The following excerpt is from the company's SEC filing.

(203) 964-3470                    (203) 674-6932

XL Group plc Announces

Third Quarter 2015

Results

Operating net income

$70.8 million

per share, for the quarter on a fully diluted basis

Net income attributable to ordinary shareholders and net income attributable to ordinary shareholders excluding the impact of the Life Retrocession Arrangements

$27.3 million

$46.6 million

, respectively, for the quarter.

Losses net of reinsurance and reinstatement premiums related to the mid-August 2015 Tianjin, China port explosion totaled $95.7 mill ion

Integration costs related to the combination with Catlin Group Limited ("Catlin") totaled

$55.2 million

in the quarter

P&C combined ratio of

for the quarter, compared to

in the prior year quarter

Natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums in the quarter of

$30.8 million

$29.8 million

Earnings from operating and investment fund affiliates were

$4.5 million

$44.5 million

in the prior year quarter, due primarily to equity market volatility on the hedge fund portfolio

Annualized operating return on average ordinary shareholders' equity

excluding and including average unrealized gains and losses on investments was

, respectively, for the year to date

Fully diluted tangible book value per ordinary share

$31.95

September 30, 2015

, a decrease of

, from

June 30, 2015

EXHIBIT 99.1

_________________________

Defined as net income (loss) attributable to ordinary shareholders excluding: (1) our net investment income - Life Funds Withheld Assets (defined below), net of tax, (2) our net realized (gains) losses on investments sold - excluding Life Funds Withheld Assets, net of tax, (3) our net realized (gains) losses on investments sold (including OTTI) and net unrealized (gains) losses on investments, Trading - Life Funds Withheld Assets, (4) our net realized and unrealized (gains) losses on derivatives, net of tax, (5) our net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets, (6) our share of items (2) and (4) for XL Group plc ("XL")'s insurance company affiliates for the periods presented, (7) our foreign exchange (gains) losses, net of tax, (8) our expenses related to the Catlin acquisition, net of tax, (9) our gain on the sale of our interest in our former operating affiliate, ARX Holding Corp. ("ARX"), and (10) our loss on sale of life reinsurance subsidiary, XL Life Reinsurance (SAC) Ltd ("XLLR"),, net of tax “Operating net income”, “annualized operating return on average ordinary shareholders' equity" and "annualized operating return on average ordinary shareholders' equity excluding average unrealized gains and losses on investments" are non-GAAP financial measures. See the schedule entitled “Reconciliation” on page 9 of this press release for a reconciliation of “operating net income” to net income (loss) attributable to ordinary shareholders and the calculation of “annualized operating return on average ordinary shareholders' equity" and "annualized operating return on average ordinary shareholders' equity excluding average unrealized gains and losses on investments", both of which are based on operating net income.

On May 1, 2014, our wholly-owned subsidiary, XL Insurance (Bermuda) Ltd (“XLIB”), entered into a sale and purchase agreement with GreyCastle Holdings Ltd. (“GreyCastle”) providing for the sale of 100% of the common shares of XLIB's wholly-owned subsidiary, XLLR, for $570 million in cash. This transaction was completed on May 30, 2014. As a result of the transaction, we have ceded the majority of our life reinsurance business to XLLR via 100% quota share reinsurance (the "Life Retrocession Arrangements"). The designated investments that support the Life Retrocession Arrangements, which are written on a funds withheld basis ("Life Funds Withheld Assets"), are included within "Total investments available for sale" and "Fixed maturities, trading at fair value" on our balance sheet. Investment results for these assets - including interest income, unrealized gains and losses, and gains and losses from sales - are passed directly to the reinsurer pursuant to a contractual arrangement that is accounted for as a derivative. Changes in the fair value of the embedded derivative associated with these Life Retrocession Arrangements are grouped within "Contribution from Life Retrocession Arrangements" in the schedule entitled "Reconciliation" on page 8 of this press release. Net income attributable to ordinary shareholders excluding the impact of the Life Retrocession Arrangements is a non-GAAP financial measure.

Ordinary shareholders' equity is defined as total shareholders' equity less non-controlling interest in equity of consolidated subsidiaries.

