Guarantor Financial Information

The following tables present condensed consolidating balance sheets at June 30, 2018 and December 31, 2017, condensed consolidating statements of income and comprehensive income for the three and six months ended June 30, 2018 and 2017 and condensed consolidating statements of cash flows for the six months ended June 30, 2018 and 2017 for XL Group, XLIT, a 100% owned subsidiary of XL Group, and XL Group's other subsidiaries (excluding XL Group plc ("XL-Ireland")), which are all 100% directly or indirectly owned subsidiaries of XLIT. For purposes of this disclosure, the results of XL-Ireland, which is currently in liquidation proceedings and whose assets are otherwise immaterial, at June 30, 2018 and December 31, 2017 and for the three and six months ended June 30, 2018 and 2017 have been included within the results of XL Group.



	June 30, 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	$	—	$	425,321	$	29,367,830	$	—		$	29,793,151
Short-term investments AFS	—		—		623,113		—			623,113
Fixed maturities trading	—		—		1,990,344		—			1,990,344
Short-term investments trading	—		—		5,788		—			5,788
Equity securities	—		—		644,711		—			644,711
Investments in affiliates	—		—		1,904,010		—			1,904,010
Other investments	—		—		1,151,706		—			1,151,706
Total investments	$	—	$	425,321	$	35,687,502	$	—		$	36,112,823
Cash and cash equivalents	3,794		102,847		2,796,429		—			2,903,070
Restricted cash	—		—		127,497		—			127,497
Investments in subsidiaries	9,653,493		13,050,236		—		(22,703,729		)	—
Accrued investment income	10		1,927		263,178		—			265,115
Deferred acquisition costs and value of business acquired	—		—		1,162,164		—			1,162,164
Ceded unearned premiums	—		—		2,807,369		—			2,807,369
Premiums receivable	—		—		8,079,074		—			8,079,074
Reinsurance balances receivable	—		—		1,293,477		—			1,293,477
Unpaid losses and loss expenses recoverable	—		—		7,209,084		—			7,209,084
Receivable from investments sold	—		—		188,781		—			188,781
Goodwill and other intangible assets	—		—		2,201,085		—			2,201,085
Deferred tax asset	—		—		372,520		—			372,520
Amounts due from subsidiaries/parent	29,526		234,207		—		(263,733		)	—
Other assets	1,468		27,164		835,198		—			863,830
Total assets	$	9,688,291	$	13,841,702	$	63,023,358	$	(22,967,462	)	$	63,585,889

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss expenses	$	—	$	—	$	29,181,147	$	—		$	29,181,147
Deposit liabilities	—		—		940,557		—			940,557
Future policy benefit reserves	—		—		3,380,442		—			3,380,442
Funds withheld on GreyCastle life retrocession arrangements	—		—		736,092		—			736,092
Unearned premiums	—		—		9,539,454		—			9,539,454
Notes payable and debt	—		3,203,462		13,661		—			3,217,123
Reinsurance balances payable	—		—		4,071,505		—			4,071,505
Payable for investments purchased	—		1,135		216,662		—			217,797
Deferred tax liability	—		—		57,360		—			57,360
Amounts due to subsidiaries/parent	—		—		263,733		(263,733		)	—
Other liabilities	28,280		26,691		932,435		—			987,406
Total liabilities	$	28,280	$	3,231,288	$	49,333,048	$	(263,733	)	$	52,328,883

Shareholders' Equity:
Shareholders' equity attributable to XL Group Ltd	$	9,660,011	$	9,653,493	$	13,050,236	$	(22,703,729	)	$	9,660,011
Non-controlling interest in equity of consolidated subsidiaries	—		956,921		640,074		—			1,596,995
Total shareholders' equity	$	9,660,011	$	10,610,414	$	13,690,310	$	(22,703,729	)	$	11,257,006
Total liabilities and shareholders' equity	$	9,688,291	$	13,841,702	$	63,023,358	$	(22,967,462	)	$	63,585,889

____________


(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.



