Xl Holdings Bhd · MYX:XL

Xl Holdings Bhd — Q1 2018 Earnings Presentation

43 slides from Xl Holdings Bhd's earnings presentation, May 2, 2018

Slide 2: Cautionary Note Regarding Forward-Looking Statements
© 2018, XL Group Ltd. All rights reserved. Cautionary Note Regarding Forward – Looking Statements 2 This presentation contains forward-looking statements. Statements that are not historical facts, including statements about XL Group Ltd.’s (“XL” or the “Company”) beliefs, plans, expectations or futu
Slide 4: Q1 2018 Highlights
© 2018, XL Group Ltd. All rights reserved. Q1 2018 Highlights Compared to the same period last year unless otherwise noted • We are pleased with our solid start to 2018, in-line with our expectations • Maintained market leadership globally across a variety of business lines • Broad rate increases be
Slide 5: Earnings and ROE
© 2018, XL Group Ltd. All rights reserved. Earnings and ROE Compared to the same period last year unless otherwise noted Net Income / (Loss) Available to Common Shareholders • Q1 $152.6 million compared to $152.8 million; $0.58 per share compared to $0.57 • Includes $23 million, or $0.09 per share,
Slide 6: Net Income and Operating Earnings
© 2018, XL Group Ltd. All rights reserved. 0.50 0.82 0.82 0.30 0.09 0.13 0.13 0.20 0.20 0.13 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 Q1-17 AY UW Income ex-Cats Cats PYD NII + Aff. Income Corp. Op. Exp. NCI Other incl. Tax Q1-18 3 153 214 65 23 26 - 50 100 150 200 250 300 Q1-18 Net Income Real. gains/los
Slide 7: Trends in Net Income, Operating Earnings and ROE
© 2018, XL Group Ltd. All rights reserved. 5.4% 7.7% (8.9%) (5.4%) 9.4% 6.5% 9.0% (8.0%) (4.8%) 9.4% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 136 255 (1,029) 116 214 153 302 (1,044) 29 153 (1,100) (900) (700) (500) (300) (100) 100 300 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Trends in N
Slide 8: Underwriting - Insurance
© 2018, XL Group Ltd. All rights reserved. 1,509 1,741 1,660 1,794 1,482 1,186 836 651 694 1,385 2,694 2,577 2,311 2,488 2,867 - 500 1,000 1,500 2,000 2,500 3,000 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Underwriting - Insurance Continuing trend of Loss Ratio improvements driven by disciplined underwriting and
Slide 9: Underwriting - Reinsurance
© 2018, XL Group Ltd. All rights reserved. 1,471 905 666 922 1,671 456 73 39 150 390 1,927 978 705 1,072 2,061 - 500 1,000 1,500 2,000 2,500 3,000 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Underwriting – Reinsurance Loss Ratio impacted by strategic initiatives including the shift in portfolio towards lower vola
Slide 10: Catastrophe Risk Management
© 2018, XL Group Ltd. All rights reserved. 0 500 1,000 1,500 2,000 2,500 3,000 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 PF Q118 PF 1:250 Net Probable Maximum Loss1 by peril region 22 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 PF Q118 PF 1:1
Slide 11: Investments
© 2018, XL Group Ltd. All rights reserved. 113 94 58 (92) (391) (700) (500) (300) (100) 100 300 500 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 167 177 172 186 188 52 74 63 15 56 - 50 100 150 200 250 300 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Investments1 Strong investment results driven by an increase in Net Investment I
Slide 12: Continuous Improvement: Operating Expenses
© 2018, XL Group Ltd. All rights reserved. 491 460 470 454 458 434 434 409 407 450 73 55 52 55 59 34 39 - 23 515 523 508 517 468 473 409 407 473 - 100 200 300 400 500 600 700 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 564 2.17 2.09 1.84 1.69 1.75 - 1.85 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40
Slide 14: Global P&C re/insurance provider specialized in commercial risks
© 2018, XL Group Ltd. All rights reserved. Global P&C re/insurance provider, specialized in providing solutions to commercial risks 14 Market Scale Portfolio Diversification Strong brand and client satisfaction Relevance and global distribution network A unique franchise dedicated to underwriting an
Slide 15: A leader in commercial lines with strong distribution in specialty markets
© 2018, XL Group Ltd. All rights reserved. 0 500 1,000 1,500 2,000 MS Amlin XL Catlin Hiscox Beazley Tokio Marine Kiln QBE Liberty A leader in commercial lines with strong distribution in specialty markets 15 Global reach and broad product suite allows XL to establish a leadership position in Commer
Slide 16: Risk origination power from combination of Insurance and Reinsurance