Book value per ordinary share, fully diluted book value per ordinary share and fully diluted tangible book value per ordinary share are non-GAAP financial measures. Fully diluted book value per ordinary share represents book value per ordinary share (total shareholders' equity less non-controlling interest in equity of consolidated subsidiaries, divided by the number of outstanding ordinary shares at any period end) combined with the dilutive impact of potential future share issuances at any period end. Fully diluted tangible book value per ordinary share is calculated in the same manner as fully diluted book value per ordinary share except that goodwill and intangible assets are excluded from ordinary shareholders' equity. XL believes that fully diluted tangible book value per ordinary share is a financial measure important to investors and other interested parties who benefit from having a consistent basis for comparison with other companies within the industry. However, this measure may not be comparable to similarly titled measures used by companies either outside or inside of the insurance industry.

Dublin, Ireland –

October 26, 2015

plc (“XL” or the “Company”) (NYSE: XL) today reported its

third quarter

results.

Commenting on the Company’s performance, Chief Executive Officer Mike McGavick said:

“In its first full quarter of combined operations, XL Catlin produced solid results including a 95.3% combined ratio, gross written premiums of $2.7 billion and a P & C underwriting profit of $114.1 million. At the same time, our bottom-line results in the quarter were particularly impacted by market events and ongoing expenses related to our integration. Our colleagues’ effort to move quickly through our integration continues to be recognized by positive reaction from clients and brokers and the new opportunities we are seeing. We have absolute confidence in the fundamentals of the new company we are building and remain focused on creating value by becoming the most innovative and admired (re)insurance company in our industry and feel we are well on our way."

Highlights

Three and Nine Months Ended September 30

(U.S. dollars in thousands, except per share amounts)

Three Months Ended

September 30,

(Unaudited)

(Unaudited) (Note 1)

Operating net income (loss)

70,792

187,088

510,965

705,314

Per ordinary share-fully diluted

Net income (loss) attributable to ordinary shareholders

27,282

72,384

978,602

48,841

Note 1: The Company's results for the nine months ended September 30, 2015 include those of Catlin from May 1, 2015.

Operating net income of

for the quarter decreased compared to operating net income of

$187.1 million

in the prior year quarter. The current quarter includes approximately

in integration costs as well as

in natural catastrophe losses compared to

in natural catastrophe losses in the prior year quarter.

Net income (loss) attributable to ordinary shareholders of

for the quarter decreased compared to a

$72.4 million

Net investment income for the quarter was

$225.1 million

$226.4 million

in the prior year quarter and

$223.2 million

in the second quarter of 2015.

Net income from investment fund and investment manager affiliates was $2.2 million for the quarter, compared to net income of $40.4 million in the prior year quarter. The decrease was driven primarily by the impact of market volatility on our Investment Fund Affiliates with a number of event driven and emerging markets focused funds.

Fully diluted tangible book value per ordinary share decreased by

from the prior quarter to

, driven by the increase in our unrealized losses on investments and our payment of dividends, partially offset by net income.

Share buybacks totaled 4.8 million ordinary shares for $180.0 million during the quarter. At

$880.0 million

of ordinary shares remained available for purchase under our share buyback program.

P&C Operations

(U.S. dollars in thousands)

Gross premiums written

2,659,142

1,600,702

8,141,243

6,140,870

Net premiums written

2,073,216

1,214,246

6,010,032

4,567,112

Net premiums earned

2,405,740

1,453,673

5,789,029

4,304,277

Underwriting profit (loss)

114,118

144,375

469,733

457,196

Loss ratio

Underwriting expense ratio

Combined ratio

P&C gross premiums written (“GPW”) in the

increased

compared to the prior year quarter following the combination with Catlin.

The Insurance segment GPW increased

from the prior year quarter primarily due to the combination with Catlin.

Excluding the impacts of the additional Catlin business and foreign exchange,  the segment experienced an increase of 6.0%. Rates were under pressure in most lines. However, this was offset by new business, particularly in our International Financial Lines, Political Risk & Trade Credit and Cyber business lines. Renewals were reduced where premium rates did not support our target returns.

The Reinsurance segment GPW also increased

from the prior year quarter, primarily due to the combination with Catlin.

This was offset by lower renewals in North America due to a competitive pricing environment with respect to property and casualty treaty business. In addition, the prior year included favorable premium adjustments which did not repeat in the current year.  

P&C net premiums earned (“NPE”) in the

$2.4 billion

were comprised of

$1.6 billion

from the Insurance segment and

$772.8 million

from the Reinsurance segment.