	Three Months Ended June 30, 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	$	—		$	—		$	2,695,169		$	—		$	2,695,169
Total net investment income	39			3,565			228,184			—			231,788
Total realized investment gains (losses)	—			(689		)	91,494			—			90,805
Net realized and unrealized gains (losses) on derivative instruments	—			—			16,126			—			16,126
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(36,120		)	—			(36,120		)
Income (loss) from investment affiliates	—			—			16,548			—			16,548
Fee income and other	—			—			8,304			—			8,304
Total revenues	$	39		$	2,876		$	3,019,705		$	—		$	3,022,620
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	1,721,309		$	—		$	1,721,309
Claims and policy benefits	—			—			10,117			—			10,117
Acquisition costs	—			—			471,491			—			471,491
Operating expenses	5,765			945			463,798			—			470,508
Foreign exchange (gains) losses	(2,183		)	(1,114		)	(8,843		)	—			(12,140		)
Interest expense	—			40,206			8,480			—			48,686
Total expenses	$	3,582		$	40,037		$	2,666,352		$	—		$	2,709,971
Income (loss) before income tax and income (loss) from operating affiliates	$	(3,543	)	$	(37,161	)	$	353,353		$	—		$	312,649
Income (loss) from operating affiliates	—			—			51,187			—			51,187
Equity in net earnings (losses) of subsidiaries	322,628			370,262			—			(692,890		)	—
Provision (benefit) for income tax	89			—			26,947			—			27,036
Net income (loss)	$	318,996		$	333,101		$	377,593		$	(692,890	)	$	336,800
Non-controlling interests	—			10,473			7,331			—			17,804
Net income (loss) attributable to common shareholders	$	318,996		$	322,628		$	370,262		$	(692,890	)	$	318,996

Comprehensive income (loss)	$	58,005		$	61,637		$	109,271		$	(170,908	)	$	58,005

____________


(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 June 30, 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	$	—		$	—		$	2,516,917		$	—		$	2,516,917
Total net investment income	10			2,103			206,571			(10		)	208,674
Total realized investment gains (losses)	—			1,446			55,182			—			56,628
Net realized and unrealized gains (losses) on derivative instruments	—			—			(906		)	—			(906		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(34,596		)	—			(34,596		)
Income (loss) from investment affiliates	—			—			30,818			—			30,818
Fee income and other	—			—			10,225			—			10,225
Total revenues	$	10		$	3,549		$	2,784,211		$	(10	)	$	2,787,760
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	1,529,083		$	—		$	1,529,083
Claims and policy benefits	—			—			7,595			—			7,595
Acquisition costs	—			—			433,584			—			433,584
Operating expenses	27,389			1,152			444,237			—			472,778
Foreign exchange (gains) losses	936			26			(6,605		)	—			(5,643		)
Interest expense	—			35,277			18,741			—			54,018
Total expenses	$	28,325		$	36,455		$	2,426,635		$	—		$	2,491,415
Income (loss) before income tax and income (loss) from operating affiliates	$	(28,315	)	$	(32,906	)	$	357,576		$	(10	)	$	296,345
Income (loss) from operating affiliates	—			—			42,704			—			42,704
Equity in net earnings (losses) of subsidiaries	329,935			362,841			—			(692,776		)	—
Provision (benefit) for income tax	—			—			29,006			—			29,006
Net income (loss)	$	301,620		$	329,935		$	371,274		$	(692,786	)	$	310,043
Non-controlling interests	—			—			8,433			(10		)	8,423
Net income (loss) attributable to common shareholders	$	301,620		$	329,935		$	362,841		$	(692,776	)	$	301,620

Comprehensive income (loss)	$	377,811		$	406,126		$	439,032		$	(845,158	)	$	377,811

____________


(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.



