EX-12 2 xlgroup-09302017xex_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

 
Nine Months Ended
(U.S. dollars in thousands, except ratios)
2017
 
2016
Earnings:
 
 
 
Pre-tax income (loss) from continuing operations
$
(755,948
)
 
$
235,808

Fixed charges
217,813

 
293,087

Distributed income of equity investees
121,463

 
74,133

Subtotal
$
(416,672
)
 
$
603,028

Less: Non-controlling interests
(25,953
)
 
5,916

Less: Preference share dividends
65,185

 
118,347

Total earnings (loss)
$
(455,904
)
 
$
478,765

 
 
 
 
Fixed charges:
 
 
 
Interest costs
$
123,181

 
$
128,371

Accretion of deposit liabilities
15,467

 
29,115

Rental expense at 30% (1)
13,980

 
17,254

Total fixed charges
$
152,628

 
$
174,740

Preference share dividends
65,185

 
118,347

Total fixed charges and preference dividends
$
217,813

 
$
293,087

 
 
 
 
Ratio of earnings to fixed charges
N/A

 
2.7

 
 
 
 
Ratio of earnings to combined fixed charges and preference dividends
N/A

 
1.6

 
 
 
 
Deficiency - fixed charges only
$
608,532

 
N/A

 
 
 
 
Deficiency - fixed charges and preference dividends
$
673,717

 
N/A

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