Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Condensed Income Statements, Captions [Line Items]



	September 30, 2017
Condensed Consolidating Balance Sheet (U.S. dollars in thousands, except share data)	XL-Group (1)		XLIT		Other XL Group Subsidiaries		Consolidating Adjustments and Eliminations			XL Group Consolidated
ASSETS
Investments:
Total investments available for sale	$	—	$	525,675	$	32,497,830	$	—		$	33,023,505
Total investments trading	—		—		1,875,826		—			1,875,826
Investments in affiliates	—		—		2,100,378		—			2,100,378
Other investments	—		—		1,145,588		—			1,145,588
Total investments	$	—	$	525,675	$	37,619,622	$	—		$	38,145,297
Cash and cash equivalents	3,531		265,369		2,761,188		—			3,030,088
Restricted cash	—		—		159,627		—			159,627
Investments in subsidiaries (2)	9,905,108		13,351,408		—		(23,256,516		)	—
Accrued investment income	10		2,291		267,920		(10		)	270,211
Deferred acquisition costs and value of business acquired	—		—		1,073,343		—			1,073,343
Ceded unearned premiums	—		—		2,311,619		—			2,311,619
Premiums receivable	—		—		7,078,700		—			7,078,700
Reinsurance balances receivable	—		—		1,079,821		—			1,079,821
Unpaid losses and loss expenses recoverable	—		—		6,962,787		—			6,962,787
Receivable from investments sold	—		—		195,837		—			195,837
Goodwill and other intangible assets	—		—		2,227,014		—			2,227,014
Deferred tax asset	—		—		301,322		—			301,322
Amounts due from subsidiaries/parent	39,908		—		67,755		(107,663		)	—
Other assets	14,454		32,151		907,937		—			954,542
Total assets	$	9,963,011	$	14,176,894	$	63,014,492	$	(23,364,189	)	$	63,790,208

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss expenses	$	—	$	—	$	29,988,337	$	—		$	29,988,337
Deposit liabilities	—		—		1,030,290		—			1,030,290
Future policy benefit reserves	—		—		3,656,859		—			3,656,859
Funds withheld on GreyCastle life retrocession arrangements	—		—		920,571		—			920,571
Unearned premiums	—		—		8,344,536		—			8,344,536
Notes payable and debt	—		3,210,063		—		—			3,210,063
Reinsurance balances payable	—		—		3,706,120		—			3,706,120
Payable for investments purchased	—		1,252		272,197		—			273,449
Deferred tax liability	—		—		107,157		—			107,157
Amounts due to subsidiaries/parent	—		67,765		39,898		(107,663		)	—
Other liabilities	23,164		35,785		965,367		—			1,024,316
Total liabilities	$	23,164	$	3,314,865	$	49,031,332	$	(107,663	)	$	52,261,698

Shareholders' Equity:
Shareholders' equity attributable to XL Group Ltd	$	9,939,847	$	9,904,608	$	13,351,408	$	(23,256,016	)	$	9,939,847
Non-controlling interest in equity of consolidated subsidiaries	—		957,421		631,752		(510		)	1,588,663
Total shareholders' equity	$	9,939,847	$	10,862,029	$	13,983,160	$	(23,256,526	)	$	11,528,510
Total liabilities and shareholders' equity	$	9,963,011	$	14,176,894	$	63,014,492	$	(23,364,189	)	$	63,790,208

____________


(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.


(2)	XL Group balance includes investment in $0.5 million of XLIT Series E Non-Cumulative Preference Ordinary Shares.