The P&C loss ratio in the current quarter was

percentage points higher than in the prior year quarter. Included in the P&C loss ratio was favorable development of

$28.1 million

$35.1 million

in the prior year quarter. The P&C loss ratio variance was impacted by natural catastrophe pre-tax losses net of reinsurance and reinstatement premiums of

in the prior year quarter. Excluding prior year development and natural catastrophe losses the

higher than the prior year quarter, driven significantly by the Tianjin, China port explosion loss.

The P&C combined ratio excluding prior year development and the impact of natural catastrophe losses for the quarter was

for the prior year quarter. The Insurance segment combined ratio on this basis was

for the quarter compared to

for the prior year quarter, while the Reinsurance segment combined ratio on this basis was

for the prior year quarter, with the increases in both segments, driven by the Tianjin loss and the impact of a change in business mix from the combination with Catlin.

Excluding Catlin related transaction and integration costs, operating expenses were

higher than the prior year quarter primarily due to the impact of the combination with Catlin. However, overall run rate expenses for the quarter continue to be less than the combined operating expenses of XL and legacy Catlin in the prior year quarter, indicating that synergy savings are already being achieved. The operating expense ratio decreased

in the quarter, compared to

Further details of the results for the quarter may be found in the Company’s Financial Supplement,

which is dated

and is available on the Investor Relations section of XL's website.

A conference call to discuss the Company’s results will be held at 5:00 p.m. Eastern Time on

Monday, October 26, 2015

. The conference call can be accessed through a listen-only dial-in number or through a live webcast. To listen to the conference call, please dial (210) 795-0624 or (866) 617-1526: Passcode: “XL GLOBAL”. The webcast will be available at www.xlcatlin.com and will be archived on the website from approximately 9:00 p.m. Eastern Time on

, until approximately midnight Eastern Time on November 26, 2015. A telephone replay of the conference call will also be available beginning at approximately 9:00 p.m. Eastern Time on

November 26, 2015

, by dialing (203) 369-3734 or (888) 473-0148. The following password will be required: 5670.

About XL Group plc

XL Group plc (NYSE: XL), through its subsidiaries and under the "XL Catlin" brand, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. Clients look to XL Catlin for answers to their most complex risks and to help move their world forward. To learn more, visit www.xlcatlin.com.

This press release 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 and expectations, all of which involve risk and uncertainty. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “may,” "could," or "would" and similar statements of a future or forward-looking nature identify forward-looking statements. Actual results may differ materially from those included in such forward-looking statements and therefore you should not place undue reliance on them. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements includes (a) changes in the size of XL’s claims relating to natural or man-made catastrophe losses due to the preliminary nature of some reports and estimates of loss and damage to date, in particular those related to the Tianjin port explosion, Chilean earthquake and 2015 US Winter Storms; (b) trends in rates for property and casualty insurance and reinsurance; (c) the timely and full recoverability of reinsurance placed by XL with third parties, or other amounts due to XL; (d) changes in the projected amount of ceded reinsurance recoverables and the credit ratings and credit worthiness of reinsurers; (e) actual loss experience from insured or reinsured events and the timing of claims payments being faster or the receipt of reinsurance recoverables being slower than anticipated; (f) increased competition on the basis of pricing, capacity, coverage terms or other factors such as the increased inflow of third party capital into reinsurance markets, which could harm XL’s ability to maintain or increase its business volumes or profitability; (g) greater frequency or severity of claims and loss activity than XL’s underwriting, reserving or investment practices anticipate based on historical experience

