Computation of Earnings Per Ordinary Share and Ordinary Share Equivalent

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Text Block]

11. Computation of Earnings Per Ordinary Share and Ordinary Share Equivalent

(U.S. dollars and shares in thousands, except per share amounts) (Unaudited)	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011			2010
Basic earnings per ordinary share:
Net income (loss) attributable to XL Group plc	$	225,663	$	194,005		$	(1,621	)	$	337,885
Less: preference share dividends		—		(2,194	)		—			(34,694	)
Add: gain on redemption of Redeemable Series C preference ordinary shares		—		—			—			16,616
Net income available to ordinary shareholders	$	225,663	$	191,811		$	(1,621	)	$	319,807
Weighted average ordinary shares outstanding – basic		309,184		342,056			310,325			342,049
Basic earnings per ordinary share	$	0.73	$	0.56		$	(0.01	)	$	0.93
Diluted earnings per ordinary share:
Net income available to ordinary shareholders	$	225,663	$	191,811		$	(1,621	)	$	319,807
Impact of assumed conversion of 10.75% Units		11,977		—			—			—
Net income available to ordinary shareholders including impact of assumed conversion of 10.75% Units	$	237,640	$	191,811		$	(1,621	)	$	319,807
Weighted average ordinary shares outstanding – basic		309,184		342,056			310,325			342,049
Impact of share based compensation and certain conversion features		32,805		822			—			732
Weighted average ordinary shares outstanding – diluted		341,989		342,878			310,325			342,781
Diluted earnings per ordinary share	$	0.69	$	0.56		$	(0.01	)	$	0.93
Dividends per ordinary share	$	0.11	$	0.10		$	0.22		$	0.20

          For the three and six months ended June 30, 2011 and 2010, ordinary shares available for issuance under share based compensation plans of 9.7 million and 17.3 million, and 12.8 million and 12.6 million, respectively, were not included in the calculation of diluted earnings per share because the assumed exercise or issuance of such shares would be anti-dilutive.

          In addition, for the three and six months ended June 30, 2011 and 2010, ordinary shares available for issuance under the purchase contracts associated with the 10.75% Units of nil and 30.5 million, and 31.7 million and 31.8 million, respectively, were not included in the calculation of diluted earnings per share because the assumed issuance of such shares would be anti-dilutive. For further information on the 10.75% Units see Item 8, Note 15, “Notes Payable and Debt Financing Arrangements,” to the Consolidated Financial Statements in the Company’s Annual Report on form 10-K for the year ended December 31, 2010.