIBITS.


            Item 7 of the Schedule 13D is hereby amended by deleting the form of
Letter Agreement previously filed as Exhibit 99.8 and replacing it with the
attached Exhibit 99.8:


 99.8       Letter Agreement.







<PAGE>


                                   SIGNATURES


            After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this statement is true, complete and
correct.


 Dated:  June 1, 2000

                                    XL Capital Ltd



                                    By:  /s/Paul S. Giordano
                                    Name: Paul S. Giordano
                                    Title: Executive Vice President,
                                           General Counsel & Secretary




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