or industry data; (h) the impact of changes in the global financial markets, such as the effects of inflation on XL's business, including on pricing and reserving, increased government involvement or intervention in the financial services industry and changes in interest rates, credit spreads, foreign currency exchange rates and future volatility in the world’s credit, financial and capital markets that adversely affect the performance and valuation of XL’s investments, future financing activities and access to such markets or general financial condition; (i) XL's ability to successfully implement its business strategy, including the integration of Catlin; (j) XL’s ability to successfully attract and raise additional third party capital for existing or new investment vehicles; (k) the potential impact on XL of government-mandated insurance coverage for acts of terrorism; (l) changes in ratings and rating agency policies or practices; (m) the potential for changes to methodologies, estimations and assumptions that underlie the valuation of XL’s financial instruments that could result in changes to investment valuations; (n) changes to XL’s assessment as to whether it is more likely than not that it will be required to sell, or has the intent to sell, available-for-sale debt securities before their anticipated recovery; (o) the availability of borrowings and letters of credit under credit facilities; (p) the ability of XL’s subsidiaries to pay dividends to XL Group plc and XLIT Ltd.; (q) the potential effect of legislative or regulatory developments in the jurisdictions in which XL operates, such as those that could impact the financial markets or increase XL’s business costs and required capital levels, including but not limited to changes in regulatory capital balances that must be maintained by our operating subsidiaries and governmental actions for the purpose of stabilizing the financial markets; (r) the effects of business disruption, economic contraction or economic sanctions due to global political and social conditions such as war, terrorism or other hostilities, or pandemics; (s) changes in regulators or laws applicable to us or our subsidiaries, brokers or customers; (t) the actual amount of new and renewal business and acceptance of XL's products and services, including new products and services and the materialization of risks related to such products and services; (u) changes in the availability, cost or quality of reinsurance; (v) changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers; (w) the loss of key personnel and changes in accounting standards, policies or practices or the application thereof; (x) changes in applicable tax laws, tax treaties or tax regulations or the interpretation or enforcement thereof; (y) the effects of mergers, acquisitions and divestitures, including XL's ability to modify its internal controls over financial reporting, changes to its risk appetite and its ability realize the value or benefits expected, in each case, as a result of such transactions, including the Life Retrocession Arrangements and XL's recent acquisition of Catlin; (z) changes in general economic conditions, including new or continued sovereign debt concerns in Euro-Zone countries or downgrades of US securities by credit rating agencies, which could affect XL’s financial condition, results of operations, liquidity or cash flows; (aa) developments related to bankruptcies or other financial concerns of companies insofar as they affect property and casualty insurance and reinsurance coverage or claims that XL may have as a counterparty; (bb) judicial decisions and rulings, new theories of liability or emerging claims coverage issues, legal tactics and settlement terms; and (cc) the other factors set forth in XL’s reports on Form 10-K and Form 10-Q and other documents on file with the Securities and Exchange Commission. XL undertakes no obligation to update publicly or revise any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by the federal securities laws.

XL intends to use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included on the website in the Investor Relations section. Accordingly, investors should monitor such portions of XL's website, in addition to following its press releases, SEC filings and public conference calls and webcasts.

SUMMARY CONSOLIDATED FINANCIAL DATA

Adjusted Income statement and other data (Note 1):

(Unaudited) (Note 2)

Adjusted Revenues (Note 1):

2,091,028

1,233,985

6,060,608

4,721,680

2,423,552

1,473,412

5,839,605

4,458,845

Net investment income - excluding Life Funds Withheld Assets (Note 1)

178,560

169,956

512,994

616,753

Net realized gains (losses) on investments sold - excluding Life Funds Withheld Assets (Note 1)

109,886

Net realized and unrealized (losses) gains on derivative instruments

(7,903

57,127

18,540

Income (loss) from investment fund affiliates

(3,715

24,500

62,991

75,486

Fee income and other

10,782

23,095

31,942

Total adjusted revenues

2,597,648

1,693,594

6,504,564

5,311,452

Adjusted Expenses (Note 1):

Net losses and loss expenses incurred - P&C operations

1,464,285

859,588

3,385,307

2,518,973

Claims and policy benefits - run-off Life operations

22,579

20,101

64,047

218,987

Acquisition costs

409,173

182,882

904,486

566,915

Operating expenses

570,021

341,379

1,405,506

984,813

Exchange (gains) losses

20,415

(21,286

43,493

10,296

Interest expense

51,929

42,851

153,034

99,877

Total adjusted expenses

2,538,402

1,425,515

5,955,873

4,399,861

Income (loss) before income tax, income (loss) from operating affiliates, and Life Retrocession Arrangements (Note 1)

59,246

268,079

548,691

911,591

Net income (loss) from operating affiliates

20,021

40,326

94,044

Provision (benefit) for income tax, excluding amount related to loss on sale of life reinsurance subsidiary (Note 1)

(37,042

30,057

20,135

103,824

Gain on sale of operating affiliate

340,407

Net income (loss) before Life Retrocession Arrangements (Notes 1 and 3)

104,484

258,043

909,289

901,811

Contribution from Life Retrocession Arrangements (Note 1)

(19,313

(148,076

169,471

(154,623

Loss on sale of life reinsurance subsidiary, net of tax (Note 1)

621,323

85,171

109,967

1,078,760

125,865

Non-controlling interests

57,889

37,583

100,158

77,024

Other comprehensive income - Contribution from Life Retrocession Arrangements (Note 1)

