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•

All excess tax benefits and tax deficiencies, including tax benefits of dividends on share-based payment awards, should be recognized as income tax expense or benefit (regardless of whether the benefit reduces taxes payable in the current period) in the income statement, as opposed to additional paid-in capital as previous GAAP prescribed. This amendment has been applied prospectively from January 1, 2017.

•	The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. Adoption of this amendment had no impact on the Company's financial position or results of operations.

•	The threshold for share-based payment awards to qualify for equity classification now permits withholding up to maximum statutory tax rates in applicable jurisdictions, as opposed to employer minimum statutory withholding requirements in those jurisdictions. Adoption of this amendment had no impact on the Company's financial position.

•	Excess tax benefits now should be classified along with other income tax cash flows as an operating activity in the statement of cash flows. This amendment has been applied prospectively from January 1, 2017.

•

Where an employer withholds shares for employee tax-withholding purposes, the resulting employee taxes paid should be classified as a financing activity as opposed to an operating activity in the statement of cash flows. This amendment was applied retrospectively. The withholding taxes are now included within the financing section of the statement of cash flows. The statement of cash flows for the nine months ended September 30, 2016 has been re-presented by $28.2 million to conform to the current year presentation.

•

Companies may now make an entity-wide accounting policy election to either estimate the number of share-based payment awards expected to vest (in line with previous GAAP) or account for forfeitures as they occur. The Company elected not to change its previous accounting policy to measure forfeitures, and continues to measure the expense for share-based compensation based on the number of awards expected to vest.

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•

Deferred acquisition costs and value of business acquired - The adjustment consists of two components. The first adjustment is the elimination of Catlin's deferred acquisition costs asset. The second adjustment is the establishment of the value of business acquired asset, which represents the present value of the expected underwriting profit within the unearned premiums liability, net of reinsurance, less costs to service the related policies and a risk premium. This adjustment was amortized to underwriting, acquisition and insurance expenses over approximately two years, as the contracts for business in-force at the Acquisition Date expired. The Company fully amortized this balance as of June 30, 2017.

•

Unpaid losses and loss adjustment expenses - Unpaid losses and loss adjustment expenses acquired includes an increase to adjust the carrying value of Catlin's historical unpaid losses and loss adjustment expenses, net of related reinsurance recoverable, to fair value at the Acquisition Date. The estimated fair value consists of the present value of the expected net loss and loss adjustment expense payments plus a risk premium. This adjustment, plus the unamortized fair value adjustment included in Catlin's historical unpaid losses and loss adjustment expenses, is being amortized to losses and loss adjustment expenses over a weighted average period of approximately 20 years, based on the estimated payout pattern of net reserves at the Acquisition Date.

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(1)	Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from the Company's run-off life operations.

(2)	The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.

(3)	Operating expenses of the segments exclude Corporate operating expenses, shown separately.

(4)	Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.

(5)	The net results from P&C structured products include net investment income and interest expense of $12.3 million and $(5.6) million, respectively.

(6)	Net fee income and other includes operating expenses of $13.5 million from the Company's loss prevention consulting services business.

(7)	Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments.

(8)	Ratios are based on net premiums earned from P&C operations.

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(1)	Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from the Company's run-off life operations.

(2)	The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.

(3)	Operating expenses of the segments exclude Corporate operating expenses, shown separately.

(4)	Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.

(5)	The net results from P&C structured products include net investment income and interest expense of $14.1 million and $6.4 million, respectively.

(6)	Net fee income and other includes operating expenses of $11.9 million from the Company's loss prevention consulting services business.

(7)	Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments.

(8)	Ratios are based on net premiums earned from P&C operations.

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(1)	Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from the Company's run-off life operations.

(2)	The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.

(3)	Operating expenses of the segments exclude Corporate operating expenses, shown separately.

(4)	Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.

(5)	The net results from P&C structured products include net investment income and interest expense of $39.2 million and $15.5 million, respectively.

(6)	Net fee income and other includes operating expenses of $37.2 million from the Company's loss prevention consulting services business.

(7)	Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments.

(8)	Ratios are based on net premiums earned from P&C operations.

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(1)	Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes. The underwriting profit (loss) and its components within this section are predominantly driven from the Company's run-off life operations.

(2)	The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.

(3)	Operating expenses of the segments exclude Corporate operating expenses, shown separately.

(4)	Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.

(5)	The net results from P&C structured products include net investment income and interest expense of $40.9 million and $29.1 million, respectively.

