Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	September 30, 2016
Condensed Consolidating Balance Sheet (U.S. dollars in thousands, except share data)	XL- Bermuda (1)		XL-Cayman		Other XL-Bermuda Subsidiaries		Consolidating Adjustments and Eliminations			XL-Bermuda Consolidated
ASSETS
Investments:
Total investments available for sale	$	—	$	676,964	$	32,948,108	$	—		$	33,625,072
Total investments trading	—		—		1,633,051		—			1,633,051
Investments in affiliates	—		—		2,118,489		—			2,118,489
Other investments	—		897		1,260,041		—			1,260,938
Total investments	$	—	$	677,861	$	37,959,689	$	—		$	38,637,550
Cash and cash equivalents	12,875		14,495		3,365,907		—			3,393,277
Restricted cash	—		—		150,118		—			150,118
Investments in subsidiaries	11,791,273		14,923,541		—		(26,714,814		)	—
Accrued investment income	65		3,350		282,154		(65		)	285,504
Deferred acquisition costs and value of business acquired	—		—		989,733		—			989,733
Ceded unearned premiums	—		—		1,917,127		—			1,917,127
Premiums receivable	—		—		5,925,969		—			5,925,969
Reinsurance balances receivable	—		—		524,343		—			524,343
Unpaid losses and loss expenses recoverable	—		—		5,481,882		—			5,481,882
Receivable from investments sold	—		—		105,781		—			105,781
Goodwill and other intangible assets	—		—		2,234,071		—			2,234,071
Deferred tax asset	—		—		219,905		—			219,905
Amounts due from subsidiaries/parent	—		196,014		173,821		(369,835		)	—
Other assets	2,294		40,938		863,558		—			906,790
Total assets	$	11,806,507	$	15,856,199	$	60,194,058	$	(27,084,714	)	$	60,772,050

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss expenses	$	—	$	—	$	26,170,383	$	—		$	26,170,383
Deposit liabilities	—		—		1,138,789		—			1,138,789
Future policy benefit reserves	—		—		3,721,451		—			3,721,451
Funds withheld on GreyCastle life retrocession arrangements	—		—		1,283,055		—			1,283,055
Unearned premiums	—		—		7,724,957		—			7,724,957
Notes payable and debt	—		2,647,000		—		—			2,647,000
Reinsurance balances payable	—		—		2,698,185		—			2,698,185
Payable for investments purchased	—		—		370,456		—			370,456
Deferred tax liability	—		—		108,996		—			108,996
Amounts due to subsidiaries/parent	173,821		—		196,014		(369,835		)	—
Other liabilities	20,520		73,426		1,221,952		—			1,315,898
Total liabilities	$	194,341	$	2,720,426	$	44,634,238	$	(369,835	)	$	47,179,170

Shareholders’ Equity:
Shareholders’ equity attributable to XL Group Ltd	$	11,612,166	$	11,791,273	$	14,923,541	$	(26,714,814	)	$	11,612,166
Non-controlling interest in equity of consolidated subsidiaries	—		1,344,500		636,279		(65		)	1,980,714
Total shareholders’ equity	$	11,612,166	$	13,135,773	$	15,559,820	$	(26,714,879	)	$	13,592,880
Total liabilities and shareholders’ equity	$	11,806,507	$	15,856,199	$	60,194,058	$	(27,084,714	)	$	60,772,050

____________


(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, "Basis of Preparation and Consolidation." The Company expects the net assets of XL-Ireland to ultimately be distributed to XL-Bermuda upon completion of the liquidation.



