| | |
Public Offering
Price(1) |
| |
Underwriting
Discounts |
| |
Proceeds to Us
Before Expenses(1) |
| |||||||||
Per 2047 Subordinated Note
|
| | | | % | | | | | | % | | | | | | % | | |
Total
|
| | | € | | | | | | € | | | | | | € | | | |
| Barclays | | |
Credit Suisse
|
| |
Goldman Sachs & Co. LLC
|
| | HSBC | |
| | | | | S-ii | | | |
| | | | | S-ii | | | |
| | | | | S-iii | | | |
| | | | | S-iii | | | |
| | | | | S-iii | | | |
| | | | | S-1 | | | |
| | | | | S-12 | | | |
| | | | | S-21 | | | |
| | | | | S-23 | | | |
| | | | | S-24 | | | |
| | | | | S-25 | | | |
| | | | | S-26 | | | |
| | | | | S-46 | | | |
| | | | | S-49 | | | |
| | | | | S-53 | | | |
| | | | | S-57 | | | |
| | | | | S-57 | | | |
| | | | | S-57 | | |
| | |
Three Months Ended
March 31, |
| |
Years Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| | | | |||||||||||||||||||||
| | |
(U.S. dollars in thousands)
|
| |||||||||||||||||||||||||||
Income Statement Data: | | | | | | | |||||||||||||||||||||||||
Net premiums earned
|
| | | $ | 2,522,791 | | | | | $ | 2,354,610 | | | | | $ | 9,777,934 | | | | | $ | 8,226,425 | | | | | $ | 5,895,070 | | |
Net investment income
|
| | | | 200,532 | | | | | | 205,886 | | | | | | 827,133 | | | | | | 872,370 | | | | | | 918,625 | | |
Net realized gains (losses) on investments – excluding
Life Funds Withheld Assets |
| | | | 4,218 | | | | | | (8,416) | | | | | | 112,689 | | | | | | 19,997 | | | | | | 122,991 | | |
Net realized gains (losses) on investments – Life Funds Withheld Assets
|
| | | | 33,068 | | | | | | 32,070 | | | | | | 149,991 | | | | | | 209,915 | | | | | | (15,520) | | |
Net unrealized gains (losses) on investments, Trading – Life Funds Withheld Assets
|
| | | | (1,406) | | | | | | 69,096 | | | | | | 109,458 | | | | | | (27,734) | | | | | | (9) | | |
Net realized and unrealized gains (losses) on derivative instruments
|
| | | | (7,069) | | | | | | (3,622) | | | | | | 2,521 | | | | | | 53,123 | | | | | | 29,886 | | |
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments – Life Funds Withheld Assets
|
| | | | (50,101) | | | | | | (236,080) | | | | | | (540,090) | | | | | | (151,691) | | | | | | (488,222) | | |
Net income (loss) from investment fund affiliates
|
| | | | 38,261 | | | | | | (4,579) | | | | | | 70,758 | | | | | | 73,320 | | | | | | 95,816 | | |
Fee income and other
|
| | | | 13,661 | | | | | | 8,262 | | | | | | 35,692 | | | | | | 33,201 | | | | | | 43,630 | | |
Net losses and loss expenses incurred
|
| | | | 1,583,456 | | | | | | 1,382,485 | | | | | | 6,072,835 | | | | | | 4,766,200 | | | | | | 3,258,393 | | |
Claims and policy benefits
|
| | | | 7,291 | | | | | | 4,937 | | | | | | 28,244 | | | | | | 115,997 | | | | | | 242,963 | | |
Acquisition costs, operating expenses and foreign exchange gains and losses
|
| | | | 900,571 | | | | | | 884,829 | | | | | | 3,674,455 | | | | | | 3,306,891 | | | | | | 2,041,865 | | |
Interest expense
|
| | | | 50,711 | | | | | | 52,303 | | | | | | 209,763 | | | | | | 205,215 | | | | | | 134,106 | | |
Loss (Gain) on sale of subsidiary
|
| | | | — | | | | | | — | | | | | | (7,088) | | | | | | — | | | | | | 666,423 | | |
Extinguishment of debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5,592 | | | | | | — | | |
Income (loss) before non-controlling interests, net income from operating affiliates and income tax expense
|
| | | | 213,332 | | | | | | 92,673 | | | | | | 567,877 | | | | | | 909,031 | | | | | | 258,517 | | |
Income (loss) from operating affiliates
|
| | | | 13,609 | | | | | | 12,650 | | | | | | 44,397 | | | | | | 44,740 | | | | | | 107,218 | | |