(169,471

Other comprehensive income - P&C, Corporate and Other

(140,405

(123,181

(359,905

340,649

Comprehensive Income

(93,810

97,279

449,226

544,113

Note 1: This presentation includes non-GAAP financial measures, as income and expense items related to the Life Retrocession Arrangements are excluded from revenues and expenses and shown above in "Contribution from Life Retrocession Arrangements". Investment results for the Life Funds Withheld Assets - including interest income, unrealized gains and losses, and gains and losses from sales - are passed directly to the reinsurer pursuant to a contractual arrangement which is accounted for as a derivative. Changes in the fair value of the embedded derivative associated with these Life Retrocession Arrangements are also grouped above within "Contribution from Life Retrocession Arrangements".

Note 2: The Company's results for the nine months ended September 30, 2015 include those of Catlin from May 1, 2015

Note 3: "Net income (loss) before Life Retrocession Arrangements" less "Non-controlling interests" is equal to "Net income (loss) attributable to ordinary shareholders excluding Contribution from Life Retrocession Arrangements" reported on page 8.

Selected balance sheet data:

(U.S. dollars in thousands except share and per share amounts)

December 31, 2014

34,792,048

30,484,053

Cash and cash equivalents

3,340,070

2,521,814

Investments in affiliates

1,592,841

1,637,620

Unpaid losses and loss expenses recoverable

5,197,577

3,429,368

Goodwill and other intangible assets

2,213,688

447,952

Total assets

60,416,523

45,046,819

25,789,541

19,353,243

Deposit liabilities

1,194,815

1,245,367

Future policy benefit reserves

4,323,748

4,707,199

Funds withheld liability on Life Retrocession Arrangements, net of future policy benefit reserves recoverable

930,834

1,155,016

Unearned premiums

7,840,331

3,973,132

Notes payable and debt

2,726,917

1,662,580

Total shareholders’ equity

13,900,508

11,435,766

11,938,229

10,033,751

Ordinary shares outstanding (Note 2)

299,356,093

255,222,835

Basic book value per ordinary share (Note 3)

Fully diluted book value per ordinary share (Note 3)

Fully diluted tangible book value per ordinary share (Note 3)

Note 1: Certain items have been reclassified to conform to the current period presentation.

Note 2: Ordinary shares outstanding include all ordinary shares issued and outstanding (as disclosed on the face of the balance sheet) as well as all director share units outstanding.

Note 3: Book value per ordinary share, fully diluted book value per ordinary share and fully diluted tangible book value per ordinary share are non-GAAP financial measures. Fully diluted book value per ordinary share represents book value per ordinary share (total shareholders’ equity less non-controlling interest in equity of consolidated subsidiaries, divided by the number of outstanding ordinary shares at any period end) combined with the dilutive impact of potential future share issuances at any period end. Fully diluted tangible book value per ordinary share is calculated in the same manner as fully diluted book value per ordinary share except that goodwill and intangible assets are excluded from ordinary shareholders’ equity.

RECONCILIATION

The following is a reconciliation of XL’s net income (loss) attributable to ordinary shareholders to operating net income (loss) (Note 3) and also includes the calculation of annualized return on average ordinary shareholders’ equity and annualized return on average ordinary shareholders’ equity excluding average unrealized gains and losses on investments, in each case based on operating net income (loss) for the

three and nine months ended September 30, 2015 and 2014

Net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets

126,140

201,264

116,333

218,810

Net realized (gains) losses on investments and net unrealized (gains) losses on investments, Trading - Life Funds Withheld Assets

(51,608

(145,513

13,619

Net investment income - Life Funds Withheld Assets, net of tax

(46,586

(56,474

(143,869

(75,639

Foreign exchange revaluation (gains) losses on and other income and expense items related to Life Funds Withheld Assets

(8,634

(2,186

(2,167

Net income (loss) attributable to ordinary shareholders excluding Contribution from Life Retrocession Arrangements (Note 3)

46,594

220,460

809,130

824,787

Net realized (gains) losses on investments sold - excluding Life Funds Withheld Assets, net of tax

(8,860

(3,743

(104,898

Net realized and unrealized (gains) losses on derivatives, net of tax

(5,131

(57,030

(18,537

Net realized and unrealized (gains) losses on investments and derivatives related to the Company's insurance company affiliates, net of tax

