Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

4. Segment Information

          The Company is organized into three operating segments: Insurance, Reinsurance and Life operations. The Company’s general investment and financing operations are reflected in Corporate.

          The Company evaluates the performance for both the Insurance and Reinsurance segments based on underwriting profit while the Life operations segment performance is based on contribution. Other items of revenue and expenditure of the Company are not evaluated at the segment level for reporting purposes. In addition, the Company does not allocate investment assets by segment for its Property and Casualty (“P&C”) operations. Investment assets related to the Company’s Life operations and certain structured products included in the Insurance and Reinsurance segments and Corporate are held in separately identified portfolios. As such, net investment income from these assets is included in the contribution from each of these segments.

Three Months ended June 30, 2011: (U.S. dollars in thousands, except ratios) (Unaudited)	Insurance			Reinsurance			Total P&C			Life Operations			Corporate			Total
Gross premiums written	$	1,290,030		$	472,413		$	1,762,443		$	100,281		$	—		$	1,862,724
Net premiums written		893,191			412,868			1,306,059			92,194			—			1,398,253
Net premiums earned		907,443			398,682			1,306,125			92,214			—			1,398,339
Net losses and loss expenses		(608,182	)		(215,402	)		(823,584	)		(137,416	)		—			(961,000	)
Acquisition costs		(113,883	)		(91,448	)		(205,331	)		(9,768	)		—			(215,099	)
Operating expenses (1)		(166,608	)		(43,553	)		(210,161	)		(2,723	)		—			(212,884	)
Underwriting profit (loss)	$	18,770		$	48,279		$	67,049		$	(57,693	)	$	—		$	9,356
Net investment income								196,053			82,057			—			278,110
Net results from structured products (2)		2,690			2,226			4,916			—			—			4,916
Net fee income and other (3)		(3,218	)		(9	)		(3,227	)		96			—			(3,131	)
Net realized gains (losses) on investments								(10,248	)		704			—			(9,544	)
Contribution from P&C, Life Operations and Corporate							$	254,543		$	25,164		$	—		$	279,707
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													$	(10,950	)	$	(10,950	)
Net income (loss) from investment fund affiliates and operating affiliates (4)														56,501			56,501
Exchange gains (losses)														8,498			8,498
Corporate operating expenses														(39,522	)		(39,522	)
Interest expense (5)														(41,599	)		(41,599	)
Non-controlling interests														(2,102	)		(2,102	)
Income taxes & other														(24,870	)		(24,870	)
Net income attributable to XL Group plc																$	225,663
Ratios – P&C operations: (6)
Loss and loss expense ratio		67.0	%		54.0	%		63.1	%
Underwriting expense ratio		30.9	%		33.9	%		31.8	%
Combined ratio		97.9	%		87.9	%		94.9	%

Notes:
(1)	Operating expenses exclude Corporate operating expenses, shown separately.
(2)	The net results from P&C structured products include net investment income and interest expense of $18.4 million and $13.5 million.
(3)	Net fee income and other includes operating expenses from the Company’s loss prevention consulting services business and expenses related to the cost of an endorsement facility with National Indemnity Company.
(4)	The Company records the income related to the alternative funds and to the private investment fund and operating affiliates on a one month and three month lag, respectively.
(5)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments and Corporate.
(6)	Ratios are based on net premiums earned from P&C operations.

