SEGMENT INFORMATION

12 Months Ended

Dec. 31, 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.

Year ended December 31, 2011: (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Corporate			Total
Gross premiums written	$	4,824,665		$	2,073,619		$	6,898,284		$	394,555		$	—		$	7,292,839
Net premiums written		3,707,664			1,725,724			5,433,388			362,362			—			5,795,750
Net premiums earned		3,663,727			1,663,385			5,327,112			363,018			—			5,690,130
Net losses and loss expenses		(2,951,413	)		(1,126,978	)		(4,078,391	)		(535,074	)		—			(4,613,465	)
Acquisition costs		(461,965	)		(324,128	)		(786,093	)		(40,318	)		—			(826,411	)
Operating expenses (1)		(683,814	)		(176,167	)		(859,981	)		(9,311	)		—			(869,292	)
Underwriting profit (loss)	$	(433,465	)	$	36,112		$	(397,353	)	$	(221,685	)	$	—		$	(619,038	)
Net investment income								745,138			318,061			—			1,063,199
Net results from structured products (2)		10,976			12,053			23,029			—			—			23,029
Net fee income and other (3)		(16,370	)		3,903			(12,467	)		219			—			(12,248	)
Net realized gains (losses) on investments								(98,360	)		(89,999	)		—			(188,359	)
Contribution from P&C, Life Operations and Corporate							$	259,987		$	6,596		$	—		$	266,583
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													$	(10,738	)	$	(10,738	)
Net income (loss) from investment fund affiliates and operating affiliates														103,039			103,039
Exchange gains (losses)														40,640			40,640
Corporate operating expenses														(159,158	)		(159,158	)
Interest expense (4)														(154,084	)		(154,084	)
Non-controlling interests														(70,877	)		(70,877	)
Impairment of goodwill (5)														(429,020	)		(429,020	)
Income taxes & other														(61,145	)		(61,145	)
Net income (loss) attributable to XL Group plc																$	(474,760	)
Ratios – P&C operations: (6)
Loss and loss expense ratio		80.6	%		67.8	%		76.6	%
Underwriting expense ratio		31.2	%		30.0	%		30.9	%
Combined ratio		111.8	%		97.8	%		107.5	%

Notes:
(1)	Operating expenses exclude Corporate operating expenses, shown separately.
(2)	The net results from P&C structured products include net investment income, interest expense and operating expenses of $74.6 million, $51.5 million and nil, 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)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments.
(5)	Represents goodwill impairment charges recorded in the fourth quarter of 2011, associated with the Company’s insurance operations.
(6)	Ratios are based on net premiums earned from P&C operations.

Year ended December 31, 2010: (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Corporate			Total
Gross premiums written	$	4,418,380		$	1,842,951		$	6,261,331		$	411,938		$	—		$	6,673,269
Net premiums written		3,461,150			1,538,438			4,999,588			382,075			—			5,381,663
Net premiums earned		3,529,138			1,501,999			5,031,137			382,924			—			5,414,061
Net losses and loss expenses		(2,505,502	)		(706,298	)		(3,211,800	)		(513,833	)		—			(3,725,633	)
Acquisition costs		(418,146	)		(321,008	)		(739,154	)		(49,104	)		—			(788,258	)
Operating expenses (1)		(642,103	)		(175,586	)		(817,689	)		(10,470	)		—			(828,159	)
Underwriting profit (loss)	$	(36,613	)	$	299,107		$	262,494		$	(190,483	)	$	—		$	72,011
Net investment income								803,358			313,172			—			1,116,530
Net results from structured products (2)		14,696			3,075			17,771			—			9,804			27,575
Net fee income and other (3)		(15,564	)		2,488			(13,076	)		249			2			(12,825	)
Net realized gains (losses) on investments								(206,877	)		(54,444	)		(9,482	)		(270,803	)
Contribution from P&C, Life Operations and Corporate							$	863,670		$	68,494		$	324		$	932,488
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													$	(33,843	)	$	(33,843	)
Net income (loss) from investment fund affiliates and operating affiliates														172,474			172,474
Exchange gains (losses)														10,161			10,161
Corporate operating expenses														(90,686	)		(90,686	)
Interest expense (4)														(159,118	)		(159,118	)
Non-controlling interests														(39,831	)		(39,831	)
Loss on termination of guarantee														(23,500	)		(23,500	)
Income taxes & other														(164,595	)		(164,595	)
Net income (loss) attributable to XL Group plc																$	603,550
Ratios – P&C operations: (5)
Loss and loss expense ratio		71.0	%		47.0	%		63.8	%
Underwriting expense ratio		30.0	%		33.1	%		31.0	%
Combined ratio		101.0	%		80.1	%		94.8	%

Notes:
(1)	Operating expenses exclude Corporate operating expenses, shown separately.
(2)	The net results from P&C and Corporate structured products include net investment income, interest expense and operating expenses of $69.0 million, $52.9 million and $1.6 million (credit) and $12.5 million, $1.7 million and $1.0 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)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments and Corporate.
(5)	Ratios are based on net premiums earned from P&C operations.