(2,728

Exchange (gains) losses, net of tax

13,365

(19,389

38,728

Expenses related to Catlin acquisition

63,048

(340,407

Operating net income (loss) (Note 4)

Per ordinary share results: (Note 5)

Weighted average ordinary shares outstanding:

301,867,208

264,353,291

282,505,975

270,494,192

Diluted - Net income

306,954,345

269,139,902

287,473,059

274,911,937

Diluted - Operating net income

Return on ordinary shareholders' equity:

Closing ordinary shareholders' equity (Note 6)

9,841,054

Closing unrealized (gain) loss on investments, net of tax (Note 7)

(1,005,547

(1,253,127

Average ordinary shareholders' equity excluding average unrealized gains (losses) on investments, net of tax (Note 5)

11,037,815

8,702,648

9,726,183

8,926,159

Average ordinary shareholders' equity (Note 6)

12,092,764

9,937,672

10,985,990

9,919,344

Annualized operating net income (loss) (Note 4)

283,168

748,352

681,287

940,419

Annualized operating return on average ordinary shareholders' equity (Notes 4 and 6)

Annualized operating return on average ordinary shareholders' equity excluding average unrealized gains and losses on investments (Notes 4 and 6)

Note 1: Certain amounts have been reclassified to conform to the current period presentation.

Note 3: Investment results for the Life Funds Withheld Assets - including interest income, unrealized gains and losses, and gains and losses from sales - are passed directly to the reinsurer pursuant to a contractual arrangement which is accounted for as a derivative. Changes in the fair value of the embedded derivative associated with these Life Retrocession Arrangements are grouped within "Net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets" in the reconciliation above.

Note 4: Defined as net income (loss) attributable to ordinary shareholders excluding: (1) our net investment income - Life Funds Withheld Assets, net of tax, (2) our net realized (gains) losses on investments sold - excluding Life Funds Withheld Assets, net of tax, (3) our net realized (gains) losses on investments sold (including OTTI) and net unrealized (gains) losses on investments, Trading - Life Funds Withheld Assets, (4) our net realized and unrealized (gains) losses on derivatives, net of tax, (5) our net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets, (6) our share of items (2) and (4) for XL's insurance company affiliates for the periods presented, (7) our foreign exchange (gains) losses, net of tax, (8) our expenses related to the Catlin acquisition, net of tax, and (9) our gain on sale of our interest in our operating affiliate, ARX, and (10) our loss on sale of life reinsurance subsidiary, XLLR, net of tax. In addition to presenting net income (loss), we believe that showing "operating net income (loss)", "annualized operating return on average ordinary shareholders' equity" and "annualized operating return on average ordinary shareholders' equity excluding average unrealized gains and losses on investments" enables investors and other users of our financial information to analyze our performance in a manner similar to how we analyze our performance. In this regard, we believe that providing only a GAAP presentation of net income (loss) would make it more difficult for users of our financial information to evaluate our underlying business. We also believe that equity analysts and certain rating agencies that follow us (and the insurance industry as a whole) exclude these items from their analyses for the same reasons, and they request that we provide this non-GAAP financial information on a regular basis. A reconciliation of our net income (loss) attributable to ordinary shareholders to operating net income (loss) is provided above.

Note 5: Diluted weighted average number of ordinary shares outstanding is used to calculate per share data except where it is anti-dilutive to earnings per share or where there is a net loss. When it is anti-dilutive or when a net loss occurs, basic weighted average ordinary shares outstanding is utilized in the calculation of net loss per share and net operating loss per share.

Note 6: Ordinary shareholders’ equity is defined as total shareholders’ equity less non-controlling interest in equity of consolidated subsidiaries.

Note 7: Unrealized (gain) loss on investments, net of tax is the cumulative impact of mark to market fluctuations on our investment portfolio that have not been realized through sales.

