Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Income Statements, Captions [Line Items]



	March 31, 2018
Condensed Consolidating Balance Sheet (U.S. dollars in thousands)	XL-Group (1)		XLIT		Other XL Group Subsidiaries		Consolidating Adjustments and Eliminations			XL Group Consolidated
ASSETS
Investments:
Fixed maturities AFS	$	—	$	449,368	$	30,207,260	$	—		$	30,656,628
Short-term investments AFS	—		—		500,170		—			500,170
Fixed maturities trading	—		—		2,084,251		—			2,084,251
Short-term investments trading	—		—		7,425		—			7,425
Equity securities	—		—		637,872		—			637,872
Investments in affiliates	—		—		1,900,105		—			1,900,105
Other investments	—		—		1,186,983		—			1,186,983
Total investments	$	—	$	449,368	$	36,524,066	$	—		$	36,973,434
Cash and cash equivalents	20,360		233,948		3,230,455		—			3,484,763
Restricted cash	—		—		155,023		—			155,023
Investments in subsidiaries	9,632,524		13,277,715		—		(22,910,239		)	—
Accrued investment income	11		2,133		263,557		—			265,701
Deferred acquisition costs and value of business acquired	—		—		1,317,797		—			1,317,797
Ceded unearned premiums	—		—		2,950,077		—			2,950,077
Premiums receivable	—		—		7,988,469		—			7,988,469
Reinsurance balances receivable	—		—		1,210,620		—			1,210,620
Unpaid losses and loss expenses recoverable	—		—		7,271,013		—			7,271,013
Receivable from investments sold	—		15,000		243,084		—			258,084
Goodwill and other intangible assets	—		—		2,230,506		—			2,230,506
Deferred tax asset	—		—		356,667		—			356,667
Amounts due from subsidiaries/parent	57,632		—		70,582		(128,214		)	—
Other assets	1,916		27,611		846,282		—			875,809
Total assets	$	9,712,443	$	14,005,775	$	64,658,198	$	(23,038,453	)	$	65,337,963

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss expenses	$	—	$	—	$	29,701,568	$	—		$	29,701,568
Deposit liabilities	—		—		982,963		—			982,963
Future policy benefit reserves	—		—		3,680,958		—			3,680,958
Funds withheld on GreyCastle life retrocession arrangements	—		—		989,140		—			989,140
Unearned premiums	—		—		9,687,293		—			9,687,293
Notes payable and debt	—		3,240,461		—		—			3,240,461
Reinsurance balances payable	—		—		4,432,331		—			4,432,331
Payable for investments purchased	—		—		317,339		—			317,339
Deferred tax liability	—		1,949		56,046		—			57,995
Amounts due to subsidiaries/parent	—		122,328		5,886		(128,214		)	—
Other liabilities	83,914		51,592		877,187		—			1,012,693
Total liabilities	$	83,914	$	3,416,330	$	50,730,711	$	(128,214	)	$	54,102,741

Shareholders' Equity:
Shareholders' equity attributable to XL Group Ltd	$	9,628,529	$	9,632,524	$	13,277,715	$	(22,910,239	)	$	9,628,529
Non-controlling interest in equity of consolidated subsidiaries	—		956,921		649,772		—			1,606,693
Total shareholders' equity	$	9,628,529	$	10,589,445	$	13,927,487	$	(22,910,239	)	$	11,235,222
Total liabilities and shareholders' equity	$	9,712,443	$	14,005,775	$	64,658,198	$	(23,038,453	)	$	65,337,963

____________


(1)	Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.