Gain on sale of operating affiliate
|
| | | | — | | | | | | — | | | | | | — | | | | | | 340,407 | | | | | | — | | |
Preference share dividends(1)
|
| | | | 57,970 | | | | | | 57,464 | | | | | | 121,868 | | | | | | 98,721 | | | | | | 76,743 | | |
Net income (loss) attributable to common shareholders
|
| | | $ | 152,843 | | | | | $ | 21,885 | | | | | $ | 440,968 | | | | | $ | 1,207,152 | | | | | $ | 188,340 | | |
| | |
Three Months Ended
March 31, |
| |
Years Ended December 31,
|
||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2016
|
| |
2015
|
| |
2014
|
|||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| | | | ||||||||||||||||||||
| | |
(U.S. dollars in thousands)
|
|||||||||||||||||||||||||||
Balance Sheet Data: | | | | | | | ||||||||||||||||||||||||
Total investments – available for sale
|
| | | $ | 32,006,452 | | | | | $ | 33,843,284 | | | | | $ | 31,919,126 | | | | | $ | 33,753,898 | | | | | $ | 30,484,053 | |
Cash and cash equivalents
|
| | | | 3,352,651 | | | | | | 2,820,897 | | | | | | 3,426,988 | | | | | | 3,256,236 | | | | | | 2,521,814 | |
Restricted cash
|
| | | | 160,523 | | | | | | 161,019 | | | | | | 153,504 | | | | | | 154,992 | | | | | | — | |
Investments in affiliates
|
| | | | 2,172,611 | | | | | | 1,953,711 | | | | | | 2,177,645 | | | | | | 1,708,899 | | | | | | 1,637,620 | |
Unpaid losses and loss expenses recoverable
|
| | | | 5,685,623 | | | | | | 5,374,604 | | | | | | 5,491,297 | | | | | | 5,262,706 | | | | | | 3,429,368 | |
Premiums receivable
|
| | | | 6,746,116 | | | | | | 6,041,000 | | | | | | 5,522,976 | | | | | | 4,712,493 | | | | | | 2,473,736 | |
Total assets
|
| | | | 61,024,619 | | | | | | 60,645,692 | | | | | | 58,434,102 | | | | | | 58,682,938 | | | | | | 45,046,819 | |
Unpaid losses and loss expenses
|
| | | | 26,445,124 | | | | | | 25,913,484 | | | | | | 25,939,571 | | | | | | 25,439,744 | | | | | | 19,353,243 | |
Future policy benefit reserves
|
| | | | 3,520,069 | | | | | | 4,020,602 | | | | | | 3,506,047 | | | | | | 4,163,500 | | | | | | 4,707,199 | |
Funds withheld on GreyCastle life retrocession
arrangements (net of future policy benefit reserves recoverable) |
| | | | 954,327 | | | | | | 998,391 | | | | | | 998,968 | | | | | | 914,629 | | | | | | 1,155,016 | |
Unearned premiums
|
| | | | 8,581,973 | | | | | | 8,217,539 | | | | | | 7,293,028 | | | | | | 7,043,358 | | | | | | 3,973,132 | |
Notes payable and debt
|
| | | | 2,648,353 | | | | | | 2,653,895 | | | | | | 2,647,677 | | | | | | 2,644,970 | | | | | | 1,662,580 | |
Shareholders’ equity
|
| | | | 13,000,626 | | | | | | 13,667,718 | | | | | | 12,960,679 | | | | | | 13,654,463 | | | | | | 11,435,766 | |
Book value per common share
|
| | | | 41.61 | | | | | | 40.83 | | | | | | 40.98 | | | | | | 39.61 | | | | | | 39.31 | |
Fully diluted tangible book value per common share(2)
|
| | | | 32.83 | | | | | | 32.62 | | | | | | 32.21 | | | | | | 31.52 | | | | | | 36.79 | |
Operating Ratios: | | | | | | | ||||||||||||||||||||||||
Loss and loss expense ratio(3)
|
| | | | 62.8% | | | | | | 58.8% | | | | | | 62.2% | | | | | | 58.4% | | | | | | 57.0% | |
Underwriting expense ratio(4)
|
| | | | 31.5% | | | | | | 33.7% | | | | | | 32.0% | | | | | | 33.6% | | | | | | 31.2% | |
Combined ratio(5)
|
| | | | 94.3% | | | | | | 92.5% | | | | | | 94.2% | | | | | | 92.0% | | | | | | 88.2% | |
Ratio of earnings to fixed charges
|
| | | | 5.0x | | | | | | 3.4x | | | | | | 3.5x | | | | | | 9.1x | | | | | | 3.2x | |
Ratio of earnings to combined fixed charges and preference dividends
