Profile: XL Group PLC (XL.N)
22 May 2015
XL Group plc, incorporated on March 12, 2010, through its subsidiaries, is a global insurance and reinsurance company engaged in providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises on a worldwide basis. The Company is organized into three operating segments: Insurance, Reinsurance and Life operations. The insurance operations market and distribute coverage through a variety of local, national and international producers and provide insurance policies for complex corporate risks that may require large limits. Reinsurance segment provides casualty, property risk, property catastrophe, marine, aviation, treaty and other specialty reinsurance on a global basis with business being written on both a proportional and non-proportional basis and also on a facultative basis. In February 2014, XL Group plc acquired Global Ag Insurance Services. In June 2014, the Company sold XL Life Reinsurance (SAC) Ltd to GreyCastle Holdings Ltd.
The Company's insurance operations are organized into four business groups: International Property and Casualty, North America Property and Casualty, Global Professional Lines and Global Specialty Lines. Its insurance operations provide customized insurance policies for complex corporate risks that may require limits and are marketed and distributed through a wide variety of local, national and international producers.
International Property and Casualty (IPC) includes property, primary and excess casualty and environmental liability. Property and casualty products are typically written as global insurance programs for medium sized multinational companies and institutions and include property and liability coverages. Property and casualty products generally provide capacity on a primary, quota share or excess of loss basis. Global insurance programs are targeted to multinational companies in industry groups including aerospace, automotive, consumer products, pharmaceutical, pulp and paper, high technology, telecommunications, transportation and basic metals. The primary casualty programs generally require customers to take deductibles or self-insured retentions. For the excess business, its liability attaches after deductibles, including self insurance or insurance layers provided by other companies. Policies are written on an occurrence, claims-made and occurrence reported basis. Its property business, which also includes construction projects, is short-tail by nature and written on both a primary and excess of loss basis. Property business includes exposures to man-made and natural disasters, and generally, loss experience is characterized as low frequency and high severity.
North America Property and Casualty (NAPC) includes property, primary and excess casualty, environmental liability, excess and surplus lines, construction, surety and program business. In addition to the property, casualty and environmental products described under IPC, the NAPC business unit also includes 100% property products for the account risk engineered markets and general liability, U.S. workers’ compensation and auto liability for the risk management accounts, which require customers to take deductibles or self-insured retentions. Construction products include property coverages (builders risk, contractors equipment, property and inland marine), general liability, United States workers compensation and commercial auto, as well as professional liability for contractors and owner, excess umbrella, subcontractor default insurance and primary casualty wrap ups. Surety products include contract bonds, including bid, performance, payment and contractor qualification bonds, as well as commercial surety bonds, including appeal, court and qualification bonds. Products in general provide a sole surety, co-surety or shared surety basis. Its program business specializes in insurance coverages for distinct market segments in North America, including program administrators and managing general agents who operate in a specialized market niche and have industry backgrounds or specialized underwriting capabilities. Products encompass mostly property and casualty coverages.
Global Professional Lines (Professional) includes directors’ and officers’ liability, errors and omissions liability, employment practices liability and technology and cyber liability coverages. Policies are written on both a primary and excess of loss basis. Errors and omissions coverage is written on a primary and excess basis. Errors and omissions insurance written on a primary basis is targeted to small and medium-sized firms and coverage is provided for various professional exposures, including, but not limited to, architects and engineers, insurance brokers, consultants, lawyers, public entities and real estate agents.
Global Specialty Lines (Specialty) includes lines of business: aviation and satellite, marine and offshore energy, fine art and specie, equine, product recall, political risk and trade credit and North America inland marine. Aviation and satellite products include comprehensive airline hull and liability, airport liability, aviation manufacturers’ product liability, aviation ground handler liability, aircraft hull and liability, corporate non-owned aircraft liability, space third party liability and satellite risk including damage or malfunction during ascent to orbit and continual operation, and aviation war. Marine and offshore energy coverage includes marine hull and machinery, marine war, marine excess liability, cargo and offshore energy insurance. Fine art and specie coverages include fine art and other collections, jewelers block, cash in transit and related coverages for financial institutions. Equine products specialize in providing bloodstock and livestock insurance. Product recall coverages include product contamination for the food and beverage sector and end-product consumer goods and product guarantee aimed at component part manufacturers.
The Company competes with AIG, ACE, Chubb, FMG, Zurich, Travelers, CNA Financial Corporation, Hartford, Liberty Mutual Group, Arch Capital Group Ltd (Arch), W.R. Berkley Corporation, Markel Corporation, Lloyd’s, Allianz, Zurich, AXA Insurance Ltd. (AXA), Assicurazioni Generali, HDI-Gerling Industrie Versicherung AG, MAPFRE S.A, Allied World Assurance Company, Axis Capital Group, Alterra Capital and Endurance Specialty Insurance Ltd.
Reinsurance segment is structured geographically into Bermuda operations, North American operations, European/Asia Pacific operations and Latin American operations. This segment provides casualty, property risk, property catastrophe, marine, aviation, treaty and other specialty reinsurance on a global basis with business being written on both a proportional and non-proportional basis and also on a facultative basis. Its casualty reinsurance includes general liability, professional liability, automobile and workers’ compensation. Its property business, primarily short-tail in nature, is written on both a portfolio/treaty and individual/facultative basis and includes property catastrophe, property risk excess of loss and property proportional. Property catastrophe reinsurance provides coverage on an excess of loss basis when aggregate losses and loss adjustment expenses from a single occurrence of a covered event exceed the attachment point specified in the policy. Other specialty reinsurance products include energy, marine, aviation, space, engineering, fidelity, surety, trade credit and political risk.
The Company competes with ACE Tempest Reinsurance Ltd, AXIS Specialty Limited, Arch Reinsurance Limited, Renaissance Reinsurance Limited, Montpelier Reinsurance Ltd, Platinum Underwriters Bermuda Ltd, PartnerRe Ltd ,Validus Reinsurance Ltd, Berkshire Hathaway Inc., Munich Re Group (Munich Re), Swiss Reinsurance America Corporation (Swiss Re), Alleghany Corporation, Everest Re Group Ltd, Hannover Re Group (Hannover Re), Swiss Re, Lloyd’s, SCOR Reinsurance Company, Mapfre Re and IRB-Brazil Re.
Life Operations Segment
The Life operations segment provided life reinsurance on business written by life insurance companies, principally to help them manage mortality, morbidity, survivorship, investment and lapse risks. The portfolio includes a small number of contracts relating to closed blocks of U.K. and Irish fixed annuities in payment. These contracts are long-term in nature, and the expected claims payout period can span up to 30 or 40 years. The second component of the portfolio relates to life risks (in the United States and United Kingdom and Ireland)), income protection risks and critical illness riskswhere it is exposed to the mortality, morbidity and lapse experience from the underlying business, over the medium to long-term. The third component relates to the annually renewable business covering life, accident and health risks written in Continental Europe. These contracts are short-term in nature and include both proportional and non-proportional reinsurance structures. While the renewal rights for this business have been sold, the existing business remains with them.
The Company competes with Canada Life and Prudential (U.K.), Swiss Re, Partner Re Ltd., Scor Global Life and Pacific Life Re.
XL Group PLC
8 ST. STEPHEN'S GREEN, DUBLIN 2