	December 31, 2017
Condensed Consolidating Balance Sheet (U.S. dollars in thousands)	XL-Group (1)		XLIT		Other XL Group Subsidiaries		Consolidating Adjustments and Eliminations			XL Group Consolidated
ASSETS
Investments:
Fixed maturities AFS	$	—	$	528,152	$	30,400,836	$	—		$	30,928,988
Short-term investments AFS	—		—		815,481		—			815,481
Fixed maturities trading	—		—		2,006,385		—			2,006,385
Short-term investments trading	—		—		14,965		—			14,965
Equity securities	—		—		713,967		—			713,967
Investments in affiliates	—		—		1,911,996		—			1,911,996
Other investments	—		—		1,163,863		—			1,163,863
Total investments	$	—	$	528,152	$	37,027,493	$	—		$	37,555,645
Cash and cash equivalents	3,950		158,688		3,273,316		—			3,435,954
Restricted cash	—		—		157,497		—			157,497
Investments in subsidiaries	9,817,979		13,379,083		—		(23,197,062		)	—
Accrued investment income	11		2,436		269,702		—			272,149
Deferred acquisition costs and value of business acquired	—		—		1,102,474		—			1,102,474
Ceded unearned premiums	—		—		2,198,217		—			2,198,217
Premiums receivable	—		—		6,934,482		—			6,934,482
Reinsurance balances receivable	—		—		930,114		—			930,114
Unpaid losses and loss expenses recoverable	—		—		7,247,723		—			7,247,723
Receivable from investments sold	—		—		201,515		—			201,515
Goodwill and other intangible assets	—		—		2,225,751		—			2,225,751
Deferred tax asset	—		—		332,024		—			332,024
Amounts due from subsidiaries/parent	32,301		—		61,976		(94,277		)	—
Other assets	14,541		27,244		800,906		—			842,691
Total assets	$	9,868,782	$	14,095,603	$	62,763,190	$	(23,291,339	)	$	63,436,236

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss expenses	$	—	$	—	$	29,696,779	$	—		$	29,696,779
Deposit liabilities	—		—		1,042,677		—			1,042,677
Future policy benefit reserves	—		—		3,610,926		—			3,610,926
Funds withheld on GreyCastle life retrocession arrangements	—		—		999,219		—			999,219
Unearned premiums	—		—		8,307,431		—			8,307,431
Notes payable and debt	—		3,220,769		—		—			3,220,769
Reinsurance balances payable	—		—		3,706,116		—			3,706,116
Payable for investments purchased	—		848		332,141		—			332,989
Deferred tax liability	—		—		57,574		—			57,574
Amounts due to subsidiaries/parent	—		62,111		32,166		(94,277		)	—
Other liabilities	20,465		36,975		942,996		—			1,000,436
Total liabilities	$	20,465	$	3,320,703	$	48,728,025	$	(94,277	)	$	51,974,916

Shareholders' Equity:
Shareholders' equity attributable to XL Group Ltd	$	9,848,317	$	9,817,979	$	13,379,083	$	(23,197,062	)	$	9,848,317
Non-controlling interest in equity of consolidated subsidiaries	—		956,921		656,082		—			1,613,003
Total shareholders' equity	$	9,848,317	$	10,774,900	$	14,035,165	$	(23,197,062	)	$	11,461,320
Total liabilities and shareholders' equity	$	9,868,782	$	14,095,603	$	62,763,190	$	(23,291,339	)	$	63,436,236

____________


(1)	Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

Guarantor income statement



	Three Months Ended March 31, 2018
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands)	XL-Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Revenues:
Net premiums earned	$	—		$	—		$	2,600,288		$	—		$	2,600,288
Total net investment income	8			3,287			215,186			—			218,481
Total realized investment gains (losses)	—			(1,586		)	(81,769		)	—			(83,355		)
Net realized and unrealized gains (losses) on derivative instruments	—			—			4,221			—			4,221
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			22,921			—			22,921
Income (loss) from investment affiliates	—			—			45,669			—			45,669
Fee income and other	4			—			6,713			—			6,717
Total revenues	$	12		$	1,701		$	2,813,229		$	—		$	2,814,942
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	1,622,006		$	—		$	1,622,006
Claims and policy benefits	—			—			10,307			—			10,307
Acquisition costs	—			—			463,827			—			463,827
Operating expenses	30,862			842			440,859			—			472,563
Foreign exchange (gains) losses	1,270			510			8,061			—			9,841
Interest expense	—			40,039			13,506			—			53,545
Total expenses	$	32,132		$	41,391		$	2,558,566		$	—		$	2,632,089
Income (loss) before income tax and income (loss) from operating affiliates	$	(32,120	)	$	(39,690	)	$	254,663		$	—		$	182,853
Income (loss) from operating affiliates	—			—			10,282			—			10,282
Equity in net earnings (losses) of subsidiaries	184,768			234,278			—			(419,046		)	—
Provision (benefit) for income tax	—			—			31,902			—			31,902
Net income (loss)	$	152,648		$	194,588		$	233,043		$	(419,046	)	$	161,233
Non-controlling interests	—			9,820			(1,235		)	—			8,585
Net income (loss) attributable to common shareholders	$	152,648		$	184,768		$	234,278		$	(419,046	)	$	152,648

Comprehensive income (loss)	$	(206,575	)	$	(174,455	)	$	(124,945	)	$	299,400		$	(206,575	)

____________


(1)	Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.



