MAKE YOUR WORLD GO. XL Group Reinsurance

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1 Re Report on the Fourth Quarter and Year End Results Our : solid underwriting and fast responses, the whole world over. 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 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 2013 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. 2

3 A leading global reinsurer North America Bermuda International Offices Offices Offices Headquartered in Stamford, CT Hamilton, Bermuda Branch offices in Atlanta, GA, Chicago, IL, Dallas, TX, Hartford, CT, New York, NY, Philadelphia, PA, Walnut Creek, CA, and Toronto, Canada Coverage Dublin, Le Mans, Paris, London, Zurich, Singapore, 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. 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 Fourth Quarter and Year End 2013 If the January 2014 renewal season is any indication of the year ahead, all of us in the reinsurance industry should expect a period of intense competition and abundant capacity across the market. In fact, a recent report by rating agency Standard & Poor s warned that competition-related risks have become the most prominent threat to the global reinsurance sector, even surpassing macroeconomic risks. In the report titled Past The Tipping Point: Competition And Soft Pricing Could Lead To Rating Pressure For Global Reinsurers, S&P stated: Our discussions with reinsurers management teams in 2014 will focus heavily on underwriting discipline, rate adequacy, and profitability prospects for the next months. Many of these companies will prove successful in navigating this softening market by adhering to established underwriting and risk controls. It will be those companies at the margins and those that relax their rigor that likely succumb to consolidation or suffer negative rating actions. Those of you who know XL realize that we have and will continue to adhere to the core pillars of our operating philosophy underwriting discipline, robust analytics and superior service to our clients and brokers. Our commitment to this philosophy has allowed us to successfully navigate through difficult market conditions globally. For example, despite tough trading conditions throughout the world and significant catastrophe activity experienced in 2013 in the international markets, XL s Operations produced a combined ratio of 85.1% for the quarter and 81.4% for the year ended December 31, 2013, the latter being 5.5 points better than the prior year. This performance resulted in an underwriting profit for the fourth quarter as well as for the year our eighth consecutive year of producing an underwriting profit. This not only contributed significantly to s overall progress but enabled us to meet the needs of the various markets we serve. You can read more, in this brochure, about our fourth quarter and full year 2013 performance and the contact information of some of those involved in making it happen. Needless to say, I am proud of everyone in our operations who contributed to our performance. Despite ongoing market challenges, I was also pleased with our January renewal season efforts. We continued to monitor rate adequacy on the portfolio in the same way we have for more than a decade. We also spent a good deal of time developing a strategy for our individual trading partners prior to the renewal. While the strength of relationships is something universally claimed by reinsurers as a core advantage, there is no doubt in my mind that our performance during these renewals validated our status as a long-term stable trading partner with brokers and our clients. Given the extremely competitive market conditions, we also realize that brokers and clients have more choices than ever before. With this in mind, we remain focused on providing the innovative solutions and superior service that our trading partners have come to expect from us. James H. Veghte Executive Vice President & Chief Executive, s Operations 4

5 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 Philippe Rochaix President and Chief Operating Officer of XL Re Latin America Ltd Derrick Irby Executive Vice President & Chief Financial Officer s Operations Jean-Marc Wassen Chief Actuarial Officer s Operations 5

6 Financial Highlights Three months ended December 31, 2013 Year ended December 31, 2013 Gross premiums $164.8 million $1.89 billion written Net premiums earned $445.0 million $1.75 billion Loss ratio 56.0% 51.6% Combined ratio 85.1% 81.4% : Financial Ratings Ratings as of December 31, 2013 A (Excellent) / Stable A.M. Best A+ (Strong) / Stable Standard & Poor s Gross premiums written distribution (Three months ended December 31, 2013) By business unit 56.2% North America 43.1% International 0.7% Bermuda By product group 10.2% Property CAT 34.9% Property Other 20.5% Casualty Professional 25.4% Casualty Other 4.8% Other 4.2% Marine & Energy, Aviation & Satellite (Year ended December 31, 2013) By business unit 27.1% North America 43.5% International 29.4% Bermuda By product group 29.4% Property CAT 31.0% Property Other 11.8% Casualty Professional 16.2% Casualty Other 6.7% Other 4.9% Marine & Energy, Aviation & Satellite 6