Three Months ended June 30, 2010: (U.S. dollars in thousands, except ratios) (Unaudited)	Insurance			Reinsurance			Total P&C			Life Operations			Corporate			Total
Gross premiums written	$	1,085,740		$	421,340		$	1,507,080		$	92,838		$	—		$	1,599,918
Net premiums written		757,424			357,180			1,114,604			86,094			—			1,200,698
Net premiums earned		868,666			347,647			1,216,313			86,448			—			1,302,761
Net losses and loss expenses		(592,184	)		(154,981	)		(747,165	)		(123,375	)		—			(870,540	)
Acquisition costs		(92,236	)		(75,572	)		(167,808	)		(12,752	)		—			(180,560	)
Operating expenses (1)		(163,005	)		(43,662	)		(206,667	)		(2,765	)		—			(209,432	)
Underwriting profit (loss)	$	21,241		$	73,432		$	94,673		$	(52,444	)	$	—		$	42,229
Net investment income								205,346			75,389			—			280,735
Net results from structured products (2)		2,940			5,776			8,716			—			3,086			11,802
Net fee income and other (3)		(4,337	)		575			(3,762	)		114			—			(3,648	)
Net realized gains (losses) on investments								(55,876	)		(5,445	)		(65	)		(61,386	)
Contribution from P&C, Life Operations and Corporate							$	249,097		$	17,614		$	3,021		$	269,732
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													$	(19,896	)	$	(19,896	)
Net income (loss) from investment fund affiliates and operating affiliates (4)														40,097			40,097
Exchange gains (losses)														32,276			32,276
Corporate operating expenses														(22,793	)		(22,793	)
Interest expense (5)														(38,551	)		(38,551	)
Non-controlling interests														80			80
Loss on termination of guarantee														(23,500	)		(23,500	)
Income taxes & other														(43,440	)		(43,440	)
Net income attributable to XL Group Ltd.																$	194,005
Ratios – P&C operations: (6)
Loss and loss expense ratio		68.2	%		44.6	%		61.4	%
Underwriting expense ratio		29.4	%		34.3	%		30.8	%
Combined ratio		97.6	%		78.9	%		92.2	%

Notes:
(1)	Operating expenses exclude Corporate operating expenses, shown separately.
(2)	The net results from P&C structured products and Corporate structured products include net investment income, interest expense and operating expenses of $17.2 million, $9.9 million and $1.4 million (credit) and $4.7 million, $0.7 million and $0.9 million, respectively.
(3)	Net fee income and other includes operating expenses from the Company’s loss prevention consulting services business and expenses related to the cost of an endorsement facility with National Indemnity Company.
(4)	The Company records the income related to the alternative funds and to the private investment fund and operating affiliates on a one month and three month lag, respectively.
(5)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments and Corporate.
(6)	Ratios are based on net premiums earned from P&C operations.

Six months ended June 30, 2011:
(U.S. dollars in thousands, except ratios) (Unaudited)	Insurance			Reinsurance			Total P&C			Life Operations			Corporate			Total
Gross premiums written	$	2,512,379		$	1,349,184		$	3,861,563		$	197,940		$	—		$	4,059,503
Net premiums written		1,812,181			1,208,160			3,020,341			181,866			—			3,202,207
Net premiums earned		1,783,363			794,458			2,577,821			181,901			—			2,759,722
Net losses and loss expenses		(1,396,695	)		(635,754	)		(2,032,449	)		(270,647	)		—			(2,303,096	)
Acquisition costs		(221,527	)		(164,974	)		(386,501	)		(17,088	)		—			(403,589	)
Operating expenses (1)		(330,703	)		(89,183	)		(419,886	)		(4,889	)		—			(424,775	)
Underwriting profit (loss)	$	(165,562	)	$	(95,453	)	$	(261,015	)	$	(110,723	)	$	—		$	(371,738	)
Net investment income								379,618			159,033			—			538,651
Net results from structured products (2)		5,950			6,440			12,390			—			—			12,390
Net fee income and other (3)		(9,130	)		1,385			(7,745	)		137			—			(7,608	)
Net realized gains (losses) on investments								(37,134	)		(38,847	)		—			(75,981	)
Contribution from P&C, Life Operations and Corporate							$	86,114		$	9,600		$	—		$	95,714
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													$	(7,383	)	$	(7,383	)
Net income (loss) from investment fund affiliates and operating affiliates (4)														97,287			97,287
Exchange gains (losses)														(1,016	)		(1,016	)
Corporate operating expenses														(74,749	)		(74,749	)
Interest expense (5)														(83,498	)		(83,498	)
Non-controlling interests														(35,438	)		(35,438	)
Income taxes & other														7,462			7,462
Net income attributable to XL Group plc																$	(1,621	)
Ratios – P&C operations: (6)
Loss and loss expense ratio		78.3	%		80.0	%		78.8	%
Underwriting expense ratio		31.0	%		32.0	%		31.3	%
Combined ratio		109.3	%		112.0	%		110.1	%

