Xl Holdings Bhd · MYX:XL
Xl Holdings Bhd — Morgan Stanley US Financials Conference 2012
14 slides from Xl Holdings Bhd's conference presentation, Jun 13, 2012
Slide 1: XL Group plc - Morgan Stanley US Financials Conference
Exhibit 99.1 XL GROUP PLC MORGAN STANLEY US FINANCIALS CONFERENCE Peter Porrino Chief Financial Officer June 13, 2012 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements. Statements that are not historical facts, including statements about XL’s beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates
Slide 3: Today's Topics
Today’s Topics Financial highlights Commitment to margin expansion Global Loss Triangles and prudent reserving Mitigation of European uncertainty Q&A 3
Slide 4: Financial Highlights
Financial Highlights For the three months ended March 31, 2012 $MM, except per share data Unaudited (5) (6) Q1 2012 Q1 2011 Change P&C Operations: Gross Premiums Written $2,317 $2,099 10.4% Net Premiums Written $1,963 $1,714 14.5% Net Premiums Earned $1,358 $1,272 6.8% Loss Ratio 62.9% 95.1% (32.2)
Slide 5: Margin Expansion
Margin Expansion 77% 950 Insurance loss ratio 76% trend (ex CAT and 930 PYD) has shown 75% improvement over 910 74% past 5 quarters 73% 890 72% 870 71% 70% 850 69% 830 68% 67% 810 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Loss ratio NPE Loss ratio = left scale Net premiums Earned (US$ MM) = right scal
Slide 6: Prudent Reserving Policy Remains an XL Cornerstone
Prudent Reserving Policy Remains an XL Cornerstone Redundancy estimates by industry analysts 30% Analyst comparison versus peers that have published 25% global loss triangles for 2010 or 2011 Positive year-over-year 20% trend for XL Flat or up slightly for most 15% others Down for one 10% 5% Bubble
Slide 7: Mitigating Eurozone Exposures
Mitigating Eurozone Exposures A review of the likely currency of settlement in the event of a full Euro break-up shows that XL is overweight a number of core countries (i.e. Netherlands and Germany), underweight a number of peripheral countries (i.e. Ireland, Spain and Italy) and broadly flat the ot
Slide 8: Exposure by Continental European Country of Risk
Exposure by Continental European Country of Risk (US Dollar equivalent, $MM) (As of May 31, 2012) Governments Corp Non-Financials Corp Financials Structured Credit (5) Aggregate Europe (6) Country Net Unrealized Net Unrealized Net Unrealized Net Unrealized Net Unrealized of Risk (1) Gain/(Loss) Gain
Slide 9: XL Policies to Manage Investment Risk in Continental Europe
XL Policies to Manage Investment Risk in Continental Europe Investment portfolio positioned defensively vis-à-vis Continental Europe Underweight corporate exposure, particularly banks Most bank exposure is to national champions in northern Europe Exposure to peripheral corporates is modest $4MM fina
Slide 10: Conclusions
Conclusions Continue margin expansion Grow premium in disciplined manner Continue prudent reserving policies Maintain matched European asset and liability profiles 10
Slide 11: Q&A
Q&A L © O12, XL Group ple cmparies. I ight resened. MAKE YOUR WORLD GO 11
Slide 12: Reconciliation
Reconciliation For the three Months ended March 31, 2012 $MM, except per share data Unaudited The following is a reconciliation of the Company’s net income (loss) attributable to ordinary shareholders to operating net income (loss) (Note 1) and also includes the calculation of annualized return on o
Slide 13: Footnotes
Footnotes 1 Defined as net income (loss) attributable to ordinary shareholders excluding (1) net realized gains and losses on investments, net of tax for XL, (2) net realized and unrealized gains and losses on derivatives, net of tax, for XL, (3) its share of items (1) and (2) for the Company’s insu
Slide 14: Comment on Regulation G
Comment on Regulation G XL presents its operations in the way 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 presentation contains the presentation of (i) operating net income (
XL Group — Morgan Stanley US Financials Conference 2012 on 6ix