Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Guarantor balance sheet

	March 31, 2017
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	$	—	$	594,823	$	31,411,629	$	—		$	32,006,452
Total investments trading	—		—		1,700,862		—			1,700,862
Investments in affiliates	—		—		2,172,611		—			2,172,611
Other investments	—		—		1,150,492		—			1,150,492
Total investments	$	—	$	594,823	$	36,435,594	$	—		$	37,030,417
Cash and cash equivalents	1,080		241,858		3,109,713		—			3,352,651
Restricted cash	—		—		160,523		—			160,523
Investments in subsidiaries (2)	11,195,738		14,206,264		—		(25,402,002		)	—
Accrued investment income	74		2,985		259,252		(74		)	262,237
Deferred acquisition costs and value of business acquired	—		—		1,161,159		—			1,161,159
Ceded unearned premiums	—		—		2,501,294		—			2,501,294
Premiums receivable	—		—		6,746,116		—			6,746,116
Reinsurance balances receivable	—		—		641,720		—			641,720
Unpaid losses and loss expenses recoverable	—		—		5,685,623		—			5,685,623
Receivable from investments sold	—		—		95,344		—			95,344
Goodwill and other intangible assets	—		—		2,208,612		—			2,208,612
Deferred tax asset	—		—		302,301		—			302,301
Amounts due from subsidiaries/parent	—		174,871		213,477		(388,348		)	—
Other assets	16,134		35,529		824,959		—			876,622
Total assets	$	11,213,026	$	15,256,330	$	60,345,687	$	(25,790,424	)	$	61,024,619
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss expenses	$	—	$	—	$	26,445,124	$	—		$	26,445,124
Deposit liabilities	—		—		1,121,194		—			1,121,194
Future policy benefit reserves	—		—		3,520,069		—			3,520,069
Funds withheld on GreyCastle life retrocession arrangements	—		—		954,327		—			954,327
Unearned premiums	—				8,581,973		—			8,581,973
Notes payable and debt	—		2,648,353		—		—			2,648,353
Reinsurance balances payable	—		—		3,325,748		—			3,325,748
Payable for investments purchased	—		—		211,880		—			211,880
Deferred tax liability	—		—		89,862		—			89,862
Amounts due to subsidiaries/parent	213,477		—		174,871		(388,348		)	—
Other liabilities	24,665		67,739		1,033,059		—			1,125,463
Total liabilities	$	238,142	$	2,716,092	$	45,458,107	$	(388,348	)	$	48,023,993
Shareholders’ Equity:
Shareholders’ equity attributable to XL Group Ltd	$	10,974,884	$	11,190,238	$	14,206,264	$	(25,396,502	)	$	10,974,884
Non-controlling interest in equity of consolidated subsidiaries	—		1,350,000		681,316		(5,574		)	2,025,742
Total shareholders’ equity	$	10,974,884	$	12,540,238	$	14,887,580	$	(25,402,076	)	$	13,000,626
Total liabilities and shareholders’ equity	$	11,213,026	$	15,256,330	$	60,345,687	$	(25,790,424	)	$	61,024,619

____________

(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 ultimately be distributed to XL-Bermuda upon completion of the liquidation.

(2) XL-Bermuda balance includes investment in $5.5 million of XL-Cayman Series D Preference Ordinary Shares and XL-Cayman Series E Non-Cumulative Preference Ordinary Shares.

	December 31, 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	$	—	$	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 ultimately be distributed to XL-Bermuda upon completion of the liquidation.

