Profile: XL Group Ltd (XL.N)
8 Dec 2017
XL Group Ltd, through its subsidiaries, is an insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises. The Company operates through two segments: Insurance and Reinsurance. As of December 31, 2016, the Company served clients in more than 200 countries across the world, through its global network of locally licensed and Lloyd's of London Syndicates (Lloyd's) operations, and network partners managed from its three network partner management hubs in Austria, Hong Kong and Mexico. Its Asia Pacific region operates with a mix of locally licensed and Lloyd's operations. The Company has underwriting operations in Hong Kong; Labuan, Malaysia; Melbourne, Australia; Shanghai, China; Singapore; and Sydney, Australia. Its Americas region operates across Bermuda, Canada, Latin America and the United States. It serves clients in the Europe, the Middle East and Africa (EMEA) region. The United Kingdom & Ireland region operates out of six locations: Birmingham, Chelmsford, Dublin, Guernsey, London and Manchester.
The Company's insurance operations include four business groups: Global Casualty, Global Energy, Property & Construction, Global Professional and Global Specialty, as well as four regions: Americas; Europe, Middle East & Africa (EMEA); the United Kingdom & Ireland, and Asia Pacific. The insurance operations provide customized insurance policies for corporate risks that may require large limits, use of a captive insurance company and the need for a global program with locally issued policies. These policies and programs are marketed and distributed through a range of local, national and international producers.
The Company's Global Casualty provides primary and excess casualty, environmental liability, excess and surplus lines, the United States program/facilities and North American construction business. The division writes business on a wholesale basis through its Lloyd's platform and the excess & surplus market in the United States, and on a retail basis through its global retail network. Casualty products provide large capacity on a primary or excess of loss basis. Global insurance programs are targeted to multinational companies in industry groups, including automotive, consumer products, pharmaceutical, pulp and paper, high technology, telecommunications, transportation and basic metals.
The Company's environmental liability products include pollution and remediation legal liability, general and project-specific pollution and professional liability, and commercial general property redevelopment and contractor's pollution liability. Business is written for both single and multiple years on a primary or excess of loss, claims-made or, less frequently and on occurrence basis. Targeted industries include environmental service firms, contractors, healthcare facilities, manufacturing facilities, real estate development, transportation and construction. Its excess and surplus lines products include general liability, property, excess auto and excess liability coverages where Insurance Services Office, Inc. (ISO) products are written.
The Company's United States program/facilities business specializes in insurance coverages for various market segments, including program administrators and managing general agents operating in a specialized market niche and has industry backgrounds or specialized underwriting capabilities. North America 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 owners, excess umbrella, subcontractor default insurance, and primary casualty wrap ups.
The Company's Global Energy, Property and Construction (EPC) products and services include control of well; drilling contractors; energy casualty; offshore construction projects, and offshore and onshore energy property/business interruption. The property team relies on technical underwriting, combined with wordings and claims expertise to offer customized cover to suit client needs. Through its Property Risk Engineering/Global Asset Protection Services (GAPS) unit, the property team offers risk assessment and consultancy services to build a risk management strategy for its clients. GAPS' risk profile includes a range of real estate, commercial and industrial properties. Its products and services include commercial combined packages, general property, business interruption, and boiler and machinery. Its international construction team has underwriters in cities across Europe, the Americas and Asia Pacific. The team offers a range of construction-related products, as well as risk engineering services. Its products and services include loss of profits/delay in start-up; annual facilities for employers and contractors; commercial project builders insurance; construction/contractors all risks, and engineering/erection all risks and machinery breakdown.
The Company's Global Professional Lines (Professional) provides a range of professional Liability products to professional services firms and public and private companies. Professional includes directors' and officers' liability, errors and omissions liability, employment practices liability, crime, fiduciary and technology and cyber liability coverages. Policies are written on both a primary and excess of loss basis. Its Global Specialty Lines (Specialty) includes various lines of business, such as aviation & satellite, marine (including North America inland marine), fine art & specie, equine, livestock & aquaculture, crisis management (product recall, political violence, kidnap & ransom, contingency, sport & leisure, title), political risk, trade credit and life, accident & health.
Aviation and satellite products include airline hull and liability, airport liability, aviation manufacturers' product liability, aviation ground handler liability, large 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. The target markets for aviation and satellite products include airlines, aviation product manufacturers, aircraft service firms, general aviation operators and telecommunications firms. Marine coverage includes marine hull and machinery, marine war, marine primary/excess liability and cargo insurance. Fine art and specie coverages include fine art and other collections, jewelers' block, cash in transit and related coverages for financial institutions. Equine, livestock & aquaculture products specialize in providing bloodstock, livestock and aquaculture insurance. Political risk and trade credit coverages include contract frustration, foreign direct investment, trade credit and trade receivable insurance for clients involved in domestic and international business. Life, accident & health business provide life and accident & health coverages.
The Company's reinsurance operations are structured into five geographical regions: Bermuda; North America; London; EMEA; and Latin America, Asia Pacific & Credit (LAC). This segment provides casualty, property risk, property catastrophe, specialty, and other reinsurance lines on a global basis with business being written on both a proportional and non-proportional treaty basis, and also on a facultative basis. Its casualty reinsurance includes general liability, professional liability, automobile liability and workers' compensation. Professional liability includes directors' and officers', errors and omissions, employment practices, medical malpractice and environmental liability. Casualty lines are written as treaties or programs, and on both a proportional and a non-proportional basis. The treaty business includes clash programs, which cover losses under a number of underlying policies involved in one occurrence or a judgment above an underlying policy's limit.
The Company's property business is written on both a portfolio/treaty and individual/facultative basis, and includes property catastrophe, property risk excess of loss and property proportional. The underwritten property business consists of aggregate exposures to man-made and natural disasters and, generally, loss experience is characterized as low frequency and high severity. 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, or multiple occurrences in the case of aggregate covers, exceed the attachment point specified in the policy. Specialty reinsurance products include energy, marine, aviation and space. Other reinsurance products include fidelity, surety, trade credit, accident and health, mortgage and political risk. In addition, it writes several whole account capital gearing quota share contracts on select syndicates at Lloyd's.
The Company competes with Allianz SE, American International Group, Inc., Factory Mutual Global, The Hartford Financial Services Group, Inc., Lloyd's of London Syndicates, Chubb Limited, The Travelers Companies, Zurich Insurance Group Ltd, AXIS Capital Holdings Ltd, Arch Capital Group Ltd, Endurance Specialty Insurance Ltd, PartnerRe Ltd, RenaissanceRe Holdings Ltd, Validus Holdings Ltd, Nephila Capital Limited, Alleghany Corporation, Berkshire Hathaway Inc., Everest Re Group Ltd, Hannover Re SE, Munich Re AG, Swiss Re AG, SCOR SE, W.R. Berkley Corporation, Markel Corporation, AXA Insurance Ltd, Assicurazioni Generali, HDI-Gerling Industrie Versicherung AG, MAPFRE S.A, Allied World Assurance Company, Transatlantic Re, Aspen Insurance Holdings Ltd, Korean Reinsurance Company and R+V Versicherung AG.
XL Group Ltd
O'Hara House, One Bermudiana Roa
HAMILTON HM 08