Report on the Third Quarter Our Reinsurance: solid underwriting and fast responses, the whole world over.

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1 Report on the Third Quarter Our : solid underwriting and fast responses, the whole world over. Executive Group Offices MAKE YOUR WORLD GO 2014, plc companies. All rights reserved. I MAKE YOUR WORLD GO 1

2 XL: Beyond Re Reason. Intuition. Experience. The kind that you only get from over 200 years combined experience in the business. And that s just our leadership team. Ready for anything As well as knowing what s already happened, we re tuned into what s next. Scanning the horizon for new trends. Always watching out for new threats. Reach and reputation Across the world, you ll find the same XL qualities: underwriting excellence, sharp reactions and transparent pricing. The best individual talent worldwide, working together as a team. Reinforced Real financial strength. Which means real security for you. Reliable A broad international mix with a consistent global approach. So wherever you are, and whatever the market conditions, you ll always get the highest quality products and services. Refined We use specialists for different product lines and different geographical areas. Recommended and respected Altogether, it s why we re ranked among the top reinsurance groups*. And it s why most of the world s 500 leading insurance companies choose us to help make their world go. * Based on Standard & Poor s Global Highlights 2014 Our vision Make your world go. That s what we promise our clients. This means giving them the most inventive and intelligent answers, dependable, clear underwriting and excellent service. By doing this, we ll also give our shareholders the best possible returns. And together, we ll all move the world forward. Executive Group Offices 2

3 A leading global reinsurer Executive Group North America Bermuda International Offices Offices Offices Headquartered in Stamford, CT Hamilton, Bermuda Branch offices in Atlanta, GA, Boston, MA, Chicago, IL, Dallas, TX, Fresno, CA, Hartford, CT, Los Angeles, CA, New York, NY, Philadelphia, PA, Walnut Creek, CA, and Toronto, Canada Coverage Headquartered in Dublin, Ireland Branch office in Le Mans, Paris, London, Zurich, Singapore, Dubai, Buenos Aires, Bogotá, and Sao Pãulo Coverage Includes Property, Casualty, Accident and Health, and Property Facultative Market Coverage is provided to insurance companies domiciled in the US and Canada A broad range of risks, including US and International Property Catastrophe and Specialty risks solely on a treaty basis Market Property Catastrophe coverage is provided to insurance companies domiciled in the United States, Canada, United Kingdom, Japan, Australia, New Zealand and the Caribbean Coverage A broad range of products including property, casualty, marine, energy, aviation, aerospace, retrocession, surety, engineering on a treaty basis and property facultative. Offices Market Coverage is provided to companies domiciled in Europe, Latin America, Middle East, Africa, Asia and Australasia. 3

4 A Message from our Chief Executive Third Quarter 2014 As the year end and January renewals period quickly approach, this is a good time for our industry to take stock of what is needed to turn ongoing market challenges into opportunities not just for us as reinsurers, but more importantly for our clients and for the industry. While market conditions are certainly competitive, we should be devoting our attention and come up with sensible solutions to current and emerging risks such as cyber, political instability, terrorism and the large gap between insured and economic losses in major events. We, as an industry, need to find innovative ways to help our ceding partners protect their balance sheets while tackling these and other issues. That s what we re focused on here at XL. In addition to offering traditional reinsurance products and services to address complex risks in developed markets, we are successfully pursuing growth opportunities in developing markets that provide value to us as well as to the regions where we operate. For example, we are continuing to build our operations in the MENA and Asia regions and we are growing our capital markets business through New Ocean Capital Management and other initiatives. This is reflected in our recently-announced third quarter and year-to-date results. They included a combined ratio of 79.2% for the quarter, more than 6 percentage points better than in the third quarter of The combined ratio, excluding prior year development, for the quarter was 82.7% compared to 102.4% for the prior year quarter. On a year-to-date basis XL s segment generated a combined ratio of 77.1%, which compares favorably to the 80.1% achieved in the prior year period. Excluding the impact of prior year releases our combined ratio was 84.3%, which compares favorably to the 92.9% generated for the prior year period. You can read more in this brochure about our third quarter and year-to-date 2014 performance as well as find the contact information of some of those involved in making it happen. While we, like many of our peers within the industry, benefited from a lower level of catastrophe activity, we also continued to face the same competitive market conditions that have plagued our industry for the past few years, including cancellations, share reductions and increased risk retention by clients. This has caused us to reduce our Gross Written Premiums on a yearto-date basis by 5.9 percent compared to the prior year period. Despite this, I am looking forward to the renewal season for several reasons: First, based on discussions at this year s Monte Carlo and Baden-Baden conferences, many clients would like to consolidate their reinsurance panel to include a tighter group of major trading partners. Given XL s global footprint, multi-line capabilities and long-term relationships, we are ideally situated for such an environment. Second, based on our track record, I have supreme confidence in our underwriting team s ability to navigate its way through the harshest of trading conditions. Last, but not least, this will be my final opportunity to work closely with you and my colleagues at XL before my retirement at year end. It has been a pleasure to work with so many high caliber colleagues, brokers and clients over the last 21 years, especially during the past nine years in my role leading XL s global reinsurance operations. Needless to say, I will miss my regular interactions with you at industry conferences and other business events. Many thanks for your support over the years. We at XL have worked diligently to provide top level service and solutions to the world s most complex risks over the years. I can assure you that you will continue to receive that same high quality service and innovative insight from XL in the years to come. Executive Group Offices James H. Veghte Executive Vice President & Chief Executive, s Operations 4