Guarantor income statement

	Three Months Ended March 31, 2017
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	$	—		$	—		$	2,522,791		$	—		$	2,522,791
Total net investment income	83			2,313			198,219			(83		)	200,532
Total net realized gains (losses) on investments	—			(777		)	38,063			—			37,286
Net realized and unrealized gains (losses) on derivative instruments	—			—			(7,069		)	—			(7,069		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(50,101		)	—			(50,101		)
Income (loss) from investment fund affiliates	—			—			38,261			—			38,261
Fee income and other	—			—			13,661			—			13,661
Total revenues	$	83		$	1,536		$	2,753,825		$	(83	)	$	2,755,361
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	1,583,456		$	—		$	1,583,456
Claims and policy benefits	—			—			7,291			—			7,291
Acquisition costs	—			—			435,869			—			435,869
Operating expenses	16,180			509			451,349			—			468,038
Exchange (gains) losses	176			1			(3,513		)	—			(3,336		)
Interest expense	—			35,147			15,564			—			50,711
Total expenses	$	16,356		$	35,657		$	2,490,016		$	—		$	2,542,029
Income (loss) before income tax and income (loss) from operating affiliates	$	(16,273	)	$	(34,121	)	$	263,809		$	(83	)	$	213,332
Income (loss) from operating affiliates	—			—			13,609			—			13,609
Equity in net earnings (losses) of subsidiaries	169,116			239,526			—			(408,642		)	—
Provision (benefit) for income tax	—			—			13,092			—			13,092
Net income (loss)	$	152,843		$	205,405		$	264,326		$	(408,725	)	$	213,849
Non-controlling interests	—			36,289			24,800			(83		)	61,006
Net income (loss) attributable to common shareholders	$	152,843		$	169,116		$	239,526		$	(408,642	)	$	152,843
Comprehensive income (loss)	$	282,271		$	298,544		$	368,954		$	(667,498	)	$	282,271

____________

(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 ultimately be distributed to XL-Bermuda upon completion of the liquidation.

	Three Months Ended March 31, 2016
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	$	—		$	—		$	2,354,610		$	—		$	2,354,610
Total net investment income	113			1,785			203,307			681			205,886
Total net realized gains (losses) on investments	—			277			90,940			1,533			92,750
Net realized and unrealized gains (losses) on derivative instruments	—			—			(3,622		)	—			(3,622		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(236,080		)	—			(236,080		)
Income (loss) from investment fund affiliates	—			—			(4,579		)	—			(4,579		)
Fee income and other	—			—			8,262			—			8,262
Total revenues	$	113		$	2,062		$	2,412,838		$	2,214		$	2,417,227
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	1,382,485		$	—		$	1,382,485
Claims and policy benefits	—			—			4,937			—			4,937
Acquisition costs	—			—			403,267			—			403,267
Operating expenses	3,274			1,495			510,612			—			515,381
Exchange (gains) losses	17			(36		)	(33,800		)	—			(33,819		)
Interest expense	(6		)	35,169			17,140			—			52,303
Total expenses	$	3,285		$	36,628		$	2,284,641		$	—		$	2,324,554
Income (loss) before income tax and income (loss) from operating affiliates	$	(3,172	)	$	(34,566	)	$	128,197		$	2,214		$	92,673
Income (loss) from operating affiliates	—			—			12,650			—			12,650
Equity in net earnings (losses) of subsidiaries	24,437			94,780			—			(119,217		)	—
Provision (benefit) for income tax	(620		)	—			22,915			—			22,295
Net income (loss)	$	21,885		$	60,214		$	117,932		$	(117,003	)	$	83,028
Non-controlling interests	—			35,777			25,366			—			61,143
Net income (loss) attributable to common shareholders	$	21,885		$	24,437		$	92,566		$	(117,003	)	$	21,885
Comprehensive income (loss)	$	429,826		$	432,378		$	500,507		$	(932,885	)	$	429,826