	December 31, 2015
Condensed Consolidating Balance Sheet (U.S. dollars in thousands, except share data)	XL- Ireland		XL-Cayman		Other XL-Ireland Subsidiaries		Consolidating Adjustments and Eliminations			XL-Ireland Consolidated
ASSETS
Investments:
Total investments available for sale	$	—	$	516,425	$	33,237,473	$	—		$	33,753,898
Total investments trading	—		—		1,296,029		—			1,296,029
Investments in affiliates	—		—		1,708,899		—			1,708,899
Other investments	—		877		1,432,180		—			1,433,057
Total investments	$	—	$	517,302	$	37,674,581	$	—		$	38,191,883
Cash and cash equivalents	11,557		369,997		2,874,682		—			3,256,236
Restricted cash	—		—		154,992		—			154,992
Investments in subsidiaries	11,648,673		15,836,651		—		(27,485,324		)	—
Accrued investment income	—		2,323		310,344		—			312,667
Deferred acquisition costs and value of business acquired	—		—		890,568		—			890,568
Ceded unearned premiums	—		—		1,821,793		—			1,821,793
Premiums receivable	—		—		4,712,493		—			4,712,493
Reinsurance balances receivable	—		—		418,666		—			418,666
Unpaid losses and loss expenses recoverable	—		—		5,262,706		—			5,262,706
Receivable from investments sold	—		—		231,158		—			231,158
Goodwill and other intangible assets	—		—		2,210,266		—			2,210,266
Deferred tax asset	—		—		282,311		—			282,311
Amounts due from subsidiaries/parent	33,417		—		1,054,177		(1,087,594		)	—
Other assets	2,748		44,570		889,881		—			937,199
Total assets	$	11,696,395	$	16,770,843	$	58,788,618	$	(28,572,918	)	$	58,682,938

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss expenses	$	—	$	—	$	25,439,744	$	—		$	25,439,744
Deposit liabilities	—		—		1,168,376		—			1,168,376
Future policy benefit reserves	—		—		4,163,500		—			4,163,500
Funds withheld on GreyCastle life retrocession arrangements	—		—		914,629		—			914,629
Unearned premiums	—		—		7,043,358		—			7,043,358
Notes payable and debt	—		2,644,970		—		—			2,644,970
Reinsurance balances payable	—		—		2,117,727		—			2,117,727
Payable for investments purchased	—		—		130,060		—			130,060
Deferred tax liability	—		—		120,651		—			120,651
Amounts due to subsidiaries/parent	—		1,087,594		—		(1,087,594		)	—
Other liabilities	19,316		45,106		1,221,038		—			1,285,460
Total liabilities	$	19,316	$	3,777,670	$	42,319,083	$	(1,087,594	)	$	45,028,475

Shareholders’ Equity:
Shareholders’ equity attributable to XL Group plc	$	11,677,079	$	11,648,673	$	15,836,651	$	(27,485,324	)	$	11,677,079
Non-controlling interest in equity of consolidated subsidiaries	—		1,344,500		632,884		—			1,977,384
Total shareholders’ equity	$	11,677,079	$	12,993,173	$	16,469,535	$	(27,485,324	)	$	13,654,463
Total liabilities and shareholders’ equity	$	11,696,395	$	16,770,843	$	58,788,618	$	(28,572,918	)	$	58,682,938

Guarantor income statement



	Three Months Ended September 30, 2016
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands, except per share data)	XL- Bermuda (1)			XL-Cayman			Other XL-Bermuda Subsidiaries			Consolidating Adjustments and Eliminations			XL-Bermuda 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 fund 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
Exchange (gains) losses	(180		)	32			(1,547		)	—			(1,695		)
Loss (Gain) 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
Gain on sale of operating affiliate	—			—			—			—			—
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, "Basis of Preparation and Consolidation." The Company expects the net assets of XL-Ireland to ultimately be distributed to XL-Bermuda upon completion of the liquidation.



