Acquisitions and Disposals (Tables)

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Calculation of the consideration transferred in acquisition

The calculation of the consideration transferred to acquire Catlin Shares is as follows:

(In thousands, except per share data)
Catlin Shares outstanding as of April 30, 2015 that received share consideration (including the dilutive effect of warrants)	384,118
Exchange ratio per the Implementation Agreement	0.130
XL Share issuance to Catlin shareholders	49,935
Closing price per XL share on April 30, 2015 (1)	$	37.08
XL Share issuance consideration	$	1,851,601
Catlin Shares outstanding as of April 30, 2015 that received cash consideration (including the dilutive effect of warrants)	384,118
Cash price component, per Catlin Share in GBP	£	3.88
Cash consideration, in GBP	£	1,490,377
Foreign exchange rate: GBP/USD on April 30, 2015	$	1.5349
Cash consideration	$	2,287,579
Total acquisition consideration	$	4,139,180

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(1) The closing market price of XL Shares on the Acquisition Date represents the fair value of XL shares issued as part of the Acquisition Consideration.

Schedule of assets acquired and liabilities assumed

The following table summarizes the fair values of the assets acquired and liabilities assumed at the Acquisition Date:

(U.S. dollars in thousands)
ASSETS
Fixed maturities, at fair value	$	6,266,489
Short-term investments, at fair value	634,599
Equity investments, at fair value	236,230
Investment in affiliates	216,843
Other investments	386,828
Total investments	$	7,740,989
Cash and cash equivalents (1)	1,267,565
Accrued investment income	35,063
Premiums receivable	2,545,188
Unpaid losses and loss expenses recoverable	1,493,267
Reinsurance balances receivable	299,579
Ceded unearned premiums	1,143,852
Deferred acquisition costs and value of business acquired	679,259
Intangible assets	988,000
Receivable from investments sold	9,633
Other assets (2)	306,686
Total assets	$	16,509,081
LIABILITIES
Unpaid losses and loss expenses	$	6,933,144
Unearned premiums	3,742,234
Reinsurance balances payable	1,441,749
Notes payable and debt	82,066
Payable for investments purchased	34,149
Deferred tax liability (2)	82,783
Other liabilities (2)	285,481
Total liabilities	$	12,601,606
Net assets acquired before non-controlling interest	$	3,907,475
Non-controlling interest in equity of consolidated subsidiaries	562,285
Net assets acquired	$	3,345,190
Acquisition consideration	$	4,139,180
Goodwill (2)	$	793,990

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(1)    Includes Restricted cash.

(2) Includes an increase of $15.9 million to goodwill from the amount initially recorded at June 30, 2015, as a result of several tax-related adjustments, including a decrease in other assets of $7.5 million, a decrease in deferred tax liability of $11.3 million, and an increase in other liabilities of $19.8 million. See discussion of "Income Taxes" below for further information.

Schedule of restructuring costs

(U.S. dollars in thousands)	Severance related costs		Retention and other compensation costs		Facilities-related costs		Consulting and other		Total
Costs incurred in 2015	$	47,185	$	35,310	$	14,744	$	59,129	$	156,368
2015 payments	31,058		18,341		13,926		35,754		99,079
Liabilities at December 31, 2015	$	16,127	$	16,969	$	818	$	23,375	$	57,289

Results since acquisition

(U.S. dollars in thousands)	May 1, 2015 to December 31, 2015
Total revenues - see comments above	$	2,791,789
Net income (loss) - see comments above	$	103,637

Pro Forma information

The following table presents unaudited pro forma consolidated information for the years ended December 31, 2015 and 2014 and assumes the Catlin Acquisition occurred on January 1, 2014. The pro forma financial information is presented for informational purposes only and does not necessarily reflect the results that would have occurred had the acquisition taken place on January 1, 2014, nor is it necessarily indicative of future results. Significant adjustments used to determine pro forma results include amortization of intangible assets and amortization of fair value adjustments discussed above, and the corresponding income tax effects. Non-recurring transaction related costs noted above have been included in the unaudited pro forma results for the year ended December 31, 2014.

	Unaudited Pro Forma
(In thousands, except per share data)	2015		2014
Total revenues	$	10,628,915	$	10,938,216
Net income attributable to ordinary shareholders	1,221,497		475,914
Earnings (loss) per ordinary share and ordinary share equivalent – basic	4.03		1.50
Earnings (loss) per ordinary share and ordinary share equivalent – diluted	3.97		1.48

Impact of Life Retro Arrangements

The impact of the GreyCastle Life Retro Arrangements on the Company's results for the year ended December 31, 2015 and the period beginning from the completion of the transaction on May 30, 2014 through December 31, 2014 was as follows:

Impact of GreyCastle Life Retro Arrangements				May 30 to December 31,
(U.S. dollars in thousands)	2015			2014
Underwriting profit (loss) (1)	$	605		$	11,649
Net investment income - Life Funds Withheld Assets	187,489			129,575
Net realized gains (losses) on investments sold - Life Funds Withheld Assets	223,272			5,067
Net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets	(27,734		)	(9		)
OTTI on investments - Life Funds Withheld Assets	(13,357		)	(20,587		)
Exchange (gains) losses	4,788			10,099
Other income and expenses	2,280			(1,610		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	(151,691		)	(488,222		)
Net income (loss)	$	225,652		$	(354,038	)
Change in net unrealized gains (losses) on investments - Life Funds Withheld Assets, net of tax	(421,604		)	274,083
Change in adjustments related to future policy benefit reserves, net of tax	170,688			74,009
Change in cumulative translation adjustment - Life Funds Withheld Assets, net of tax	25,869			17,595
Total changes to other comprehensive income as a result of GreyCastle Life Retro Arrangements (2)	$	(225,047	)	$	365,687
Comprehensive income (loss)	$	605		$	11,649

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(1) The underwriting profit of $0.6 million relates to a premium adjustment relating to the GreyCastle Life Retro Arrangements transaction, which was completed on May 30, 2014. Excluding this transaction, the impact to comprehensive income relating to the GreyCastle Life Retro Arrangements was nil for the years ended December 31, 2015 and 2014.