7 Key Results and Activities (At and for the three months ended December 31, 2013) Solid underwriting results included a combined ratio of 85.1% for the quarter and 81.4% for the year ended December 31, 2013, the latter representing 5.5 points better than the prior year. This performance resulted in an underwriting profit of $66.2 million and $325.3 million, respectively. The combined ratio, excluding prior year development and the impact of natural catastrophe losses, for the quarter was 73.6%, compared to 72.9% for the prior year quarter. Gross premiums written for the quarter were $164.8 million, an increase of 4.4% from the prior year quarter, predominantly driven by new casualty business in the International business group and additional crop premium from our North American facility, partially offset by higher catastrophe related reinstatement premiums in the prior year quarter associated with Storm Sandy. Net premiums earned for the quarter were $445.0 million, down by 9.8%, driven by re-underwriting activities in the International business group and competitive market conditions. Recently and throughout 2013, XL s segment remained focused on expanding its pool of talent and providing innovative solutions. A few examples of this include: Launching of New Ocean Capital Management Limited, a Bermuda-based venture with funds managed by private equity firm Stone Point Capital, to act as an asset manager in reinsurance capital market products. Industry veteran Chris McKeown joined the company as CEO. Growing its Property Facultative presence in the US, Europe and Asia with the opening of offices in Dallas and Philadelphia and the appointments of Christian Daniele as Property Facultative Senior Underwriter in Zurich and Pamela Ross as Property Facultative Senior Underwriter in Singapore. Strengthening of European Casualty team with the appointment of Marcus Gonzales as General Manager of the UK Branch Head of International Casualty for Operations, and André Liebkopf as Senior Vice President, Head of Aviation. Mr. Liebkopf, who is based in Zurich, reports to Mr. Gonzales. 7

Regional Contacts XL Re Ltd Bermuda Charles Cooper President & Chief

+1 441 294 7617 Fax +1 441 292 0876 Mobile +1 441 524 7617 paul.simons@xlgroup.

Direct +1 441 294 7141 Mobile +1 441 524 7141 Fax +1 441 292 0876 mark.

com Craig Wenzel Senior Vice President, Head of Capital Markets Direct: +1 203

com Mark Twite Chief Financial Officer Direct: +1 441 294 7556 Mobile: +1

com Wade Stier Vice President US Property Direct: +1 441 294 7526 Mobile: +1

com Tristan Abend Vice President, International Property Treaty Underwriter

8 Regional Contacts XL Re Ltd Bermuda Charles Cooper President & Chief Underwriting Officer Direct Fax Mobile Paul Simons Senior Vice President, Head of US Property Treaty (BDA) Direct Fax Mobile Mark Berry Senior Vice President, International Property & Specialty (BDA) Direct Mobile Fax Craig Wenzel Senior Vice President, Head of Capital Markets Direct: Mobile: Mark Twite Chief Financial Officer Direct: Mobile: Wade Stier Vice President US Property Direct: Mobile: Fax: Tristan Abend Vice President, International Property Treaty Underwriter (BDA) Direct Fax Mobile tristan.abend@xlgroup.com Megan Kempe Underwriter, Property Direct Fax megan.kempe@xlgroup.com Lindsay Botelho Underwriter, Property Direct Fax lindsay.botelho@xlgroup. com 8

9 Argentina Av. del Libertador 6250, 1st Floor C1428ARS - Buenos Aires Tel : Bermuda O Hara House One Bermudiana Road Hamilton HM08 Tel: Brazil Rua Dr. Renato Paes de Barros º Andar , São Paulo Tel: Canada 100 Yonge Street, Suite 1702 Toronto, Ontario M5C 2W1 Tel: Singapore 8 Marina View #40-05 Asia Square Tower 1 Singapore Tel: Switzerland Limmatstrasse 250 PO Box Zurich Tel: United Kingdom XL House 70 Gracechurch Street London EC3V OXL Tel: United States 115 Perimeter Center Place, Suite 545 Atlanta, GA 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. 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 XL House 8 St. Stephen s Green Dublin 2, Ireland Tel: South LaSalle Street, Suite 600 Chicago, IL Tel: Dallas Parkway, Suite 770 Dallas, TX Tel: Constitution Plaza, 15th Floor Hartford, CT Tel: Broadway, 25th Floor New York, NY Tel: / Two Logan Square 100 N. 18th Street, Suite 300 Philadelphia, PA Tel: Seaview House 70 Seaview Avenue Stamford, CT Tel: 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 North California Blvd., Suite 740 Walnut Creek, CA Tel: is the global brand used by plc s reinsurance companies. is a trademark of plc companies. 9

MAKE YOUR WORLD GO. XL Group Reinsurance

MAKE YOUR WORLD GO. XL Group Reinsurance Re new Executive Group Report on the second quarter & first half of 2012. Our : solid underwriting and fast responses, the whole world over. MAKE YOUR WORLD GO 2012, plc companies. All rights reserved.