	Three Months Ended September 30, 2015
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands, except per share data)	XL- Ireland			XL-Cayman			Other XL-Ireland Subsidiaries			Consolidating Adjustments and Eliminations			XL-Ireland Consolidated
Revenues:
Net premiums earned	$	—		$	—		$	2,423,552		$	—		$	2,423,552
Total net investment income	20			2,522			222,006			598			225,146
Total net realized gains (losses) on investments	—			10,291			51,115			(9,999		)	51,407
Net realized and unrealized gains (losses) on derivative instruments	—			—			(7,903		)	—			(7,903		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(126,140		)	—			(126,140		)
Income (loss) from investment fund affiliates	—			—			(3,715		)	—			(3,715		)
Fee income and other	—			—			7,355			—			7,355
Total revenues	$	20		$	12,813		$	2,566,270		$	(9,401	)	$	2,569,702
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	1,464,285		$	—		$	1,464,285
Claims and policy benefits	—			—			22,579			—			22,579
Acquisition costs	—			—			409,173			—			409,173
Operating expenses	34,514			2,289			533,339			—			570,142
Exchange (gains) losses	(16		)	135			11,542			—			11,661
Interest expense	9			35,623			16,297			—			51,929
Total expenses	$	34,507		$	38,047		$	2,457,215		$	—		$	2,529,769
Income (loss) before income tax and income (loss) from operating affiliates	$	(34,487	)	$	(25,234	)	$	109,055		$	(9,401	)	$	39,933
Income (loss) from operating affiliates	—			—			8,196			—			8,196
Gain on sale of operating affiliate	—			—			—			—			—
Equity in net earnings (losses) of subsidiaries	61,769			122,593			—			(184,362		)	—
Provision (benefit) for income tax	—			—			(37,042		)	—			(37,042		)
Net income (loss)	$	27,282		$	97,359		$	154,293		$	(193,763	)	$	85,171
Non-controlling interests	—			35,590			22,319			(20		)	57,889
Net income (loss) attributable to common shareholders	$	27,282		$	61,769		$	131,974		$	(193,743	)	$	27,282

Comprehensive income (loss)	$	(93,810	)	$	(59,323	)	$	10,882		$	48,441		$	(93,810	)



	Nine Months Ended September 30, 2016
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands, except per share data)	XL- Bermuda (1)			XL-Cayman			Other XL-Bermuda Subsidiaries			Consolidating Adjustments and Eliminations			XL-Bermuda 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 fund 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
Exchange (gains) losses	(633		)	(140		)	(53,841		)	—			(54,614		)
Loss (Gain) 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
Gain on sale of operating affiliate	—			—			—			—			—
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, "Basis of Preparation and Consolidation." The Company expects the net assets of XL-Ireland to ultimately be distributed to XL-Bermuda upon completion of the liquidation.



	Nine Months Ended September 30, 2015
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands, except per share data)	XL- Ireland			XL-Cayman			Other XL-Ireland Subsidiaries			Consolidating Adjustments and Eliminations			XL-Ireland Consolidated
Revenues:
Net premiums earned	$	—		$	—		$	5,839,605		$	—		$	5,839,605
Total net investment income	154			8,222			645,776			2,711			656,863
Total net realized gains (losses) on investments	—			14,092			148,908			(8,735		)	154,265
Net realized and unrealized gains (losses) on derivative instruments	—			12,365			44,762			—			57,127
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(116,333		)	—			(116,333		)
Income (loss) from investment fund affiliates	—			—			62,991			—			62,991
Fee income and other	—			—			23,095			—			23,095
Total revenues	$	154		$	34,679		$	6,648,804		$	(6,024	)	$	6,677,613
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	3,385,307		$	—		$	3,385,307
Claims and policy benefits	—			—			64,047			—			64,047
Acquisition costs	—			—			904,486			—			904,486
Operating expenses	40,230			7,731			1,355,191			—			1,403,152
Exchange (gains) losses	(287		)	117			49,595			—			49,425
Interest expense	11			108,097			44,926			—			153,034
Total expenses	$	39,954		$	115,945		$	5,803,552		$	—		$	5,959,451
Income (loss) before income tax and income (loss) from operating affiliates	$	(39,800	)	$	(81,266	)	$	845,252		$	(6,024	)	$	718,162
Income (loss) from operating affiliates	—			—			40,326			—			40,326
Gain on sale of operating affiliate	—			—			340,407			—			340,407
Equity in net earnings (losses) of subsidiaries	1,018,186			1,173,783			—			(2,191,969		)	—
Provision (benefit) for income tax	(216		)	245			20,106			—			20,135
Net income (loss)	$	978,602		$	1,092,272		$	1,205,879		$	(2,197,993	)	$	1,078,760
Non-controlling interests	—			74,086			26,226			(154		)	100,158
Net income (loss) attributable to common shareholders	$	978,602		$	1,018,186		$	1,179,653		$	(2,197,839	)	$	978,602