Notes:
(1)	Operating expenses exclude Corporate operating expenses, shown separately.
(2)	The net results from P&C structured products include net investment income and interest expense of $38.1 million and $25.7 million.
(3)	Net fee income and other includes operating expenses from the Company’s loss prevention consulting services business and expenses related to the cost of an endorsement facility with National Indemnity Company.
(4)	The Company records the income related to the alternative funds and to the private investment fund and operating affiliates on a one month and three month lag, respectively.
(5)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments and Corporate.
(6)	Ratios are based on net premiums earned from P&C operations.

Six months ended June 30, 2010:
(U.S. dollars in thousands, except ratios) (Unaudited)	Insurance			Reinsurance			Total P&C			Life Operations			Corporate			Total
Gross premiums written	$	2,217,630		$	1,211,763		$	3,429,393		$	205,739		$	—		$	3,635,132
Net premiums written		1,658,688			1,052,441			2,711,129			190,760			—			2,901,889
Net premiums earned		1,765,677			714,237			2,479,914			191,332			—			2,671,246
Net losses and loss expenses		(1,240,503	)		(398,862	)		(1,639,365	)		(247,118	)		—			(1,886,483	)
Acquisition costs		(202,378	)		(148,177	)		(350,555	)		(31,142	)		—			(381,697	)
Operating expenses (1)		(316,241	)		(85,690	)		(401,931	)		(5,773	)		—			(407,704	)
Underwriting profit (loss)	$	6,555		$	81,508		$	88,063		$	(92,701	)	$	—		$	(4,638	)
Net investment income								409,260			155,733			—			564,993
Net results from structured products (2)		8,579			8,252			16,831			—			6,739			23,570
Net fee income and other (3)		(8,123	)		894			(7,229	)		154			—			(7,075	)
Net realized gains (losses) on investments								(84,453	)		(9,858	)		(3,251	)		(97,562	)
Contribution from P&C, Life Operations and Corporate							$	422,472		$	53,328		$	3,488		$	479,288
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													$	(40,376	)	$	(40,376	)
Net income (loss) from investment fund affiliates and operating affiliates (4)														59,881			59,881
Exchange gains (losses)														53,359			53,359
Corporate operating expenses														(41,656	)		(41,656	)
Interest expense (5)														(75,451	)		(75,451	)
Non-controlling interests														81			81
Loss on termination of guarantee														(23,500	)		(23,500	)
Income taxes & other														(73,741	)		(73,741	)
Net income attributable to XL Group Ltd.																$	337,885
Ratios – P&C operations: (6)
Loss and loss expense ratio		70.3	%		55.8	%		66.1	%
Underwriting expense ratio		29.3	%		32.8	%		30.3	%
Combined ratio		99.6	%		88.6	%		96.4	%

Notes:
(1)	Operating expenses exclude Corporate operating expenses, shown separately.
(2)	The net results from P&C structured products and Corporate structured products include net investment income, interest expense and operating expenses of $36.9 million, $21.4 million and $1.3 million (credit) and $9.0 million, $1.3 million and $0.9 million, respectively.
(3)	Net fee income and other includes operating expenses from the Company’s loss prevention consulting services business and expenses related to the cost of an endorsement facility with National Indemnity Company.
(4)	The Company records the income related to the alternative funds and to the private investment fund and operating affiliates on a one month and three month lag, respectively.
(5)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments and Corporate.
(6)	Ratios are based on net premiums earned from P&C operations.