Guarantor cash flow

	Three Months Ended March 31, 2017
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	$	235,642		$	118,694		$	(1,833	)	$	(400,000	)	$	(47,497	)
Cash flows provided by (used in) investing activities:
Proceeds from sale of fixed maturities and short-term investments	$	—		$	547		$	2,491,458		$	—		$	2,492,005
Proceeds from redemption of fixed maturities and short-term investments	—			44,453			1,183,903			—			1,228,356
Proceeds from sale of equity securities	—			677			45,702			—			46,379
Purchases of fixed maturities and short-term investments	—			(3,098		)	(3,629,909		)	—			(3,633,007		)
Purchases of equity securities	—			—			(47,967		)	—			(47,967		)
Proceeds from sale of affiliates	—			—			168,237			—			168,237
Purchases of affiliates	—			—			(35,926		)	—			(35,926		)
Change in restricted cash	—			—			(7,019		)	—			(7,019		)
Other, net	—			—			23,429			—			23,429
Net cash provided by (used in) investing activities	$	—		$	42,579		$	191,908		$	—		$	234,487
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common shares and exercise of stock options	$	23,296		$	—		$	—		$	—		$	23,296
Buybacks of common shares	(200,488		)	—			—			—			(200,488		)
Employee withholding on share-based compensation	—			—			(22,871		)	—			(22,871		)
Dividends paid on common shares	(58,392		)	—			(400,000		)	400,000			(58,392		)
Distributions to non-controlling interests	—			(3,701		)	(21,699		)	—			(25,400		)
Contributions from non-controlling interests	—			—			26			—			26
Deposit liabilities	—			—			(7,771		)	—			(7,771		)
Net cash provided by (used in) financing activities	$	(235,584	)	$	(3,701	)	$	(452,315	)	$	400,000		$	(291,600	)
Effects of exchange rate changes on foreign currency cash	—			—			30,273			—			30,273
Increase (decrease) in cash and cash equivalents	$	58		$	157,572		$	(231,967	)	$	—		$	(74,337	)
Cash and cash equivalents – beginning of period	1,022			84,286			3,341,680			—			3,426,988
Cash and cash equivalents – end of period	$	1,080		$	241,858		$	3,109,713		$	—		$	3,352,651

____________

(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 ultimately be distributed to XL-Bermuda upon completion of the liquidation.

	Three Months Ended March 31, 2016
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	$	410,395		$	(48,205	)	$	(506,229	)	$	—		$	(144,039	)
Cash flows provided by (used in) investing activities:
Proceeds from sale of fixed maturities and short-term investments	$	—		$	132,687		$	3,815,844		$	(176,454	)	$	3,772,077
Proceeds from redemption of fixed maturities and short-term investments	—			26,181			923,040			—			949,221
Proceeds from sale of equity securities	—			—			62,895			—			62,895
Purchases of fixed maturities and short-term investments	—			(190,119		)	(4,312,014		)	176,454			(4,325,679		)
Purchases of equity securities	—			—			(55,411		)	—			(55,411		)
Proceeds from sale of affiliates	—			—			41,538			—			41,538
Purchases of affiliates	—			—			(247,049		)	—			(247,049		)
Purchase of subsidiaries, net of acquired cash	—			—			(69,745		)	—			(69,745		)
Change in restricted cash	—			—			(6,027		)	—			(6,027		)
Other, net	—			—			82,141			—			82,141
Net cash provided by (used in) investing activities	$	—		$	(31,251	)	$	235,212		$	—		$	203,961
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common shares and exercise of stock options	$	491		$	—		$	—		$	—		$	491
Buybacks of common shares	(355,901		)	—			—			—			(355,901		)
Employee withholding on share-based compensation	—			—			(27,074		)	—			(27,074		)
Dividends paid on common shares	(57,861		)	—			—			—			(57,861		)
Distributions to non-controlling interests	—			(3,077		)	(24,780		)	—			(27,857		)
Contributions from non-controlling interests	—			—			883			—			883
Deposit liabilities	—			—			(8,546		)	—			(8,546		)
Net cash provided by (used in) financing activities	$	(413,271	)	$	(3,077	)	$	(59,517	)	$	—		$	(475,865	)
Effects of exchange rate changes on foreign currency cash	—			—			(19,396		)	—			(19,396		)
Increase (decrease) in cash and cash equivalents	$	(2,876	)	$	(82,533	)	$	(349,930	)	$	—		$	(435,339	)
Cash and cash equivalents – beginning of period	11,557			369,997			2,874,682			—			3,256,236
Cash and cash equivalents – end of period	$	8,681		$	287,464		$	2,524,752		$	—		$	2,820,897