(6)	Net fee income and other includes operating expenses of $36.0 million from the Company's loss prevention consulting services business.

(7)	Interest expense excludes interest expense related to structured products recorded in the Insurance and Reinsurance segments.

(8)	Ratios are based on net premiums earned from P&C operations.

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(1)	Other within the Insurance segment includes: surety, structured indemnity and certain discontinued lines. Other within the Reinsurance segment includes: whole account contracts, structured indemnity and other lines.

(2)

Amounts from the prior year have been re-presented to reflect current mapping of underlying lines of business to be consistent with the manner in which they are reflected in the current period. The most significant movements include movements of certain items out of Other as follows: Programs business is now reflected in Property or Casualty, depending upon the predominant line for each program; Surplus lines is now reflected primarily in Casualty; and Accident & Health is now reflected in Specialty.

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(1)	Other within the Insurance segment includes: surety, structured indemnity and certain discontinued lines. Other within the Reinsurance segment includes: whole account contracts, structured indemnity and other lines.

(2)

Amounts from the prior year have been re-presented to reflect current mapping of underlying lines of business to be consistent with the manner in which they are reflected in the current period. The most significant movements include movements of certain items out of Other as follows: Programs business is now reflected in Property or Casualty, depending upon the predominant line for each program; Surplus lines is now reflected primarily in Casualty; and Accident & Health is now reflected in Specialty.

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(1)	Represents the non-credit component of OTTI losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date.

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(1)	Represents the non-credit component of OTTI losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date.

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(1)

The fair value movements in derivative assets and liabilities relating to modified coinsurance funds withheld contracts are included within the associated asset or liability at each period end on the face of the Unaudited Consolidated Balance Sheets. Notional amounts associated with reinsurance agreements under which the Company assumes reinsurance risk are recorded as asset derivative notional amounts. Notional amounts associated with the GreyCastle Life Retro Arrangements and other outward reinsurance contracts under which the Company cedes risk are recorded as liability derivative notional amounts. Included in the liability derivative notional amount at September 30, 2017 is the cumulative net realized and unrealized loss on the life retrocession embedded derivative of $1.0 billion.

(2)

At September 30, 2017, the Company held cash collateral related to foreign currency derivative positions and certain other derivative positions of nil for derivatives in an asset position and paid cash collateral of $25.2 million for derivatives in a liability position. At December 31, 2016, the Company held cash collateral related to a foreign currency derivative position and certain other derivative positions of $37.0 million for derivatives in an asset position and paid cash collateral of $5.8 million for derivatives in a liability position. The assets and liabilities related to the net collateral paid or held were recorded as Other assets and Other liabilities within the Unaudited Consolidated Balance Sheets as the collateral and derivative positions are not intended to be settled on a net basis.

(1)	Derivative gains (losses) from derivative instruments designated as hedges of an investment in a foreign operation are recorded in the cumulative translation adjustment account within AOCI for each period.

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(1)	Short-term investments consist primarily of Other asset-backed securities, U.S. and Non-U.S. Government securities and Corporate securities.

(2)	Cash equivalents balances subject to fair value measurement include certificates of deposit and money market funds. Operating cash balances are not subject to recurring fair value measurement guidance.

(3)

Excluded from Other Investments are certain investments that are measured using net asset value as a practical expedient in the amount of $194.7 million and $322.9 million at September 30, 2017 and December 31, 2016, respectively. Under GAAP, these investments are excluded from the fair value hierarchy table. In addition, the Other investments balance excludes loans held at amortized cost. These investments, which totaled $172.5 million at September 30, 2017 and $142.3 million at December 31, 2016, are carried at amortized cost. For further information, see Item 8, Note 6, "Other Investments," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

(4)

Other assets and other liabilities include derivative instruments. The derivative balances included in each category are reported gross of cash collateral by level with a counterparty netting adjustment presented separately in the Counterparty Netting column. The fair values of the individual derivative contracts are reported gross in their respective levels based on the fair value hierarchy. For further details regarding derivative fair values and associated collateral received or paid, see Note 5, "Derivative Instruments."

(5)	Funds withheld on GreyCastle Life Retro Arrangements (net of future policy benefit reserves recoverable) include balances related to the life retrocession embedded derivative, under which all investment results associated with the Life Funds Withheld Assets related to the GreyCastle Life Retro Arrangements described in Note 1, "Significant Accounting Policies," accrue to the benefit of GCLR.