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 press release contains the presentation of (i) operating net income (loss) (“Operating Net Income”), which is defined as net income (loss) attributable to ordinary shareholders excluding: (1) net investment income - Life Funds Withheld Assets, net of tax, (2) net realized (gains) losses on investments sold - excluding Life Funds Withheld Assets, net of tax,(3) net realized (gains) losses on investments sold (including OTTI) and net unrealized (gains) losses on investments, Trading - Life Funds Withheld Assets, (4) net realized and unrealized (gains) losses on derivatives, net of tax, (5) net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets, (6) share of items (2) and (4) for XL's insurance company affiliates for the periods presented, (7) foreign exchange (gains) losses, net of tax, (8) expenses related to the Catlin acquisition, net of tax, (9) gain on the sale of our interest in our operating affiliate, ARX, and (10) the loss on the sale of life reinsurance subsidiary, XLLR, net of tax; (ii) annualized return on average ordinary shareholders’ equity (“ROE”) based on operating net income (loss) (“Operating ROE”); (iii) Operating ROE excluding average unrealized gains and losses on investments; (iv) annualized net income (loss) attributable to ordinary shareholders excluding the Contribution from the Life Retrocession Arrangements and (v) book value per ordinary share (ordinary shareholders’ equity divided by the number of shares outstanding at the period end date), fully diluted book value per ordinary share (book value per share combined with the dilutive impact of potential future share issues at any period end), and fully diluted tangible book value per ordinary share (calculated in the same manner as fully diluted book value per ordinary share except that goodwill and intangible assets are excluded from ordinary shareholders’ equity)

These items are "non-GAAP financial measures" as defined in Regulation G. The reconciliation of such measures to the most directly comparable GAAP financial measures in accordance with Regulation G is included in this press release on page 8.

Although the investment of premiums to generate income (or loss) and realize capital gains (or losses) is an integral part of XL’s operations, the determination to realize capital gains (or losses) is independent of the underwriting process. In addition, under applicable GAAP accounting requirements, losses can be created as the result of other than temporary declines in value and from goodwill impairment charges without actual realization. In this regard, certain users of XL’s financial information, including certain rating agencies, evaluate earnings before tax and capital gains to understand the profitability of the operational sources of income without the effects of these two variables. Furthermore, these users believe that, for many companies, the timing of the realization of capital gains and the recognition of goodwill impairment charges are largely a function of economic and interest rate conditions.

Net realized and unrealized (gains) losses on derivatives, net of tax, include all derivatives entered into by XL other than certain credit derivatives and the life retrocession embedded derivative. With respect to credit derivatives, because XL and its insurance company operating affiliates generally hold financial guaranty contracts written in credit default derivative form to maturity, the net effects of the changes in fair value of these credit derivatives are excluded (similar with other companies’ treatment of such contracts) as the changes in fair value each quarter are not indicative of underlying business performance.

Net investment income - Life Funds Withheld Assets, net of tax, and net realized (gains) losses on the life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets, have been excluded because, as a result of the Life Retrocession Arrangement, XL no longer shares in the risks and rewards of the underlying performance of the Life

Funds Withheld Assets that support these retrocession arrangements.  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 the Life Funds Withheld Assets and changes in the fair value of the embedded derivative associated with these life retrocession arrangements are not relevant to XL’s underlying business performance. In addition, the loss on the sale of life reinsurance subsidiary, net of tax, has been excluded due to the one-time, non-operating nature of this loss

Foreign exchange (gains) losses in the income statement are only one element of the overall impact of foreign exchange fluctuations on XL’s financial position and are not representative of any economic gain or loss made by XL. Accordingly, it is not a relevant indicator of financial performance and it is excluded.

In summary, XL evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income (loss), XL believes that showing operating net income (loss) enables investors and other users of XL’s financial information to analyze XL’s performance in a manner similar to how management of XL analyzes performance. In this regard, XL believes that providing only a GAAP presentation of net income (loss) would make it much more difficult for users of XL’s financial information to evaluate XL’s underlying business. Also, as stated above, XL believes that the equity analysts and certain rating agencies that follow XL (and the insurance industry as a whole) exclude these items from their analyses for the same reasons and they request that XL provide this non-GAAP financial information on a regular basis.

Operating ROE is a widely used measure of any company’s profitability that is calculated by dividing annualized operating net income for any period other than a fiscal year when actual operating income is used by the average of the opening and closing ordinary shareholders’ equity. XL establishes target Operating ROEs for its total operations, segments and lines of business. If XL’s Operating ROE targets are not met with respect to any line of business over time, XL seeks to re-evaluate these lines. Operating ROE excluding net unrealized gains and losses on investments is an additional measure of a company's profitability that eliminates the impacts of mark to market fluctuations on a company's investment portfolio that have not been realized through sales, which XL believes provides a more consistent measure of company performance.

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. XL Group plc next reports earnings on October 26, 2015.

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Other recent filings from the company include the following:

XL Group: Abbe F. Goldstein, Cfa Carol Parker Trott Investor Relations Media Relations - Dec. 7, 2017

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