	Six Months Ended June 30, 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	$	—		$	—		$	5,295,457		$	—		$	5,295,457
Total net investment income	47			6,852			443,370			—			450,269
Total realized investment gains (losses)	—			(2,275		)	9,725			—			7,450
Net realized and unrealized gains (losses) on derivative instruments	—			—			20,347			—			20,347
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(13,199		)	—			(13,199		)
Income (loss) from investment affiliates	—			—			62,217			—			62,217
Fee income and other	4			—			15,017			—			15,021
Total revenues	$	51		$	4,577		$	5,832,934		$	—		$	5,837,562
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	3,343,315		$	—		$	3,343,315
Claims and policy benefits	—			—			20,424			—			20,424
Acquisition costs	—			—			935,318			—			935,318
Operating expenses	36,627			1,787			904,657			—			943,071
Foreign exchange (gains) losses	(913		)	(604		)	(782		)	—			(2,299		)
Interest expense	—			80,245			21,986			—			102,231
Total expenses	$	35,714		$	81,428		$	5,224,918		$	—		$	5,342,060
Income (loss) before income tax and income (loss) from operating affiliates	$	(35,663	)	$	(76,851	)	$	608,016		$	—		$	495,502
Income (loss) from operating affiliates	—			—			61,469			—			61,469
Equity in net earnings (losses) of subsidiaries	507,396			604,540			—			(1,111,936		)	—
Provision (benefit) for income tax	89			—			58,849			—			58,938
Net income (loss)	$	471,644		$	527,689		$	610,636		$	(1,111,936	)	$	498,033
Non-controlling interests	—			20,293			6,096			—			26,389
Net income (loss) attributable to common shareholders	$	471,644		$	507,396		$	604,540		$	(1,111,936	)	$	471,644

Comprehensive income (loss)	$	(148,570	)	$	(112,818	)	$	(15,674	)	$	128,492		$	(148,570	)

____________


(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.



	Six Months Ended June 30, 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	$	—		$	—		$	5,039,708		$	—		$	5,039,708
Total net investment income	94			4,416			404,790			(94		)	409,206
Total realized investment gains (losses)	—			669			93,245			—			93,914
Net realized and unrealized gains (losses) on derivative instruments	—			—			(7,975		)	—			(7,975		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets	—			—			(84,697		)	—			(84,697		)
Income (loss) from investment affiliates	—			—			69,079			—			69,079
Fee income and other	—			—			23,886			—			23,886
Total revenues	$	94		$	5,085		$	5,538,036		$	(94	)	$	5,543,121
Expenses:
Net losses and loss expenses incurred	$	—		$	—		$	3,112,539		$	—		$	3,112,539
Claims and policy benefits	—			—			14,886			—			14,886
Acquisition costs	—			—			869,453			—			869,453
Operating expenses	43,570			1,661			895,585			—			940,816
Foreign exchange (gains) losses	1,112			27			(10,118		)	—			(8,979		)
Interest expense	—			70,424			34,305			—			104,729
Total expenses	$	44,682		$	72,112		$	4,916,650		$	—		$	5,033,444
Income (loss) before income tax and income (loss) from operating affiliates	$	(44,588	)	$	(67,027	)	$	621,386		$	(94	)	$	509,677
Income (loss) from operating affiliates	—			—			56,313			—			56,313
Equity in net earnings (losses) of subsidiaries	499,051			602,367			—			(1,101,418		)	—
Provision (benefit) for income tax	—			—			42,098			—			42,098
Net income (loss)	$	454,463		$	535,340		$	635,601		$	(1,101,512	)	$	523,892
Non-controlling interests	—			36,289			33,234			(94		)	69,429
Net income (loss) attributable to common shareholders	$	454,463		$	499,051		$	602,367		$	(1,101,418	)	$	454,463

Comprehensive income (loss)	$	660,082		$	704,670		$	807,986		$	(1,512,656	)	$	660,082

____________


(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.