	December 31, 2016
Condensed Consolidating Balance Sheet (U.S. dollars in thousands, except share data)	XL Group (1)		XLIT		Other XL Group Subsidiaries		Consolidating Adjustments and Eliminations			XL Group Consolidated
ASSETS
Investments:
Total investments available for sale	$	—	$	638,236	$	31,280,890	$	—		$	31,919,126
Total investments trading	—		—		1,626,577		—			1,626,577
Investments in affiliates	—		—		2,177,645		—			2,177,645
Other investments	—		9		1,164,555		—			1,164,564
Total investments	$	—	$	638,245	$	36,249,667	$	—		$	36,887,912
Cash and cash equivalents	1,022		84,286		3,341,680		—			3,426,988
Restricted cash	—		—		153,504		—			153,504
Investments in subsidiaries	10,897,195		14,238,698		—		(25,135,893		)	—
Accrued investment income	55		2,981		281,385		(55		)	284,366
Deferred acquisition costs and value of business acquired	—		—		946,721		—			946,721
Ceded unearned premiums	—		—		1,687,864		—			1,687,864
Premiums receivable	—		—		5,522,976		—			5,522,976
Reinsurance balances receivable	—		—		577,479		—			577,479
Unpaid losses and loss expenses recoverable	—		—		5,491,297		—			5,491,297
Receivable from investments sold	—		—		128,411		—			128,411
Goodwill and other intangible assets	—		—		2,203,653		—			2,203,653
Deferred tax asset	—		—		310,542		—			310,542
Amounts due from subsidiaries/parent	42,780		—		72,962		(115,742		)	—
Other assets	15,188		40,108		757,093		—			812,389
Total assets	$	10,956,240	$	15,004,318	$	57,725,234	$	(25,251,690	)	$	58,434,102

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss expenses	$	—	$	—	$	25,939,571	$	—		$	25,939,571
Deposit liabilities	—		—		1,116,233		—			1,116,233
Future policy benefit reserves	—		—		3,506,047		—			3,506,047
Funds withheld on GreyCastle life retrocession arrangements	—		—		998,968		—			998,968
Unearned premiums	—		—		7,293,028		—			7,293,028
Notes payable and debt	—		2,647,677		—		—			2,647,677
Reinsurance balances payable	—		—		2,451,717		—			2,451,717
Payable for investments purchased	—		—		226,009		—			226,009
Deferred tax liability	—		—		77,271		—			77,271
Amounts due to subsidiaries/parent	—		72,962		42,780		(115,742		)	—
Other liabilities	17,728		41,984		1,157,190		—			1,216,902
Total liabilities	$	17,728	$	2,762,623	$	42,808,814	$	(115,742	)	$	45,473,423

Shareholders' Equity:
Shareholders' equity attributable to XL Group Ltd	$	10,938,512	$	10,897,195	$	14,238,698	$	(25,135,893	)	$	10,938,512
Non-controlling interest in equity of consolidated subsidiaries	—		1,344,500		677,722		(55		)	2,022,167
Total shareholders' equity	$	10,938,512	$	12,241,695	$	14,916,420	$	(25,135,948	)	$	12,960,679
Total liabilities and shareholders' equity	$	10,956,240	$	15,004,318	$	57,725,234	$	(25,251,690	)	$	58,434,102

____________


(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

Guarantor income statement



	Three Months Ended September 30, 2017
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands, except per share data)	XL Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Revenues:
Net premiums earned	$	—		$	—		$	2,620,902		$	—		$	2,620,902
Total net investment income	58			2,394			200,872			(545		)	202,779
Total net realized gains (losses) on investments	(213		)	25			43,249			213			43,274
Net realized and unrealized gains (losses) on derivative instruments	—			—			(20,434		)	—			(20,434		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(31,662		)	—			(31,662		)
Income (loss) from investment affiliates	—			—			57,656			—			57,656
Fee income and other	—			—			11,469			—			11,469
Total revenues	$	(155	)	$	2,419		$	2,882,052		$	(332	)	$	2,883,984
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	3,066,723		$	—		$	3,066,723
Claims and policy benefits	—			—			10,592			—			10,592
Acquisition costs	—			—			445,685			—			445,685
Operating expenses	407			724			408,225			—			409,356
Foreign exchange (gains) losses	738			7,020			47,259			—			55,017
Extinguishment of debt	—			1,582			—			—			1,582
Interest expense	—			39,897			(5,978		)	—			33,919
Total expenses	$	1,145		$	49,223		$	3,972,506		$	—		$	4,022,874
Income (loss) before income tax and income (loss) from operating affiliates	$	(1,300	)	$	(46,804	)	$	(1,090,454	)	$	(332	)	$	(1,138,890	)
Income (loss) from operating affiliates	—			—			4,872			—			4,872
Equity in net earnings (losses) of subsidiaries	(1,042,389		)	(1,001,592		)	—			2,043,981			—
Provision (benefit) for income tax	—			—			(60,132		)	—			(60,132		)
Net income (loss)	$	(1,043,689	)	$	(1,048,396	)	$	(1,025,450	)	$	2,043,649		$	(1,073,886	)
Non-controlling interests	—			(6,007		)	(23,858		)	(332		)	(30,197		)
Net income (loss) attributable to common shareholders	$	(1,043,689	)	$	(1,042,389	)	$	(1,001,592	)	$	2,043,981		$	(1,043,689	)

Comprehensive income (loss)	$	(995,926	)	$	(994,626	)	$	(953,829	)	$	1,915,721		$	(995,926	)

____________


(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.