Year ended December 31, 2009: (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Corporate			Total
Gross premiums written	$	4,251,888		$	1,859,423		$	6,111,311		$	576,162		$	—		$	6,687,473
Net premiums written		3,273,380			1,470,332			4,743,712			532,852			—			5,276,564
Net premiums earned		3,559,793			1,591,946			5,151,739			555,101			—			5,706,840
Net losses and loss expenses		(2,399,747	)		(769,090	)		(3,168,837	)		(677,562	)		—			(3,846,399	)
Acquisition costs		(429,170	)		(346,699	)		(775,869	)		(77,689	)		—			(853,558	)
Operating expenses (1)		(689,131	)		(190,596	)		(879,727	)		(16,009	)		—			(895,736	)
Underwriting profit (loss)	$	41,745		$	285,561		$	327,306		$	(216,159	)	$	—		$	111,147
Net investment income								882,748			332,425			—			1,215,173
Net results from structured products (2)		16,660			26,374			43,034			—			16,609			59,643
Net fee income and other (3)		(14,241	)		6,209			(8,032	)		290			—			(7,742	)
Net realized gains (losses) on investments								(659,687	)		(232,375	)		(29,375	)		(921,437	)
Contribution from P&C, Life Operations and Corporate							$	585,369		$	(115,819	)	$	(12,766	)	$	456,784
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													$	(33,647	)	$	(33,647	)
Net income (loss) from investment fund affiliates and operating affiliates														139,347			139,347
Exchange gains (losses)														(84,813	)		(84,813	)
Corporate operating expenses														(107,877	)		(107,877	)
Interest expense (4)														(172,764	)		(172,764	)
Non-controlling interest in net (income) loss of subsidiary														104			104
Loss on termination of guarantee														—			—
Income taxes & other														(122,143	)		(122,143	)
Net income (loss) attributable to XL Group plc																$	74,991
Ratios – P&C operations: (5)
Loss and loss expense ratio		67.4	%		48.3	%		61.5	%
Underwriting expense ratio		31.4	%		33.8	%		32.1	%
Combined ratio		98.8	%		82.1	%		93.6	%

Notes:
(1)	Operating expenses exclude Corporate operating expenses, shown separately.
(2)	The net results from P&C and Corporate structured products include net investment income, interest expense and operating expenses of $79.3 million, $36.3 million and nil, and $25.3 million, $7.4 million and $1.3 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)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments and Corporate.
(5)	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:

Year ended December 31, 2011: (U.S. dollars in thousands)	Insurance		Reinsurance			Life Operations		Total
P&C Operations:
Casualty – professional lines	$	1,287,230	$	213,949		$	—	$	1,501,179
Casualty – other lines		695,094		256,853			—		951,947
Property catastrophe		—		387,523			—		387,523
Other property		481,148		587,611			—		1,068,759
Marine, energy, aviation and satellite		528,454		130,855			—		659,309
Other specialty lines (1)		665,727		—			—		665,727
Other (2)		3,552		90,776			—		94,328
Structured indemnity		2,522		(4,182	)		—		(1,660	)
Total P&C Operations	$	3,663,727	$	1,663,385		$	—	$	5,327,112
Life Operations:
Other Life	$	—	$	—		$	230,786	$	230,786
Annuity		—		—			132,232		132,232
Total Life Operations	$	—	$	—		$	363,018	$	363,018
Total	$	3,663,727	$	1,663,385		$	363,018	$	5,690,130

Year ended December 31, 2010: (U.S. dollars in thousands)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Casualty – professional lines	$	1,316,172	$	222,720	$	—	$	1,538,892
Casualty – other lines		611,674		219,154		—		830,828
Property catastrophe		—		323,588		—		323,588
Other property		416,806		534,422		—		951,228
Marine, energy, aviation and satellite		540,319		88,855		—		629,174
Other specialty lines (1)		621,839		—		—		621,839
Other (2)		7,577		112,303		—		119,880
Structured indemnity		14,751		957		—		15,708
Total P&C Operations	$	3,529,138	$	1,501,999	$	—	$	5,031,137
Life Operations:
Other Life	$	—	$	—	$	255,905	$	255,905
Annuity		—		—		127,019		127,019
Total Life Operations	$	—	$	—	$	382,924	$	382,924
Total	$	3,529,138	$	1,501,999	$	382,924	$	5,414,061

Year ended December 31, 2009: (U.S. dollars in thousands)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Casualty – professional lines	$	1,276,005	$	196,624	$	—	$	1,472,629
Casualty – other lines		655,126		257,610		—		912,736
Property catastrophe		2,396		312,780		—		315,176
Other property		424,045		560,379		—		984,424
Marine, energy, aviation and satellite		546,806		83,532		—		630,338
Other specialty lines (1)		634,436		—		—		634,436
Other (2)		12,217		172,588		—		184,805
Structured indemnity		8,762		8,433		—		17,195
Total P&C Operations	$	3,559,793	$	1,591,946	$	—	$	5,151,739
Life Operations:
Other Life	$	—	$	—	$	422,594	$	422,594
Annuity		—		—		132,507		132,507
Total Life Operations	$	—	$	—	$	555,101	$	555,101
Total	$	3,559,793	$	1,591,946	$	555,101	$	5,706,840

(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.

          The following table shows an analysis of the Company’s net premiums written by geographical location of subsidiary where the premium is written for the years ended December 31:

P&C operations:
(U.S. dollars in thousands)	2011		2010		2009
Bermuda	$	572,825	$	561,514	$	545,965
United States		2,320,274		2,143,240		2,342,656
Europe and other		2,540,289		2,294,834		1,855,091
Total P&C operations	$	5,433,388	$	4,999,588	$	4,743,712
Life Operations:
(U.S. dollars in thousands)
Bermuda	$	75,219	$	79,033	$	80,498
United States		—		—		31,478
Europe and other		287,143		303,042		420,876
Total Life Operations	$	362,362	$	382,075	$	532,852
Total	$	5,795,750	$	5,381,663	$	5,276,564