Computation of Earnings Per Ordinary Share and Ordinary Share Equivalent

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Text Block]

12. 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 September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Basic earnings per ordinary share:
Net income (loss) attributable to XL Group plc (1)	$	42,398	$	77,543	$	40,777	$	415,428
Less: preference share dividends (1)		—		—		—		(34,694	)
Add: gain on redemption of Redeemable Series C preference ordinary shares		—		—		—		16,616
Net income available to ordinary shareholders	$	42,398	$	77,543	$	40,777	$	397,350
Weighted average ordinary shares outstanding – basic		311,714		338,724		310,793		340,927
Basic earnings per ordinary share	$	0.14	$	0.23	$	0.13	$	1.17
Diluted earnings per ordinary share:
Weighted average ordinary shares outstanding – basic		311,714		338,724		310,793		340,927
Impact of share based compensation and certain conversion features		2,134		1,095		4,049		837
Weighted average ordinary shares outstanding – diluted		313,848		339,819		314,842		341,764
Diluted earnings per ordinary share	$	0.14	$	0.23	$	0.13	$	1.16
Dividends per ordinary share	$	0.11	$	0.10	$	0.33	$	0.30

(1) During the first quarter of 2011, the Redeemable Series C preference ordinary shares were reclassified as Non-controlling interest – Redeemable Series C preference ordinary shares and Series E preference ordinary shares were reclassified as Non-controlling interest in equity of consolidated subsidiaries on the Company’s consolidated balance sheet as a result of changes in ownership structure arising as part of the Company’s redomestication of the ultimate parent holding company to Ireland as of July 1, 2010. Accordingly, preference share dividends declared are recorded as Non-controlling interests rather than as Preference share dividends within the consolidated statements of income from July 1, 2010 onwards. See Note 1, “Basis of Preparation and Consolidation” for additional details. During the third quarter of 2011, all outstanding Redeemable Series C preference ordinary shares were repurchased and canceled.

          For the three and nine months ended September 30, 2011 and 2010, ordinary shares available for issuance under share based compensation plans of 10.0 million and 10.0 million, and 12.7 million and 12.7 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 nine months ended September 30, 2011 and 2010, ordinary shares available for issuance under the purchase contracts associated with the 10.75% Units of nil and nil, and 31.0 million and 31.5 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 Note 7, “Share Capital,” and 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.