          The following tables summarize the Company’s net premiums earned by line of business:

Three Months ended June 30, 2011:
(U.S. dollars in thousands) (Unaudited)	Insurance		Reinsurance			Life Operations		Total
P&C Operations:
Casualty – professional lines	$	322,654	$	51,914		$	—	$	374,568
Casualty – other lines		179,495		68,920			—		248,415
Property catastrophe		—		94,363			—		94,363
Other property		116,829		135,255			—		252,084
Marine, energy, aviation and satellite		129,008		30,435			—		159,443
Other specialty lines (1)		157,386		—			—		157,386
Other (2)		1,064		17,903			—		18,967
Structured indemnity		1,007		(108	)		—		899
Total P&C Operations	$	907,443		398,682		$	—	$	1,306,125
Life Operations:
Other Life	$	—	$	—		$	58,246	$	58,246
Annuity		—		—			33,968		33,968
Total Life Operations	$	—	$	—		$	92,214	$	92,214
Total	$	907,443	$	398,682		$	92,214	$	1,398,339

Three Months ended June 30, 2010:
(U.S. dollars in thousands) (Unaudited)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Casualty – professional lines	$	328,069	$	51,665	$	—	$	379,734
Casualty – other lines		141,353		51,320		—		192,673
Property catastrophe		—		80,876		—		80,876
Other property		108,016		115,425		—		223,441
Marine, energy, aviation and satellite		133,720		22,452		—		156,172
Other specialty lines (1)		151,016		—		—		151,016
Other (2)		3,389		25,847		—		29,236
Structured indemnity		3,103		62		—		3,165
Total P&C Operations	$	868,666		347,647	$	—	$	1,216,313
Life Operations:
Other Life	$	—	$	—	$	55,879	$	55,879
Annuity		—		—		30,569		30,569
Total Life Operations	$	—	$	—	$	86,448	$	86,448
Total	$	868,666	$	347,647	$	86,448	$	1,302,761

(1)	Other specialty lines within the Insurance segment includes: environmental, programs, equine, warranty, specie, middle markets and excess and surplus lines.
(2)	Other includes credit and surety, whole account contracts and other lines.
(3)	Certain reclassifications have been made to conform to current period presentation.

          The following tables summarize the Company’s net premiums earned by line of business:

Six months ended June 30, 2011:
(U.S. dollars in thousands) (Unaudited)	Insurance	Reinsurance	Life Operations	Total

P&C Operations:
Casualty – professional lines	$	638,297	$	105,633		$	—	$	743,930
Casualty – other lines		338,325		119,963			—		458,288
Property catastrophe		—		188,927			—		188,927
Other property		223,693		271,497			—		495,190
Marine, energy, aviation and satellite		255,075		68,863			—		323,938
Other specialty lines (1)		323,452		—			—		323,452
Other (2)		2,416		43,452			—		45,868
Structured indemnity		2,105		(3,877	)		—		(1,772	)
Total P&C Operations	$	1,783,363		794,458		$	—	$	2,577,821
Life Operations:
Other Life	$	—	$	—		$	115,010	$	115,010
Annuity		—		—			66,891		66,891
Total Life Operations	$	—	$	—		$	181,901	$	181,901
Total	$	1,783,363	$	794,458		$	181,901	$	2,759,722

Six months ended June 30, 2010:
(U.S. dollars in thousands) (Unaudited)	Insurance	Reinsurance	Life Operations	Total

P&C Operations:
Casualty – professional lines	$	665,127	$	107,385		$	—	$	772,512
Casualty – other lines		298,719		115,453			—		414,172
Property catastrophe		—		165,511			—		165,511
Other property		205,555		228,688			—		434,243
Marine, energy, aviation and satellite		274,490		42,641			—		317,131
Other specialty lines (1)		312,644		—			—		312,644
Other (2)		3,353		54,844			—		58,197
Structured indemnity		5,789		(285	)		—		5,504
Total P&C Operations	$	1,765,677		714,237		$	—	$	2,479,914
Life Operations:
Other Life	$	—	$	—		$	129,332	$	129,332
Annuity		—		—			62,000		62,000
Total Life Operations	$	—	$	—		$	191,332	$	191,332
Total	$	1,765,677	$	714,237		$	191,332	$	2,671,246

(1)	Other specialty lines within the Insurance segment includes: environmental, programs, equine, warranty, specie, middle markets and excess and surplus lines.
(2)	Other includes credit and surety, whole account contracts and other lines.
(3)	Certain reclassifications have been made to conform to current period presentation.