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(1)	Net transfers include both movement in and movement out of Level 3. Other asset-backed securities, for the three months ended September 30, 2017, includes $3.1 million of outgoing transfers partially offset by $0.7 million of incoming transfers.

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(1)

Net transfers include both movement in and movement out of Level 3. Corporate for the nine months ended September 30, 2017, includes $1.4 million of incoming transfers partially offset by $0.1 million of outgoing transfers. RMBS for the nine months ended September 30, 2017, includes $4.1 million of incoming transfers partially offset by $3.4 million of outgoing transfers. Other asset-backed securities, for the nine months ended September 30, 2017, includes $9.8 million of outgoing transfers partially offset by $6.8 million of incoming transfers. Other investments, for the nine months ended September 30, 2016, includes $61.3 million of outgoing transfers partially offset by $15.5 million of incoming transfers. Other asset-backed securities, for the nine months ended September 30, 2016, includes $5.0 million of outgoing transfers partially offset by $3.0 million of incoming transfers.

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•	For professional lines, net prior year development was $54.8 million favorable. This was driven by better than expected loss experience in Bermuda regarding the 2015 and 2016 accident years, partially offset by strengthening in the international financial lines management liability book to reflect significant large loss experience.

•

For casualty lines, net prior year development was $74.4 million favorable. This was driven by better than expected loss experience on mature years of a North America excess casualty book resulting in releases of $50.5 million, as well as reductions to reflect better than expected loss experience reported on North America construction and global risk management. This was partially offset by strengthening to reflect worse than expected loss experience reported on the excess and surplus portfolio.

•	For property lines, net prior year development was $91.5 million unfavorable. This was driven by deteriorations in the London wholesale property book which led to strengthening of $49.4 million, and significant adverse large loss experience on the energy property book resulting in strengthening of $38.3 million.

•	For specialty lines, net prior year development was $7.1 million unfavorable. This was driven by worse than expected large loss experience in more recent years in the crisis management and political risk & trade credit portfolios, partially offset by better than expected attritional loss experience in the aerospace book.

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▪	Net favorable prior year development for the short-tail lines totaled $124.4 million. Details of the significant components are as follows:

•	For property lines, net prior year development was $115.0 million favorable, primarily due to better than expected experience on attritional losses and favorable development on catastrophes and other large losses.

•	For specialty lines, net prior year development was $9.4 million favorable, mainly due to better than expected experience on attritional losses, partially offset by unfavorable movement on large losses in the Aviation book.

▪	Net unfavorable prior year development for the long-tail lines totaled $61.5 million. Details of the significant components are as follows:

▪	For casualty lines, net prior year development was $61.0 million unfavorable primarily due to the decrease of the discount rate used to calculate lump sum awards in U.K. bodily injury cases from 2.5% to negative 0.75%, which impacted the Company's carried reserves for relevant lines of business, primarily U.K. motor business.

▪	For other lines, net prior year development was $0.5 million unfavorable mainly due to worse than expected experience on attritional losses on the whole account book, partially offset by a release of large losses in the credit and surety book.

(1)

Excluded from the table are certain credit facilities under which the Company was permitted to utilize up to $750.0 million at September 30, 2017 and $1.0 billion at December 31, 2016, for revolving loans to support general operating and financing needs. At September 30, 2017 and December 31, 2016, $2 million and $245 million, respectively, were utilized under these facilities to issue letters of credit, leaving $748.0 million and $755.0 million, respectively, available to support other operating and financing needs.

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(1)	The Company has the option to increase the size of the Syndicated Secured and Unsecured Facilities by an aggregate of $500 million.

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(1)

For certain annuity contracts that are subject to the GreyCastle Life Retro Arrangements, policy benefit reserves were historically increased for the impact of changes in unrealized gains on investments supporting such contracts as if the gains had been realized, with a corresponding entry to other comprehensive income ("Shadow Adjustments"). Upon completion of the GreyCastle Life Retro Arrangements, no further Shadow Adjustments were recorded. At December 31, 2016, the cumulative impact of the Shadow Adjustments was $212.1 million. During the nine months ended September 30, 2017, net movements of $(14.0) million were recorded, resulting in a total cumulative net impact of Shadow Adjustments on future policy benefit reserves of $198.1 million at September 30, 2017.