	Three Months Ended September 30, 2016
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands, except per share data)	XL Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Revenues:
Net premiums earned	$	—		$	—		$	2,434,037		$	—		$	2,434,037
Total net investment income	75			2,463			206,323			910			209,771
Total net realized gains (losses) on investments	—			370			143,257			49			143,676
Net realized and unrealized gains (losses) on derivative instruments	—			—			5,490			—			5,490
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(225,610		)	—			(225,610		)
Income (loss) from investment affiliates	—			—			12,156			—			12,156
Fee income and other	—			—			8,600			—			8,600
Total revenues	$	75		$	2,833		$	2,584,253		$	959		$	2,588,120
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	1,491,803		$	—		$	1,491,803
Claims and policy benefits	—			—			5,875			—			5,875
Acquisition costs	—			—			403,888			—			403,888
Operating expenses	19,979			5,625			482,854			—			508,458
Foreign exchange (gains) losses	(180		)	32			(1,547		)	—			(1,695		)
(Gain) Loss on sale of subsidiary	—			—			(3,670		)	—			(3,670		)
Interest expense	10			35,320			14,115			—			49,445
Total expenses	$	19,809		$	40,977		$	2,393,318		$	—		$	2,454,104
Income (loss) before income tax and income (loss) from operating affiliates	$	(19,734	)	$	(38,144	)	$	190,935		$	959		$	134,016
Income (loss) from operating affiliates	—			—			12,410			—			12,410
Equity in net earnings (losses) of subsidiaries	90,335			164,390			—			(254,725		)	—
Provision (benefit) for income tax	—			—			17,749			—			17,749
Net income (loss)	$	70,601		$	126,246		$	185,596		$	(253,766	)	$	128,677
Non-controlling interests	—			35,911			22,240			(75		)	58,076
Net income (loss) attributable to common shareholders	$	70,601		$	90,335		$	163,356		$	(253,691	)	$	70,601

Comprehensive income (loss)	$	181,819		$	201,553		$	274,574		$	(476,127	)	$	181,819

____________


(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.



	Nine Months Ended September 30, 2017
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands, except per share data)	XL Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Revenues:
Net premiums earned	$	—		$	—		$	7,660,610		$	—		$	7,660,610
Total net investment income	152			6,810			605,637			(614		)	611,985
Total net realized gains (losses) on investments	(213		)	694			136,494			213			137,188
Net realized and unrealized gains (losses) on derivative instruments	—			—			(28,409		)	—			(28,409		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(116,359		)	—			(116,359		)
Income (loss) from investment affiliates	—			—			126,735			—			126,735
Fee income and other	—			—			35,355			—			35,355
Total revenues	$	(61	)	$	7,504		$	8,420,063		$	(401	)	$	8,427,105
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	6,179,262		$	—		$	6,179,262
Claims and policy benefits	—			—			25,478			—			25,478
Acquisition costs	—			—			1,315,138			—			1,315,138
Operating expenses	43,976			2,384			1,303,812			—			1,350,172
Foreign exchange (gains) losses	1,850			7,046			37,142			—			46,038
Extinguishment of debt	—			1,582			—			—			1,582
Interest expense	—			110,321			28,327			—			138,648
Total expenses	$	45,826		$	121,333		$	8,889,159		$	—		$	9,056,318
Income (loss) before income tax and income (loss) from operating affiliates	$	(45,887	)	$	(113,829	)	$	(469,096	)	$	(401	)	$	(629,213	)
Income (loss) from operating affiliates	—			—			61,185			—			61,185
Equity in net earnings (losses) of subsidiaries	(543,339		)	(399,228		)	—			942,567			—
Provision (benefit) for income tax	—			—			(18,034		)	—			(18,034		)
Net income (loss)	$	(589,226	)	$	(513,057	)	$	(389,877	)	$	942,166		$	(549,994	)
Non-controlling interests	—			30,282			9,351			(401		)	39,232
Net income (loss) attributable to common shareholders	$	(589,226	)	$	(543,339	)	$	(399,228	)	$	942,567		$	(589,226	)

Comprehensive income (loss)	$	(335,844	)	$	(289,957	)	$	(145,846	)	$	435,803		$	(335,844	)

____________


(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.