|
| | | | 2.4x | | | | | | 1.7x | | | | | | 2.3x | | | | | | 6.3x | | | | | | 2.1x |
| | |
Three
Months Ended March 31, |
| |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016(1)
|
| |
2015(1)
|
| |
2014(1)
|
| |
2013(1)
|
| |
2012(1)
|
| | ||||||||||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Ratio of earnings to fixed charges
|
| | | | 5.0x | | | | | | 3.5x | | | | | | 9.1x | | | | | | 3.2x | | | | | | 7.6x | | | | | | 5.0x | | | | ||
Ratio of earnings to combined
fixed charges and preference dividends |
| | | | 2.4x | | | | | | 2.3x | | | | | | 6.3x | | | | | | 2.1x | | | | | | 5.2x | | | | | | 3.5x | | | |
| | |
March 31, 2017
|
| |||||||||
| | |
Actual
|
| |
As Adjusted(4)
|
| ||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||
| | |
(U.S. dollars in thousands)
|
| |||||||||
Notes payable and debt(1)(2) | | | | ||||||||||
2.30% Senior Notes due 2018
|
| | | $ | 298,854 | | | | | $ | 298,854 | | |
5.75% Senior Notes due 2021
|
| | | | 398,061 | | | | | | 398,061 | | |
6.375% Senior Notes due 2024
|
| | | | 349,166 | | | | | | 349,166 | | |
4.45% Subordinated Notes due 2025
|
| | | | 493,531 | | | | | | 493,531 | | |
6.25% Senior Notes due 2027
|
| | | | 323,414 | | | | | | 323,414 | | |
5.25% Senior Notes due 2043
|
| | | | 296,460 | | | | | | 296,460 | | |
5.50% Subordinated Notes due 2045
|
| | | | 488,867 | | | | | | 488,867 | | |
Subordinated Notes offered hereby(3)
|
| | | | — | | | | | | | | |
Total notes payable and debt
|
| | | $ | 2,648,353 | | | | | $ | | | |
Shareholders’ Equity: | | | | ||||||||||
Common shares
|
| | | $ | 2,637 | | | | | $ | 2,637 | | |
Additional paid in capital
|
| | | | 7,934,161 | | | | | | 7,934,161 | | |
Accumulated other comprehensive income
|
| | | | 844,974 | | | | | | 844,974 | | |
Retained earnings
|
| | | | 2,193,112 | | | | | | 2,193,112 | | |
Shareholders’ equity attributable to XL Group Ltd
|
| | | $ | 10,974,884 | | | | | $ | 10,974,884 | | |
Non-controlling interest in equity of consolidated subsidiaries
|
| | | | 2,025,742 | | | | | | 1,436,242 | | |
Total shareholders’ equity
|
| | | $ | 13,000,626 | | | | | $ | 12,411,126 | | |
Total capitalization
|
| | | $ | 15,648,979 | | | | | $ | | | |
|
Underwriters
|
| |
Principal Amount
of the Subordinated Notes |
| |||
Barclays Bank PLC
|
| | | € | | | |
Credit Suisse Securities (Europe) Limited
|
| | | | | | |
Goldman Sachs & Co. LLC
|
| | | | | | |
HSBC Bank plc
|
| | | | | | |
Total
|
| | | € | | |
| | |
Paid by Us
|
| |||
Per Note
|
| | | | % | | |
Total
|
| | | € | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 2 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 8 | | | |
| | | | | 9 | | | |
| | | | | 10 | | | |
| | | | | 17 | | | |
| | | | | 21 | | | |
| | | | | 24 | | | |
| | | | | 26 | | | |
| | | | | 27 | | | |
| | | | | 41 | | | |
| | | | | 44 | | | |
| | | | | 44 | | | |
| | | | | 44 | | | |
|
PART II INFORMATION NOT REQUIRED IN PROSPECTUS
|
| | | | II-0 | | |
| | |
(Unaudited)
Three Months Ended |
| |
Fiscal Year Ended December 31,
|
| ||||||||||||||||||||||||||||||
| | |
March 31,
2016(1) |
| |
2015(1)
|
| |
2014(1)
|
| |
2013(1)
|
| |
2012(1)
|
| |
2011(1)
|
| ||||||||||||||||||
Ratio of earnings to fixed charges
|
| | | | 3.4 | | | | | | 9.1 | | | | | | 3.2 | | | | | | 7.6 | | | | | | 5.0 | | | | | | (0.4) | | |
Ratio of earnings to combined fixed charges and preference dividends
|
| | | | 1.7 | | | | | | 6.3 | | | | | | 2.1 | | | | | | 5.2 | | | | | | 3.5 | | | | | | (0.3) | | |
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end