(2)

During the three months ended September 30, 2017, the Company recorded an out-of-period reduction of $17.4 million to "Foreign currency translation adjustments, net of tax," within the Unaudited Consolidated Statements of Comprehensive Income.  This adjustment arose from a previously unrecognized tax liability on foreign exchange movements that should have been reflected in the comprehensive income of a prior period.  The Company has evaluated the quantitative and qualitative aspects of this correction and concluded that the impact of recognizing it during this quarter is not material to the Unaudited Consolidated Financial Statements, nor is it material to any prior period consolidated financial statements.

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(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

(2)	XL Group balance includes investment in $0.5 million of XLIT Series E Non-Cumulative Preference Ordinary Shares.

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(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

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(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

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(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

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(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

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(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

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(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

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(1)	Results for the period include XL-Ireland, which prior to the Redomestication was the ultimate parent and is now in liquidation proceedings as outlined in Note 1, "Significant Accounting Policies." The Company expects the net assets of XL-Ireland to be distributed to XL Group upon completion of the liquidation.

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▪	the continuation of downward trends in rates for property and casualty insurance and reinsurance;

▪

changes in the size of claims we receive relating to unpredictable natural or man-made catastrophe losses, such as hurricanes, earthquakes, typhoons, floods, nuclear accidents or terrorism, due to the preliminary nature of some reports and estimates of loss and damage to date, and in particular our loss estimates and industry loss estimates relating hurricanes Harvey, Irma and Maria, the Mexican earthquakes and Typhoon Hato in Southeast Asia, given the complexities and nature of these particular events, including the magnitude, proximity and recent occurrence of these events, limited claims data received to date, the likelihood of longer development periods associated with the specific characteristics of these events and the geographic and infrastructure limitations related to the areas affected by these events, among other matters;

▪	changes in the number of insureds and ceding companies affected or the ultimate number and value of individual claims related to natural catastrophe events due to the preliminary nature of reports and estimates of loss and damage to date;

▪	changes in the amount or type of business that we write, whether due to our actions, changes in market conditions or other factors, and the aggregate amount of premiums attributable to those businesses;

▪	the availability, cost or quality of ceded reinsurance, and the timely and full recoverability of such reinsurance, or other amounts due to us, or changes to our projections relating to such recoverables;

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▪	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 we anticipated;

▪	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 our ability to maintain or increase our business volumes or profitability;

▪	greater frequency or severity of claims and loss activity than our underwriting, reserving or investment practices anticipate based on historical experience or industry data;

▪

the impact of changes in the global financial markets, such as the effects of inflation on our business including on pricing and reserving, changes in interest rates, credit spreads and foreign currency exchange rates and future volatility in the world's credit, financial and capital markets that adversely affect the performance and valuation of our investments, future financing activities and access to such markets, our ability to pay claims or our general financial condition;

▪	our ability to successfully implement our business strategy;

▪	our ability to successfully attract and raise additional third party capital for existing or new investment vehicles;

▪	changes in credit ratings or rating agency policies or practices, which could trigger cancellation provisions in our assumed reinsurance agreements or affect the availability of our credit facilities;

▪	the potential for changes to methodologies, estimations and assumptions that underlie the valuation of our financial instruments, that could result in changes to investment valuations;

▪	changes to our assessment as to whether it is more likely than not that we will be required to sell, or have the intent to sell, available-for-sale ("AFS") fixed maturity securities before their anticipated recovery;

▪	unanticipated constraints on our liquidity, including the availability of borrowings and letters of credit under our credit facilities, which may inhibit our ability to support our operations, including our ability to underwrite policies and pay claims;

▪	the ability of our subsidiaries to pay dividends to XL Group, XLIT Ltd. ("XLIT") and Catlin Insurance Company Ltd;

▪	changes in regulators or regulations applicable to our brokers or customers or to us, such as changes in regulatory capital balances that our operating subsidiaries must maintain;

▪	the effects of business disruption, economic contraction or economic sanctions due to unpredictable global political and social conditions such as war, terrorism or other hostilities, cyber-attacks, or pandemics;

▪	the actual amount of new and renewal business and acceptance of our products and services, including new products and services and the materialization of risks related to such products and services;

▪	changes in the distribution or placement of risks due to increased consolidation of insurance and reinsurance brokers;

▪	bankruptcies or other financial concerns of companies insofar as they affect property and casualty insurance and reinsurance ("P&C") coverages or claims that we may have as a counterparty;