	Nine Months Ended September 30, 2016
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands, except per share data)	XL Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Revenues:
Net premiums earned	$	—		$	—		$	7,320,859		$	—		$	7,320,859
Total net investment income	251			7,344			621,554			1,896			631,045
Total net realized gains (losses) on investments	—			1,623			337,471			1,949			341,043
Net realized and unrealized gains (losses) on derivative instruments	—			—			2,774			—			2,774
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(691,432		)	—			(691,432		)
Income (loss) from investment affiliates	—			—			20,756			—			20,756
Fee income and other	—			—			27,724			—			27,724
Total revenues	$	251		$	8,967		$	7,639,706		$	3,845		$	7,652,769
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	4,506,674		$	—		$	4,506,674
Claims and policy benefits	—			—			16,294			—			16,294
Acquisition costs	—			—			1,227,675			—			1,227,675
Operating expenses	22,753			8,191			1,515,416			—			1,546,360
Foreign exchange (gains) losses	(633		)	(140		)	(53,841		)	—			(54,614		)
(Gain) Loss on sale of subsidiary	—			—			(3,670		)	—			(3,670		)
Interest expense	(5		)	105,666			51,825			—			157,486
Total expenses	$	22,115		$	113,717		$	7,260,373		$	—		$	7,396,205
Income (loss) before income tax and income (loss) from operating affiliates	$	(21,864	)	$	(104,750	)	$	379,333		$	3,845		$	256,564
Income (loss) from operating affiliates	—			—			46,478			—			46,478
Equity in net earnings (losses) of subsidiaries	157,512			337,284			—			(494,796		)	—
Provision (benefit) for income tax	(620		)	—			43,131			—			42,511
Net income (loss)	$	136,268		$	232,534		$	382,680		$	(490,951	)	$	260,531
Non-controlling interests	—			75,022			49,492			(251		)	124,263
Net income (loss) attributable to common shareholders	$	136,268		$	157,512		$	333,188		$	(490,700	)	$	136,268

Comprehensive income (loss)	$	969,457		$	990,701		$	1,166,377		$	(2,157,078	)	$	969,457

____________


(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

Guarantor cash flow



	Nine Months Ended September 30, 2017
Condensed Consolidating Statement of Cash Flows (U.S. dollars in thousands)	XL Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Cash flows provided by (used in) operating activities:
Net cash provided by (used in) operating activities	$	284,889		$	651,559		$	293,840		$	(1,046,474	)	$	183,814
Cash flows provided by (used in) investing activities:
Proceeds from sale of fixed maturities and short-term investments	$	—		$	164,364		$	11,190,012		$	—		$	11,354,376
Proceeds from redemption of fixed maturities and short-term investments	—			122,743			2,671,772			—			2,794,515
Proceeds from sale of equity securities	4,788			45,680			456,212			(49,791		)	456,889
Purchases of fixed maturities and short-term investments	—			(175,067		)	(14,281,279		)	—			(14,456,346		)
Purchases of equity securities	—			(45,582		)	(314,752		)	45,582			(314,752		)
Proceeds from sale of affiliates	—			—			375,628			—			375,628
Purchases of affiliates	—			—			(119,835		)	—			(119,835		)
Returns of capital from subsidiaries	406,683			—			—			(406,683		)	—
Change in restricted cash	—			—			(6,123		)	—			(6,123		)
Other, net	—			—			(37,147		)	—			(37,147		)
Net cash provided by (used in) investing activities	$	411,471		$	112,138		$	(65,512	)	$	(410,892	)	$	47,205
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common shares and exercise of stock options	$	49,640		$	—		$	—		$	—		$	49,640
Buybacks of common shares	(571,586		)	—			—			—			(571,586		)
Repurchase of preference shares	—			(370,698		)	(45,003		)	4,209			(411,492		)
Employee withholding on share-based compensation	—			—			(24,156		)	—			(24,156		)
Dividends paid on common shares	(171,905		)	(295,987		)	(750,000		)	1,045,987			(171,905		)
Return of capital	—			(406,683		)	—			406,683			—
Distributions to non-controlling interests	—			(49,648		)	(60,052		)	487			(109,213		)
Contributions from non-controlling interests	—			—			49,474			—			49,474
Proceeds from issuance of debt	—			558,311			—			—			558,311
Repayment of debt	—			(17,909		)				—			(17,909		)
Deposit liabilities	—			—			(34,407		)	—			(34,407		)
Net cash provided by (used in) financing activities	$	(693,851	)	$	(582,614	)	$	(864,144	)	$	1,457,366		$	(683,243	)
Effects of exchange rate changes on foreign currency cash	—			—			55,324			—			55,324
Increase (decrease) in cash and cash equivalents	$	2,509		$	181,083		$	(580,492	)	$	—		$	(396,900	)
Cash and cash equivalents – beginning of period	1,022			84,286			3,341,680			—			3,426,988
Cash and cash equivalents – end of period	$	3,531		$	265,369		$	2,761,188		$	—		$	3,030,088