	Three Months Ended March 31, 2017
Condensed Consolidating Statement of Income and Comprehensive Income (U.S. dollars in thousands)	XL-Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Revenues:
Net premiums earned	$	—		$	—		$	2,522,791		$	—		$	2,522,791
Total net investment income	83			2,313			198,219			(83		)	200,532
Total realized investment gains (losses)	—			(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 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
Foreign 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)	Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

Guarantor cash flow



	Three Months Ended March 31, 2018
Condensed Consolidating Statement of Cash Flows (U.S. dollars in thousands)	XL-Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group Consolidated
Cash flows provided by (used in) operating activities:
Net cash provided by (used in) operating activities	$	(39,431	)	$	38,440		$	(237,133	)	$	—		$	(238,124	)
Cash flows provided by (used in) investing activities:
Proceeds from sale of fixed maturities and short-term investments	$	—		$	127,615		$	4,241,584		$	—		$	4,369,199
Proceeds from redemption of fixed maturities and short-term investments	—			37,790			663,614			—			701,404
Proceeds from sale of equity securities	—			—			78,716			—			78,716
Purchases of fixed maturities and short-term investments	—			(107,765		)	(4,809,426		)	—			(4,917,191		)
Purchases of equity securities	—			—			(33,230		)	—			(33,230		)
Proceeds from sale of affiliates	—			—			244,340			—			244,340
Purchases of affiliates	—			—			(76,014		)	—			(76,014		)
Returns of capital from subsidiaries	11,000			—			—			(11,000		)	—
Other, net	—			—			(26,782		)				(26,782		)
Net cash provided by (used in) investing activities	$	11,000		$	57,640		$	282,802		$	(11,000	)	$	340,442
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common shares and exercise of stock options	$	46,504		$	—		$	—		$	—		$	46,504
Buybacks of common shares	(1,663		)	—			—			—			(1,663		)
Employee withholding on share-based compensation	—			—			(16,696		)	—			(16,696		)
Return of capital	—			(11,000		)	—			11,000			—
Distributions to non-controlling interests	—			(9,820		)	(6,126		)	—			(15,946		)
Contributions from non-controlling interests	—			—			439			—			439
Contingent consideration paid on business combination	—			—			(5,000		)	—			(5,000		)
Deposit liabilities	—			—			(71,124		)	—			(71,124		)
Net cash provided by (used in) financing activities	$	44,841		$	(20,820	)	$	(98,507	)	$	11,000		$	(63,486	)
Effects of exchange rate changes on foreign currency cash	—			—			7,503			—			7,503
Increase (decrease) in cash, cash equivalents and restricted cash	$	16,410		$	75,260		$	(45,335	)	$	—		$	46,335
Cash, cash equivalents and restricted cash - beginning of year	3,950			158,688			3,430,813			—			3,593,451
Cash, cash equivalents and restricted cash - end of period	$	20,360		$	233,948		$	3,385,478		$	—		$	3,639,786

____________


(1)	Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.



	Three Months Ended March 31, 2017
Condensed Consolidating Statement of Cash Flows (U.S. dollars in thousands)	XL-Group (1)			XLIT			Other XL Group Subsidiaries			Consolidating Adjustments and Eliminations			XL Group 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		)
Other, net	—			—			23,429			—			23,429
Net cash provided by (used in) investing activities	$	—		$	42,579		$	198,927		$	—		$	241,506
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, cash equivalents and restricted cash	$	58		$	157,572		$	(224,948	)	$	—		$	(67,318	)
Cash, cash equivalents and restricted cash - beginning of year	1,022			84,286			3,495,184			—			3,580,492
Cash, cash equivalents and restricted cash - end of period	$	1,080		$	241,858		$	3,270,236		$	—		$	3,513,174

____________


(1)	Includes XL-Ireland, which was the former ultimate parent and is now in liquidation proceedings. The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.