▪	the loss of key personnel;

▪	the effects of mergers, acquisitions and divestitures, including our ability to modify our internal control over financial reporting, changes to our risk appetite and our ability to realize the strategic value or financial benefits expected, in each case, as a result of such transactions;

▪

the economic, political, monetary and operational impacts of the "Brexit" referendum held on June 23, 2016 in which the U.K. electorate voted to withdraw from the European Union ("E.U."), including unanticipated costs or complications associated with our decision to redomesticate XL Insurance Company SE from the U.K. to Ireland, or the possibility that this redomestication or other Brexit-related decisions do not have the results anticipated;

▪	changes in general economic, political or monetary conditions, including new or continued sovereign debt concerns in Euro-Zone countries or emerging markets such as Brazil or China, or governmental actions for the purpose of stabilizing financial markets;

▪	changes in applicable tax laws, tax treaties or tax regulations or the interpretation or enforcement thereof;

▪	judicial decisions and rulings, new theories of liability or emerging claims coverage issues, legal tactics and settlement terms;

•	the effects of climate change (such as changes to weather patterns, sea levels or temperatures) on our business, which our modeling or risk management practices may not adequately address due to the uncertain nature of climate change; and

•	the other factors set forth in Item 1A, "Risk Factors," included the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and our other documents on file with the SEC.

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(1)	Net investment income - P&C operations includes all net investment income related to the net results from structured products and excludes all net investment income from the assets supporting the Life Funds Withheld Assets, as defined in Item 1, Note 1, "Significant Accounting Policies," to the Unaudited Consolidated Financial Statements included herein.

(2)	Represents a non-GAAP financial measure as discussed further below. See "Reconciliation of Non-GAAP Financial Measures" below.

*	N/M - Not Meaningful

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*	N/M - Not Meaningful

▪	The combined ratio related to the P&C operations is the sum of the loss and loss expense ratio and the underwriting expense ratio. A combined ratio under 100% represents an underwriting profit and over 100% represents an underwriting loss. In the P&C industry, the combined ratio is a widely used measure of underwriting profitability.

▪	The loss and loss expense ratio related to the P&C operations is calculated by dividing the losses and loss expenses incurred by the net premiums earned for the Insurance and Reinsurance segments.

▪	The acquisition expense ratio related to the P&C operations is calculated by dividing the acquisition costs incurred by the net premiums earned for the Insurance and Reinsurance segments.

▪	The operating expense ratio related to the P&C operations is calculated by dividing the operating expenses incurred by the net premiums earned for the Insurance and Reinsurance segments.

▪	The underwriting expense ratio related to the P&C operations is the sum of acquisition costs and operating expenses for the Insurance and Reinsurance segments divided by net premiums earned for the Insurance and Reinsurance segments.

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(1)

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 the GreyCastle Life Retrocession Arrangements are reflected within "Net realized and unrealized (gains) losses on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets" in the reconciliation.

(2)	The tax impact was calculated at the applicable jurisdictional effective tax rate, which could differ from the Company’s effective tax rate.

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

1)	The impact of the decrease of the discount rate used to calculate lump sum awards in U.K. bodily injury cases ("Ogden Rate");

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(1)	Source: Bloomberg Finance L.P.

(1)	Source: Bloomberg Finance L.P.

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(1)	Detailed analyses of aggregated in-force exposures and probable maximum loss levels are done periodically. The measurement dates represent the date of the last completed detailed analysis by geographical zone.

(2)	Probable maximum losses, which include secondary uncertainty that incorporates variability around the expected probable maximum loss for each event, do not represent our maximum potential exposures and are pre-tax.

(3)

Adjusted Tangible Capital ($10.1 billion), a non-GAAP financial measure used in risk assessment as a measure of our available capital, is defined as Total Shareholders’ Equity ($11.5 billion) plus (i) outstanding subordinated notes due 2025 ($493.9 million), 2045 ($472.7 million) and 2047 ($576.7 million) less (ii) Goodwill and Other Intangible Assets ($2.2 billion) and less (iii) Adjusted Accumulated Other Comprehensive Income ($724.7 million), which is defined as Accumulated Other Comprehensive Income ($968.9 million) plus Shadow Adjustments, as defined in Item 1, Note 15, "Accumulated Other Comprehensive Income (Loss)," to the Unaudited Consolidated Financial Statements included herein ($198.1 million) less gross unrealized gains resulting from Life Funds Withheld Assets ($442.4 million).

