EX-12 2 xlgroup-12312016xex_12.htm EXHIBIT 12 Exhibit


Exhibit 12
XL GROUP LTD
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS

 
Twelve Months Ended
(U.S. dollars in thousands, except ratios)
2016
 
2015
Earnings:
 
 
 
Pre-tax income (loss) from continuing operations
$
497,119

 
$
1,176,118

Fixed charges
355,348

 
324,134

Distributed income of equity investees
92,410

 
658,172

Subtotal
$
944,877

 
$
2,158,424

Less: Non-controlling interests
7,309

 
7,466

Preference share dividends
121,868

 
98,721

Total earnings (loss)
$
815,700

 
$
2,052,237

 
 
 
 
Fixed charges:
 
 
 
Interest costs
$
170,058

 
$
163,021

Accretion of deposit liabilities
39,705

 
42,194

Rental expense at 30% (1)
23,717

 
20,198

Total fixed charges
$
233,480

 
$
225,413

Preference share dividends
121,868

 
98,721

Total fixed charges and preference dividends
$
355,348

 
$
324,134

 
 
 
 
Ratio of earnings to fixed charges
3.5

 
9.1

 
 
 
 
Ratio of earnings to combined fixed charges and preference dividends
2.3

 
6.3

 
 
 
 
Deficiency - fixed charges only
 N/A

 
N/A

 
 
 
 
Deficiency - fixed charges and preference dividends
 N/A

 
N/A

_______________
(1)
30% represents a reasonable approximation of the interest factor.