© 2018, XL Group Ltd. All rights reserved. 48% 45% 7% 68% 32% Risk origination power from combination of Insurance and Reinsurance Our reinsurance companies serve most of the world's 500 leading insurance companies More than 90% of Fortune 500 companies Our insurance companies serve large corporatio
Slide 17: Complete and diversified global set-up
© 2018, XL Group Ltd. All rights reserved. LATIN AMERICA Argentina Brazil Colombia Mexico N.AMERICA Bermuda Canada US ASIA PACIFIC Australia China Hong Kong India Japan** Malaysia Singapore EUROPE, MIDDLE EAST & AFRICA Austria Belgium Denmark France Germany Ireland Italy Norway Spain Sweden Switzerl
Slide 18: Our P&C Operating Model
© 2018, XL Group Ltd. All rights reserved. Our P&C Operating Model business groups aligned to drive underwriting and claims excellence with consistent quality standards 18 Global Lines Insurance North America Insurance International Insurance Reinsurance 4 Risk Origination benefit from the combinati
Slide 19: Portfolio Diversification
© 2018, XL Group Ltd. All rights reserved. 22% 28% 20% 30%37% 23% 40% Portfolio Diversification Dual platform 19 Casualty & Professional Property Catastrophe Property Non-Catastrophe Global Lines North America International Specialty & Other Broad range of P&C risks Well positioned to benefit from a
Slide 20: Global Lines Insurance product mix
© 2018, XL Group Ltd. All rights reserved. Rich and diversified product mix with varied product lines Global Lines Insurance 20 UW Unit Distinctive Advantage Fine Art & Specie and Private Clients Dominant position in the London Market with ability to offer a complete suite of products Equine, Livest
Slide 21: Insurance underwriting units: Professional, Construction, Casualty
© 2018, XL Group Ltd. All rights reserved. 21(1) Fitch research UW Unit Distinctive Advantage Professional Recognized brand, ranked among the top writers world-wide due to our track record of superior technical expertise U.S. market activity is concentrated within a smaller number of larger insurers
Slide 22: Insurance underwriting units: Casualty, Property, Financial Lines
© 2018, XL Group Ltd. All rights reserved. 22 UW Unit Distinctive Advantage Casualty One of the leading franchise in Global Programs Broad commercial client profile ranging from Small Medium Enterprises with a minimum turnover of USD 10 million up to Top 100 companies Property Highly diversified por
Slide 23: Reinsurance: Global reach, local touch
© 2018, XL Group Ltd. All rights reserved. Reinsurance Global reach, local touch 23 Organized around the primary reinsurance centers, all our regions have market leading capabilities supported by cutting-edge management information tools Resilient and diverse portfolio built around strong relationsh
Slide 24: Strong Brand and client satisfaction
© 2018, XL Group Ltd. All rights reserved. Strong Brand Highest client satisfaction Re/insurance Company of the Year – European and UK Captive Awards 2017 Captive Fronting Partner & Customer Care Award – UK Captive Services Awards 2017 US Captive Services Award for Re/insurance Award – US Captive Aw
Slide 25: Claims service and reputation
© 2018, XL Group Ltd. All rights reserved. Uncompromising, high levels of service no matter where you work with us or across which products highly experienced, locally empowered professionals Delivered by a team of Strong Brand and Reputation for paying claims quickly and fairly 25 Strong Brand and
Slide 26: Relevance and Global Distribution Network
© 2018, XL Group Ltd. All rights reserved. Marsh 17% Aon 14% Willis Towers Watson 10% JLT 4% Arthur J Gallagher & Co 4% Lockton 4% All Other 47% 26 Portfolio reliance on top 3 brokers is stable, but reduced since 2014… Top 3 42% Relevance with brokers partners Access to global business through netwo
Slide 27: Global Programs for multinational coverage
© 2018, XL Group Ltd. All rights reserved. XL Catlin’s answer to multinational coverage 27 One of the largest providers in the world Over $1.0 billion in Global Program premiums written in 2017 Lead ~2500 Global Programs, encompassing over 20,000 policies globally. Recognized as a market leader in t
Slide 28: Recognized Leader in Innovation
© 2018, XL Group Ltd. All rights reserved. Recognized Leader in Innovation Examples of execution: Partner of Blockchain Insurance Industry Initiative (B3i) based in Zurich Partner with UK based Oxbotica, autonomous vehicle software company 28 Constructive A cultural mind set instilled across the ent
Slide 29: Alternative capital strategy
