Segment Information

3 Months Ended

Mar. 31, 2012

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 of 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. 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 March 31, 2012 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Total
Gross premiums written	$	1,336,634		$	980,350		$	2,316,984		$	86,683		$	2,403,667
Net premiums written		1,036,526			926,702			1,963,228			78,496			2,041,724
Net premiums earned		934,056			423,842			1,357,898			78,520			1,436,418
Net losses and loss expenses		(631,685	)		(222,380	)		(854,065	)		(121,307	)		(975,372	)
Acquisition costs		(128,256	)		(88,244	)		(216,500	)		(7,651	)		(224,151	)
Operating expenses (1)		(185,346	)		(38,747	)		(224,093	)		(2,607	)		(226,700	)
Underwriting profit (loss)	$	(11,231	)	$	74,471		$	63,240		$	(53,045	)	$	10,195
Net investment income		-			-			172,968			75,026			247,994
Net results from structured products (2)		2,819			2,498			5,317			-			5,317
Net fee income and other (3)		(2,020	)		333			(1,687	)		48			(1,639	)
Net realized gains (losses) on investments								24,967			(4,164	)		20,803
Contribution from P&C and Life Operations							$	264,805		$	17,865		$	282,670
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments														702
Net income (loss) from investment fund affiliates and operating affiliates (4)														35,661
Exchange gains (losses)														(12,718	)
Corporate operating expenses														(44,260	)
Interest expense (5)														(27,320	)
Non-controlling interests														(36,557	)
Income tax														(21,550	)
Net income (loss) attributable to XL Group plc													$	176,628
Ratios – P&C operations: (6)
Loss and loss expense ratio		67.6	%		52.5	%		62.9	%
Underwriting expense ratio		33.6	%		29.9	%		32.4	%
Combined ratio		101.2	%		82.4	%		95.3	%

(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 $17.2 million and $12.0 million, respectively.
(3)	Net fee income and other includes operating expenses from the Company’s loss prevention consulting services business.
(4)	The Company records the income related to the alternative funds and to the private investment and operating fund 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.
(6)	Ratios are based on net premiums earned from P&C operations.

Three Months Ended March 31, 2011 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Total
Gross premiums written	$	1,222,349		$	876,771		$	2,099,120		$	97,659		$	2,196,779
Net premiums written		918,990			795,292			1,714,282			89,672			1,803,954
Net premiums earned		875,920			395,776			1,271,696			89,687			1,361,383
Net losses and loss expenses		(788,513	)		(420,352	)		(1,208,865	)		(133,231	)		(1,342,096	)
Acquisition costs		(107,644	)		(73,526	)		(181,170	)		(7,320	)		(188,490	)
Operating expenses (1)		(164,095	)		(45,630	)		(209,725	)		(2,166	)		(211,891	)
Underwriting profit (loss)	$	(184,332	)	$	(143,732	)	$	(328,064	)	$	(53,030	)	$	(381,094	)
Net investment income		-			-			183,565			76,976			260,541
Net results from structured products (2)		3,260			4,214			7,474			-			7,474
Net fee income and other (3)		(5,912	)		1,394			(4,518	)		41			(4,477	)
Net realized gains (losses) on investments								(26,886	)		(39,551	)		(66,437	)
Contribution from P&C and Life Operations							$	(168,429	)	$	(15,564	)	$	(183,993	)
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments														3,567
Net income (loss) from investment fund affiliates and operating affiliates (4)														40,786
Exchange gains (losses)														(9,514	)
Corporate operating expenses														(35,692	)
Interest expense (5)														(41,899	)
Non-controlling interests														(33,336	)
Income tax														32,797
Net income (loss) attributable to XL Group plc													$	(227,284	)
Ratios – P&C operations: (6)
Loss and loss expense ratio		90.0	%		106.2	%		95.1	%
Underwriting expense ratio		31.0	%		30.1	%		30.7	%
Combined ratio		121.0	%		136.3	%		125.8	%

(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 $19.7 million and $12.2 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 and operating fund 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.
(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 March 31, 2012 (U.S. dollars in thousands)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Casualty - professional lines	$	323,821	$	54,908	$	-	$	378,729
Casualty - other lines		167,357		73,238		-		240,595
Property catastrophe		-		102,925		-		102,925
Other property		133,419		135,743		-		269,162
Marine, energy, aviation and satellite		120,100		35,743		-		155,843
Other specialty lines (1)		184,034		-		-		184,034
Other (2)		5,325		21,285		-		26,610
Total P&C Operations	$	934,056	$	423,842	$	-	$	1,357,898
Life Operations:
Other Life		-		-		47,063		47,063
Annuity		-		-		31,457		31,457
Total P&C Operations	$	-	$	-	$	78,520	$	78,520
Total	$	934,056	$	423,842	$	78,520	$	1,436,418

Three Months Ended March 31, 2011 (U.S. dollars in thousands)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Casualty - professional lines	$	315,643	$	53,718	$	-	$	369,361
Casualty - other lines		156,704		51,043		-		207,747
Property catastrophe		-		94,564		-		94,564
Other property		106,921		136,243		-		243,164
Marine, energy, aviation and satellite		125,536		38,428		-		163,964
Other specialty lines (1)		168,666		-		-		168,666
Other (2)		2,450		21,780		-		24,230
Total P&C Operations	$	875,920	$	395,776	$	-	$	1,271,696
Life Operations:
Other Life		-		-		56,764		56,764
Annuity		-		-		32,923		32,923
Total P&C Operations	$	-	$	-	$	89,687	$	89,687
Total	$	875,920	$	395,776	$	89,687	$	1,361,383

(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, structured indemnity and other lines.