5 Executive Group James H. Veghte Executive Vice President & Chief Executive s Operations John P. Welch President & Chief Executive Officer XL America Inc. Charles Cooper President & Chief Underwriting Officer XL Re Ltd David Watson International Business Group Leader & Chief Executive Officer XL Re Europe Executive Group Philippe Rochaix General Manager, Global Emerging Markets Derrick Irby Executive Vice President & Chief Financial Officer s Operations Jean-Marc Wassen Chief Actuarial Officer s Operations Offices 5

6 Financial Highlights Gross premiums written Net premiums earned Three months ended September 30, 2014 Nine months ended September 30, 2014 $276.3 million $1.63 billion $435.3 million $1.29 billion Loss ratio 48.1% 46.7% Combined ratio 79.2% 77.1% : Financial Ratings Ratings as of September 30, 2014 A (Excellent) / Stable A.M. Best A+ (Strong) / Stable Standard & Poor s Gross premiums written distribution (Three months ended September 30, 2014) Gross premiums written distribution (Nine months ended September 30, 2014) By business unit 44.1% North America 42.9% International 13.0% Bermuda By business unit 22.1% North America 42.5% International 35.4% Bermuda Executive Group By product group 15.3% Property CAT 40.1% Property Other 13.0% Casualty Professional 15.5% Casualty Other 4.9% Other 11.2% Marine & Energy, Aviation & Satellite By product group 29.7% Property CAT 32.1% Property Other 7.4% Casualty Professional 14.9% Casualty Other 9.5% Other 6.4% Marine & Energy, Aviation & Satellite Offices 6

7 Key Results and Activities (At and for the three months ended September 30, 2014) Strong underwriting performance included a combined ratio of 79.2% for the quarter, more than 6 percentage points better than in the third quarter of This resulted in an underwriting profit of $90.5 million. The combined ratio, excluding prior year development, for the quarter was 82.7% compared to102.4% for the prior year quarter. Gross premiums written for the quarter were $276.3 million, a 21% decrease from the prior year quarter, predominantly driven by timing and unfavorable renewals in Casualty Treaty in North America and share decreases, timing and cancellations in International Casualty Treaty, largely offset by reinstatement premium adjustments related to losses reported in prior years. Net premiums earned for the quarter were $435.3 million, down by 2.5%, driven by premium adjustments on prior years and the overall earn through of lower current quarter premiums. Operational achievements so far this year included: Focusing on the growth of the capital markets business with the hiring of a Chief Operating Officer for New Ocean Capital Management, which continues to attract third party capital. Continuing to build operations in the MENA region. Releasing new XLeRate 2.0 integrated platform that will allow the segment to further leverage analytics. Attracting and developing talent, including the appointment of Anne Bontoux to lead the European casualty practice and the transfer of Emmanuel Jacquemin to the Bogotá office to assume the role of General Manager of the Colombia operation, replacing Hernan Moreno upon his retirement. Executive Group Offices 7

Regional Contacts XL Re Ltd Bermuda Charles Cooper President & Chief

(BDA) Direct +1 441 294 7617 Mobile +1 441 524 7617 paul.

com Mark Berry Senior Vice President, International Property &

Direct: +1 203 964 3973 Mobile: +1 203 219 7749 craig.wenzel@xlgroup.