____________


(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.



	Nine Months Ended September 30, 2016
Condensed Consolidating Statement of Cash Flows (U.S. dollars in thousands)	XL Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Cash flows provided by (used in) operating activities:
Net cash provided by (used in) operating activities	$	921,608		$	230,877		$	1,841,145		$	(2,315,848	)	$	677,782
Cash flows provided by (used in) investing activities:
Proceeds from sale of fixed maturities and short-term investments	$	—		$	300,452		$	9,864,257		$	(583,466	)	$	9,581,243
Proceeds from redemption of fixed maturities and short-term investments	—			65,881			2,944,277			—			3,010,158
Proceeds from sale of equity securities	—			—			411,330			—			411,330
Purchases of fixed maturities and short-term investments	—			(526,206		)	(11,614,305		)	583,466			(11,557,045		)
Purchases of equity securities	—			—			(611,086		)	—			(611,086		)
Proceeds from sale of affiliates	—			—			325,050			—			325,050
Purchases of affiliates	—			—			(556,548		)	—			(556,548		)
Purchase of subsidiaries, net of acquired cash	—			—			(92,893		)	—			(92,893		)
Proceeds from sale of subsidiary, net of cash sold	—			—			19,144			—			19,144
Returns of capital from subsidiaries	149,458			465,203			—			(614,661		)	—
Change in restricted cash	—			—			4,874			—			4,874
Other, net	—			—			193,392			—			193,392
Net cash provided by (used in) investing activities	$	149,458		$	305,330		$	887,492		$	(614,661	)	$	727,619
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common shares and exercise of stock options	$	5,735		$	—		$	—		$	—		$	5,735
Buybacks of common shares	(906,137		)	—			—			—			(906,137		)
Employee withholding on share-based compensation	—			—			(28,171		)	—			(28,171		)
Dividends paid on common shares	(169,346		)	(700,063		)	(1,615,785		)	2,315,848			(169,346		)
Return of capital	—			(149,458		)	(465,203		)	614,661			—
Distributions to non-controlling interests	—			(42,188		)	(51,282		)	—			(93,470		)
Contributions from non-controlling interests	—			—			6,394			—			6,394
Repayment of debt	—			—			(8,248		)	—			(8,248		)
Deposit liabilities	—			—			(63,488		)	—			(63,488		)
Net cash provided by (used in) financing activities	$	(1,069,748	)	$	(891,709	)	$	(2,225,783	)	$	2,930,509		$	(1,256,731	)
Effects of exchange rate changes on foreign currency cash	—			—			(11,629		)	—			(11,629		)
Increase (decrease) in cash and cash equivalents	$	1,318		$	(355,502	)	$	491,225		$	—		$	137,041
Cash and cash equivalents – beginning of period	11,557			369,997			2,874,682			—			3,256,236
Cash and cash equivalents – end of period	$	12,875		$	14,495		$	3,365,907		$	—		$	3,393,277

____________


(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.