	Six Months Ended June 30, 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	$	3,103		$	(377,105	)	$	(237,615	)	$	—		$	(611,617	)
Cash flows provided by (used in) investing activities:
Proceeds from sale of fixed maturities and short-term investments	$	—		$	162,290		$	7,269,018		$	—		$	7,431,308
Proceeds from redemption of fixed maturities and short-term investments	—			58,759			1,381,432			—			1,440,191
Proceeds from sale of equity securities	—			—			84,068			—			84,068
Purchases of fixed maturities and short-term investments	—			(127,823		)	(8,654,024		)	—			(8,781,847		)
Purchases of equity securities	—			—			(44,954		)	—			(44,954		)
Proceeds from sale of affiliates	—			—			302,199			—			302,199
Purchases of affiliates	—			—			(103,222		)	—			(103,222		)
Returns of capital from subsidiaries	51,669			300,000			—			(351,669		)	—
Other, net	—			—			(29,985		)	—			(29,985		)
Net cash provided by (used in) investing activities	$	51,669		$	393,226		$	204,532		$	(351,669	)	$	297,758
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common shares and exercise of stock options	$	60,855		$	—		$	—		$	—		$	60,855
Buybacks of common shares	(2,057		)	—			—			—			(2,057		)
Employee withholding on share-based compensation	—			—			(16,696		)	—			(16,696		)
Dividends paid on common shares	(113,726		)	—			—			—			(113,726		)
Return of capital	—			(51,669		)	(300,000		)	351,669			—
Distributions to non-controlling interests	—			(20,293		)	(24,801		)	—			(45,094		)
Contributions from non-controlling interests	—			—			1,924			—			1,924
Contingent consideration paid on business combination	—			—			(5,000		)	—			(5,000		)
Deposit liabilities	—			—			(119,113		)	—			(119,113		)
Net cash provided by (used in) financing activities	$	(54,928	)	$	(71,962	)	$	(463,686	)	$	351,669		$	(238,907	)
Effects of exchange rate changes on foreign currency cash	—			—			(10,118		)	—			(10,118		)
Increase (decrease) in cash, cash equivalents and restricted cash	$	(156	)	$	(55,841	)	$	(506,887	)	$	—		$	(562,884	)
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	$	3,794		$	102,847		$	2,923,926		$	—		$	3,030,567

____________


(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.



	Six Months Ended June 30, 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	$	286,697		$	332,788		$	(45,440	)	$	(695,987	)	$	(121,942	)
Cash flows provided by (used in) investing activities:
Proceeds from sale of fixed maturities and short-term investments	$	—		$	81,662		$	6,305,948		$	—		$	6,387,610
Proceeds from redemption of fixed maturities and short-term investments	—			82,392			2,001,790			—			2,084,182
Proceeds from sale of equity securities	—			677			228,237			—			228,914
Purchases of fixed maturities and short-term investments	—			(143,851		)	(8,575,173		)	—			(8,719,024		)
Purchases of equity securities	—			—			(277,329		)	—			(277,329		)
Proceeds from sale of affiliates	—			—			236,861			—			236,861
Purchases of affiliates	—			—			(51,891		)	—			(51,891		)
Returns of capital from subsidiaries	237,013			—			—			(237,013		)	—
Other, net	—			—			5,127			—			5,127
Net cash provided by (used in) investing activities	$	237,013		$	20,880		$	(126,430	)	$	(237,013	)	$	(105,550	)
Cash flows provided by (used in) financing activities:
Proceeds from issuance of common shares and exercise of stock options	$	42,630		$	—		$	—		$	—		$	42,630
Buybacks of common shares	(450,629		)	—			—			—			(450,629		)
Employee withholding on share-based compensation	—			—			(23,957		)	—			(23,957		)
Dividends paid on common shares	(115,589		)	(295,987		)	(400,000		)	695,987			(115,589		)
Return of capital	—			(237,013		)	—			237,013			—
Distributions to non-controlling interests	—			(39,867		)	(33,841		)	—			(73,708		)
Contributions from non-controlling interests	—			—			25			—			25
Proceeds from issuance of debt	—			558,311			—			—			558,311
Contingent consideration paid on business combination	—			—			(7,304		)	—			(7,304		)
Deposit liabilities	—			—			(11,150		)	—			(11,150		)
Net cash provided by (used in) financing activities	$	(523,588	)	$	(14,556	)	$	(476,227	)	$	933,000		$	(81,371	)
Effects of exchange rate changes on foreign currency cash	—			—			43,423			—			43,423
Increase (decrease) in cash, cash equivalents and restricted cash	$	122		$	339,112		$	(604,674	)	$	—		$	(265,440	)
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	$	1,144		$	423,398		$	2,890,510		$	—		$	3,315,052

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(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.