Comprehensive income (loss)	$	449,226		$	488,810		$	650,277		$	(1,139,087	)	$	449,226

Guarantor cash flow



	Nine Months Ended September 30, 2016
Condensed Consolidating Statement of Cash Flows (U.S. dollars in thousands)	XL- Bermuda (1)			XL-Cayman			Other XL-Bermuda Subsidiaries			Consolidating Adjustments and Eliminations			XL-Bermuda Consolidated
Cash flows provided by (used in) operating activities:
Net cash provided by (used in) operating activities	$	921,608		$	230,877		$	1,812,974		$	(2,315,848	)	$	649,611
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		)
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	)	$	(2,197,612	)	$	2,930,509		$	(1,228,560	)
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, "Basis of Preparation and Consolidation." The Company expects the net assets of XL-Ireland to ultimately be distributed to XL-Bermuda upon completion of the liquidation.



	Nine Months Ended September 30, 2015
Condensed Consolidating Statement of Cash Flows (U.S. dollars in thousands)	XL- Ireland			XL-Cayman			Other XL-Ireland Subsidiaries			Consolidating Adjustments and Eliminations			XL-Ireland Consolidated
Cash flows provided by (used in) operating activities:
Net cash provided by (used in) operating activities	$	319,352		$	1,422,263		$	(959,067	)	$	(273,048	)	$	509,500
Cash flows provided by (used in) investing activities:
Proceeds from sale of fixed maturities and short-term investments	$	—		$	1,461,428		$	9,467,177		$	(359,897	)	$	10,568,708
Proceeds from redemption of fixed maturities and short-term investments	—			161,989			2,625,881			—			2,787,870
Proceeds from sale of equity securities	—			—			443,941			—			443,941
Purchases of fixed maturities and short-term investments	—			(1,174,294		)	(11,906,540		)	359,897			(12,720,937		)
Purchases of equity securities	—			—			(436,622		)	—			(436,622		)
Proceeds from sale of affiliates	—			—			724,382			—			724,382
Purchases of affiliates	—			—			(94,745		)	—			(94,745		)
Purchase of subsidiaries, net of acquired cash	(2,287,579		)	(2,317,699		)	1,267,564			2,317,699			(1,020,015		)
Proceeds from sale of subsidiary, net of cash sold	2,317,699			—			—			(2,317,699		)	—
Returns of capital from subsidiaries	65,037			—			—			(65,037		)	—
Change in restricted cash	—			—			(147,810		)	—			(147,810		)
Other, net	—			—			(138,168		)	—			(138,168		)
Net cash provided by (used in) investing activities	$	95,157		$	(1,868,576	)	$	1,805,060		$	(65,037	)	$	(33,396	)
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common shares and exercise of stock options	$	7,904		$	—		$	—		$	—		$	7,904
Buybacks of common shares	(292,269		)	—			—			—			(292,269		)
Dividends paid on common shares	(149,030		)	(273,048		)	—			273,048			(149,030		)
Return of capital	—			(65,037		)	—			65,037			—
Distributions to non-controlling interests	—			(41,490		)	(39,151		)	—			(80,641		)
Contributions from non-controlling interests	—			—			10,292			—			10,292
Proceeds from issuance of debt	—			980,600			—			—			980,600
Net proceeds from affiliated notional cash pooling programs (1)	—			(43,293		)	—			43,293			—
Deposit liabilities	—			—			(79,944		)	—			(79,944		)
Net cash provided by (used in) financing activities	$	(433,395	)	$	557,732		$	(108,803	)	$	381,378		$	396,912
Effects of exchange rate changes on foreign currency cash	—			—			(54,760		)	—			(54,760		)
Increase (decrease) in cash and cash equivalents	$	(18,886	)	$	111,419		$	682,430		$	43,293		$	818,256
Cash and cash equivalents – beginning of period	22,443			86,263			2,456,401			(43,293		)	2,521,814
Cash and cash equivalents – end of period	$	3,557		$	197,682		$	3,138,831		$	—		$	3,340,070

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(1)	Net proceeds from affiliated notional cash pooling arrangements reflect the net impact of bank transfers to settle overdraft positions within the Company's multi-currency cash pool.