© 2018, XL Group Ltd. All rights reserved. Continuing to build on our multi-faceted alternative capital strategy to leverage our risk origination position 29 Integrated Underwriting Capital Management team overseeing all underwriting risk transfer effort - blending the best combination of reinsuranc
Slide 30: Operating Highlights - Expanding P&C Margins
© 2018, XL Group Ltd. All rights reserved. 98.5% 93.7% 92.0% 90.6% 93.1% 90.7% 90.2% 85.0% 87.5% 90.0% 92.5% 95.0% 97.5% 100.0% 102.5% 105.0% 2011 2012 2013 2014 2015 2016 2017 30.9% 31.0% 30.5% 31.2% 33.6% 32.0% 30.8% 29.0% 30.0% 31.0% 32.0% 33.0% 34.0% 35.0% 2011 2012 2013 2014 2015 2016 2017 6.9
Slide 31: Operating Highlights - Strong Balance Sheet
© 2018, XL Group Ltd. All rights reserved. 12.6 6.4 12.1 6.1 - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Avail. Capital Q4-16 ECR Q4-16 Est. Avail. Capital Q4-17 Est. ECR Q4-17 213% 198% Internal Model / Regulatory Significant capital buffer allowed us to absorb net catastrophe losses in 2017 All capital instr
Slide 32: Operating Highlights - Investments
© 2018, XL Group Ltd. All rights reserved. Operating Highlights - Investments1 High quality and well diversified investment portfolio with the principal objective to support (re)insurance operations while maximizing risk adjusted return on capital 32 1 All figures based on U.S. GAAP and excluding th
Slide 35: Coupon Interest Expenses and Preference Shares Dividends schedule
© 2018, XL Group Ltd. All rights reserved. Coupon Interest Expenses1 and Preference Shares Dividends schedule 35 Income Statement view2 USD million Amounts may not add up due to rounding 1 Coupon expense excludes the impact of discount accretion and amortization of issuance costs associated with the
Slide 36: Details of Life Retrocession Arrangements
© 2018, XL Group Ltd. All rights reserved. Details of Life Retrocession Arrangements XL does not bear underwriting or investment risk 36 Impact on Income Statement is offset by the same item with opposite sign within Other Comprehensive Income (“OCI”) resulting in a neutral effect on our Balance She
Slide 37: Disclosure related to Probable Maximum Loss estimation
© 2018, XL Group Ltd. All rights reserved. Disclosure related to the estimation of Probable Maximum Loss (“PML”) 37 PML includes secondary uncertainty that incorporates variability around the expected probable maximum loss for each event, do not represent our maximum potential exposures and are pre-
Slide 38: Glossary
© 2018, XL Group Ltd. All rights reserved. Glossary 38 AY Accident Year NII + Aff. Income Net Investment Income plus Affiliate Income AOCI Accumulated Other Comprehensive Income Non-op tax adj Non Operating Tax Adjustment AY UW Income ex-Cats Accident Year Underwriting Income excluding the impact of
Slide 39: Reconciliation of Book Value Per Share to Tangible Book Value Per Share
© 2018, XL Group Ltd. All rights reserved. Reconciliation of Book Value Per Share to Tangible Book Value Per Share 39 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (U.S. dollars in thousands, except share and per share amounts) Three Months Ended Twelve Months Ended Nine Months Ended Six Months Ende
Slide 40: Reconciliation of Operating Net Income to Net Income and ROE Measures
© 2018, XL Group Ltd. All rights reserved. Reconciliation of Operating Net Income to Net Income and Calculation of Related ROE Measures 1 See glossary 40 The following is a reconciliation of XL’s net income (loss) attributable to common shareholders to operating net income (loss) and also includes t
Slide 41: Reconciliation of Operating Net Income to Net Income (continued)
© 2018, XL Group Ltd. All rights reserved. Reconciliation of Operating Net Income to Net Income and Calculation of Related ROE Measures (continued) 41 1 Diluted weighted average number of common shares outstanding is used to calculate per share data except when it is anti-dilutive to earnings per sh
Slide 42: Comment on Regulation G
© 2018, XL Group Ltd. All rights reserved. Comment on Regulation G 42 XL presents its operations in ways it believes will be most meaningful and useful to investors, analysts, rating agencies and others who use XL’s financial information in evaluating XL’s performance. This document contains the pre
Slide 43: Comment on Regulation G (continued)
© 2018, XL Group Ltd. All rights reserved. Comment on Regulation G 43 (continued from previous page) The returns on the Life Funds Withheld Assets are passed directly to the reinsurer pursuant to a contractual arrangement that is accounted for as a derivative. Therefore, net investment income from t

