COMPUTATION OF EARNINGS PER ORDINARY SHARE AND ORDINARY SHARE EQUIVALENT

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Text Block]

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

          The following table sets forth the computation of basic and diluted earnings per share:

Year Ended December 31
(U.S. dollars in thousands, except per share amounts)	2011			2010			2009
Basic earnings per ordinary share and ordinary share equivalents:
Net income attributable to XL Group plc.	$	(474,760	)	$	603,550		$	74,991
Less: preference share dividends (1)		—			(34,694	)		(80,200	)
Add: gain on redemption of the Redeemable Series C preference ordinary shares		—			16,616			211,816
Net income (loss) attributable to ordinary shareholders	$	(474,760	)	$	585,472		$	206,607
Weighted average ordinary shares outstanding		312,896			336,283			340,612
Basic earnings per ordinary share & ordinary share equivalents outstanding	$	(1.52	)	$	1.74		$	0.61
Diluted earnings per ordinary share and ordinary share equivalents:
Weighted average ordinary shares outstanding – basic	$	312,896		$	336,283		$	340,612
Impact of share based compensation and certain conversion features		—			1,426			354
Weighted average ordinary shares outstanding – diluted	$	312,896		$	337,709		$	340,966
Diluted earnings per ordinary share & ordinary share equivalents outstanding	$	(1.52	)	$	1.73		$	0.61
Dividends per ordinary share	$	0.44		$	0.40		$	0.40

(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 years ended December 31, 2011 and 2010, ordinary shares available for issuance under share based compensation plans of 16.9 million and 12.8 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.