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▪	Global Lines - increase of 7.6%, for the three months ended September 30, 2017, is mainly driven by higher new business in accident & health, fine art & specie and political risk & trade credit business lines.

▪	International - increase of 29.9%, for the three months ended September 30, 2017, is attributable to higher new business in international property and an improvement in rates in international financial lines.

▪	North America - decrease of 0.7%, for the three months ended September 30, 2017, is due to lower new business in U.S. programs and lower retentions in excess and surplus lines, partially offset by an increase in premiums in North America property lines attributable to an improvement in pricing and higher retention in North America construction lines.

▪	Global Lines - increase of 0.6%, for the nine months ended September 30, 2017, is mainly driven by higher new business in accident & health, fine art & specie and political risk & trade credit business lines. These increases were partially offset by lower premiums in energy property lines driven by lower retention and lower new business in aerospace.

▪	International - increase of 14.1%, for the nine months ended September 30, 2017, is attributable to growth in international property lines and international financial lines.

▪	North America - increase of 6.2%, for the nine months ended September 30, 2017, due to higher new and renewal business in global risk management, higher enrollments in existing programs in our construction sub-contractor default business and an improvement in rates in the North America property business lines.

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▪	Operating expense ratio - improvement of 2.2 percentage points primarily driven by a reduction to variable compensation costs resulting from the natural catastrophe loss impact on our results.

▪	Acquisition expense ratio - deterioration was driven in part by lower ceded commissions, due in part to an increase in facultative and global programs reinsurance as compared to the prior year, which carries lower commission rates combined with lower effective profit commission on whole account reinsurance.

▪	Operating expense ratio - improvement of 1.7 percentage points due to synergies realized from the Catlin Acquisition, as well as a reduction to variable compensation costs resulting from the natural catastrophe loss impact on our results.

▪	Acquisition expense ratio - slight improvement largely by changes to business mix.

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*	N/M - Not Meaningful

▪	Bermuda - increase of 108.5%, for the three months ended September 30, 2017, is mainly due to significant new business in casualty treaty, reinstatement premiums on the recent significant natural catastrophe activity and favorable premium adjustments in casualty treaty.

▪	North America - decrease of 16.5%, for the three months ended September 30, 2017, is driven by cancellations within the casualty line of business due to the competitive pricing environment as well as reduced volumes reinsured by our cedants, partially offset by new business in property treaty.

▪	London - increase of 26.1%, for the three months ended September 30, 2017, is primarily driven by reinstatement premiums on significant natural catastrophe activity.

▪	EMEA - increase of 137.9%, for the three months ended September 30, 2017, is mainly due to significant new business in casualty treaty and property treaty, reinstatement premiums on the recent significant natural catastrophe activity and favorable premium adjustments in casualty treaty.

▪	LAC - increase of 4.6%, for the three months ended September 30, 2017, is driven predominantly by new business and increased shares written within property treaty.

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▪

Bermuda - increase of 14.4%, for the nine months ended September 30, 2017, is primarily due to new business written within the property line of business, reinstatement premiums from significant natural catastrophe activity, and the renewal of a specific multi-year deal within casualty lines during the first quarter of 2017. These increases were partially offset by cancellations predominantly within specialty business.

▪	North America - decrease of 5.8%, for the nine months ended September 30, 2017, is largely attributable to non-renewals within the casualty and accident & health lines, in addition to prior year premium adjustments mainly within casualty. These reductions were partially offset by new business written in 2017.

▪	London - increase of 4.6%, for the nine months ended September 30, 2017, is primarily due to additional new business and increased shares written within the property and casualty lines. In addition, the casualty lines benefited from changes to the renewal dates of some policies. These increases were partially offset by prior year premium adjustments.

▪

EMEA - increase of 3.4%, for the nine months ended September 30, 2017, is primarily due to additional new business written within the property and casualty lines and reinstatement premiums from significant natural catastrophe activity. These favorable components are partially offset by cancellations in the current year, including a non-recurring treaty from the second quarter of 2016 within the casualty auto business.

▪	LAC - increase of 5.1%, for the nine months ended September 30, 2017, is driven by new business within property treaty and credit lines of business, along with increased participations written during 2017, mainly within the property treaty lines of business. These increases have been partially offset by cancellations.