XL Group — Q1 2018 Earnings Presentation on 6ix

Xl Holdings Bhd — Q1 2018 Earnings Presentation

Slide 1: XL Group Ltd Q1 2018 Results and Overview

Slide 2: Cautionary Note Regarding Forward-Looking Statements

Slide 3: Q1 2018 Results

Slide 4: Q1 2018 Highlights

Slide 5: Earnings and ROE

Slide 6: Net Income and Operating Earnings

Slide 7: Trends in Net Income, Operating Earnings and ROE

Slide 8: Underwriting - Insurance

Slide 9: Underwriting - Reinsurance

Slide 10: Catastrophe Risk Management

Slide 11: Investments

Slide 12: Continuous Improvement: Operating Expenses

Slide 13: Overview of XL

Slide 14: Global P&C re/insurance provider specialized in commercial risks

Slide 15: A leader in commercial lines with strong distribution in specialty markets

Slide 16: Risk origination power from combination of Insurance and Reinsurance

Slide 17: Complete and diversified global set-up

Slide 18: Our P&C Operating Model

Slide 19: Portfolio Diversification

Slide 20: Global Lines Insurance product mix

Slide 21: Insurance underwriting units: Professional, Construction, Casualty

Slide 22: Insurance underwriting units: Casualty, Property, Financial Lines

Slide 23: Reinsurance: Global reach, local touch

Slide 24: Strong Brand and client satisfaction

Slide 25: Claims service and reputation

Slide 26: Relevance and Global Distribution Network

Slide 27: Global Programs for multinational coverage

Slide 28: Recognized Leader in Innovation

Slide 29: Alternative capital strategy

Slide 30: Operating Highlights - Expanding P&C Margins

Slide 31: Operating Highlights - Strong Balance Sheet

Slide 32: Operating Highlights - Investments

Slide 33: © 2018, XL Group Ltd. All rights reserved. 33

Slide 34: Appendix

Slide 35: Coupon Interest Expenses and Preference Shares Dividends schedule

Slide 36: Details of Life Retrocession Arrangements

Slide 37: Disclosure related to Probable Maximum Loss estimation

Slide 38: Glossary

Slide 39: Reconciliation of Book Value Per Share to Tangible Book Value Per Share

Slide 40: Reconciliation of Operating Net Income to Net Income and ROE Measures

Slide 41: Reconciliation of Operating Net Income to Net Income (continued)

Slide 42: Comment on Regulation G

Slide 43: Comment on Regulation G (continued)