Mobile: +1 441 524 7556 mark.twite@xlgroup.

Direct: +1 441 294 7526 Mobile: +1 441 524 7526 wade.stier@xlgroup.

Underwriter Direct +1 441 294 7146 Mobile +1 441 524 7146 tristan.

8 Regional Contacts XL Re Ltd Bermuda Charles Cooper President & Chief Underwriting Officer Direct Mobile Paul Simons Senior Vice President, Head of US Property Treaty (BDA) Direct Mobile Mark Berry Senior Vice President, International Property & Specialty (BDA) Direct Mobile Craig Wenzel Senior Vice President, Head of Capital Markets Direct: Mobile: Mark Twite Chief Financial Officer Direct: Mobile: Executive Group Offices Wade Stier Vice President US Property Direct: Mobile: Tristan Abend Vice President, International Property Treaty Underwriter Direct Mobile Megan Kempe Underwriter, Property Direct Lindsay Botelho Underwriter, Property Direct Kavan Tucker Underwriter, Specialty Direct Mobile

9 Offices Argentina Av. del Libertador 6250, 1st Floor C1428ARS - Buenos Aires Tel : Bermuda Switzerland Limmatstrasse 250 PO Box Zurich Tel: United Arab Emirates Seaview House 70 Seaview Avenue Stamford, CT Tel: North California Blvd., Suite 740 Walnut Creek, CA Tel: O Hara House One Bermudiana Road Hamilton HM08 Tel: Brazil Avenida Brigadeiro Faria Lima º Andar CEP , Itaim Bibi, São Paulo Tel: Canada 100 Yonge Street, Suite 1702 Toronto, Ontario M5C 2W1 Tel: Colombia Carrera 7a No Oficina 802 Edificio ScotiaBank Bogotá, Colombia Tel: France 2 boulevard Marie et Alexandre Oyon CS Le Mans Cedex 2 Tel: +33 (0) rue Taitbout Paris Cedex 09 Tel: +33 (0) Ireland Unit 7, Level 15, The Gate Dubai International Financial Centre Dubai, Unted Arab Emirates Tel: United Kingdom XL House 70 Gracechurch Street London EC3V OXL Tel: United States 115 Perimeter Center Place, Suite 545 Atlanta, GA Tel: State Street, Suite 2801 Boston, MA South LaSalle Street, Suite 600 Chicago, IL Tel: Dallas Parkway, Suite 770 Dallas, TX Tel: River Park West, Suite 160 Fresno, CA Tel: Constitution Plaza, 15th Floor Hartford, CT Tel: plc, through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. plc s reinsurance companies are among the world s leading reinsurers. They offer products that include aerospace, property, casualty, marine and specialty. The world s top insurers choose us to help move their businesses forward. To learn more, visit xlgroup.com/ reinsurance. For a complete list of our underwriters, please visit our website. REINSURANCE WEB LINK: GO HERE. Executive Group Offices XL House 8 St. Stephen s Green Dublin 2, Ireland Tel: Singapore 8 Marina View #40-05 Asia Square Tower 1 Singapore Tel: Broadway, 25th Floor New York, NY Tel: / Two Logan Square 100 N. 18th Street, Suite 300 Philadelphia, PA Tel: South Figueroa Street, Suite 1700 Los Angeles, CA This summary does not constitute an offer, solicitation or advertisement in any jurisdiction, nor is it intended as a description of any products or services of any of the Company s operating subsidiaries. is the global brand used by plc s reinsurance companies. is a trademark of plc companies. 19

MAKE YOUR WORLD GO. XL Group Reinsurance

MAKE YOUR WORLD GO. XL Group Reinsurance Re Report on the Fourth Quarter and Year End Results 2013. Our : solid underwriting and fast responses, the whole world over. MAKE YOUR WORLD GO 2014, plc companies. All rights reserved. I MAKE YOUR WORLD