Xl Holdings Bhd · MYX:XL
Xl Holdings Bhd — Merger or Acquisition (May 2014)
8 slides from Xl Holdings Bhd's merger presentation, May 1, 2014
Slide 1: Sale & Retrocession of Life Reinsurance Business
XL Group plc Sale & Retrocession of Life Reinsurance Business May 1, 2014
Slide 2: Transaction Rationale
Transaction Rationale Xe Strategic Focus & Benefit Reduce Non-Core Euro-Zone Exposure Financial Flexibility Timing Exit substantial portion of non-core activities, thereby increasing focus on core property & casualty business « As P&C operations continue to improve, transaction helps our ROE and cou
Slide 3: Summary
xt Summary XL Group plc (“XL”) announced today that XL Insurance (Bermuda) Ltd has entered into a definitive agreement to sell its wholly-owned subsidiary, XL Life Reinsurance (SAC) Ltd (“XLLR”), to GreyCastle Holdings Ltd. (“GreyCastle”) for $570 million in cash GreyCastle is a newly-formed Bermuda
Slide 4: Business Profile
Business Profile Xe Reserves included in transaction $4.4 billion of U.S. GAAP Reserves at March 31, 2014 UK and Covers substantially all of ee in life isiness, Europea Life Reinauranes U.S. GAAP Reserves At March 31, 2014 (Unaudited) inoatig: Single Premium Annuity Regular Premium Annuity UK / Euro
Slide 5: Transaction Structure
Transaction Structure Xe * Sale of 100% of shares of XLLR to GreyCastle Prior to completion of the transaction, specified life reinsurance business written by XL Re Ltd, the UK Branch of XL Re Ltd and XL Re Europe SE will be retroceded into XLLR. and included in the sale Under the terms of the trans
Slide 6: Certain Future Accounting Implications
Certain Future Accounting Implications xX * The transaction will involve retrocession arrangements (“Retro”), which are on a funds withheld basis. + The obligations assumed by XLLR under the Retro will be collateralized by invested assets that will continue to be legally owned by XL. + These investe
Slide 7: Appendix: Indicative Financial Model
L The unaudited pro forma consolidated financial data presented in this Indicative Financial Model has been prepared for illustrative purposes only and Appendix: Indicative Financial Model ended March 31, 2014 or any future dates. 1.2014 Actual Tife fe Operations- Operations- Life P&C and Feinmuranc
Slide 8: Juding, without limitati “Transactions’)
L Juding, without limitati “Transactions’) ‘completion of the Transactions, (3) the ability of XL ti i pect,” ‘wil’, “estimate” tp 10K, inethe ‘Comment on Regulation G CL lyst oft derivat oft tof tax and net of fax. ling process. In addit losses il i In this regard, cert f XL" Furtherm panies, deriv