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▪	Net favorable prior year development for the short-tail lines totaled $14.3 million. Details of the significant components are as follows:

▪	For property lines, net prior year development was $8.5 million favorable, primarily due to a release of IBNR on large losses and better than expected development on attritional losses.

▪	For specialty lines, net prior year development was $5.9 million favorable, largely due to better than expected experience on attritional losses and releases on catastrophe and large losses on the marine book.

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•	Net favorable prior year development for the long-tail lines totaled $7.7 million. Details of the significant components are as follows:

•	For casualty lines, net prior year development was $2.9 million favorable, primarily due to a $12.5 million release of IBNR held for the impact of the Ogden rate change in response to emerging claims data on the impacted motor portfolios. This is partially offset by the unfavorable development on large losses.

•	For other lines, net prior year development was $4.8 million favorable, due to release on large losses on the credit and surety book and better than expected experience on attritional losses.

•	Acquisition expense ratio - improvement of 0.4 percentage points is driven by the impact of the reinstatement premiums from significant natural catastrophe activity. Excluding reinstatement premiums and premium adjustments, the ratio has deteriorated due to a change in product mix as a result of a material new inception written in Bermuda during fourth quarter of 2016.

•	Operating expense ratio - improvement of 1.9 percentage points was primarily driven by a reduction to variable compensation costs resulting from the natural catastrophe loss impact on our results.

•	Operating expense ratio - improvement of 1.5 percentage points was attributable to synergies realized due to the Catlin Acquisition and increased operating leverage, as well as a reduction to variable compensation costs resulting from the natural catastrophe loss impact on our results.

•	Acquisition expense ratio - deterioration of 0.9 percentage points predominantly resulting from a change in the product mix mainly as a result of a material new inception written in Bermuda during the fourth quarter of 2016.

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(1)	The performance of investment portfolios is measured on a local currency basis. For the aggregate performance calculation, respective local currency balances are translated to U.S. dollars using quarter end rates to calculate composite portfolio results.

(2)	Performance on these portfolios is included in the Total Return on Investments above.

(3)	Performance on the hedge fund portfolio reflects the three and nine months ended August 31, 2017 and August 31, 2016, respectively, for both equity and non-equity accounted hedge funds.

(1)	For a summary of realized and unrealized losses on all derivative instruments, see Item 1, Note 5, "Derivative Instruments," to the Unaudited Consolidated Financial Statements included herein.

*	N/M - Not Meaningful

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(1)	Interest expense includes costs related to our debt and collateral facilities and does not include deposit liability accretion, which is included in Net investment results - structured products.

*	N/M - Not Meaningful

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(1)	Carrying value represents the fair value of AFS fixed maturities.

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(1)

The credit rating for each asset reflected above was principally determined based on the weighted average rating of the individual securities from Standard & Poor's, Moody's Investors Service and Fitch Ratings (when available). U.S. Agency debt and related mortgage-backed securities, whether with implicit or explicit government support, reflect the credit quality rating of the U.S. government for the purpose of these calculations.

•	gross unrealized losses of $82.9 million related to Government holdings. Securities in a gross unrealized loss position had a fair value of $5.3 billion at September 30, 2017.

•	gross unrealized losses of $53.3 million related to Corporate holdings. Securities in a gross unrealized loss position had a fair value of $2.4 billion at September 30, 2017.

•	gross unrealized losses of $22.4 million related to RMBS securities. Securities in an unrealized loss position had a fair value of $2.5 billion at September 30, 2017.

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(1)	Cash equivalents balances subject to fair value measurements include certificates of deposit and money market funds.

(2)

Excluded from Other investments balances are $194.7 million at September 30, 2017 measured using Net Asset Value. Based on new accounting guidance, these investments are excluded from the fair value hierarchy table. In addition, the Other investments balance excludes certain structured transactions including certain investments in project finance transactions and a payment obligation that are carried at amortized cost, which totaled $172.5 million at September 30, 2017. For further information, see Item 8, Note 6, "Other Investments," to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016

(3)	Other assets include derivative instruments, reported on a gross basis.

(4)	Other liabilities include derivative instruments, reported on a gross basis.

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•	debt;

•	XLIT and Catlin-Bermuda preference shares;

•	letter of credit facilities and other sources of collateral; and

•	revolving credit facilities.

▪	sufficient capital to maintain our financial strength and credit ratings, as issued by several rating agencies, at levels considered necessary by management to enable our key operating subsidiaries to compete;

▪	sufficient capital to enable our regulated subsidiaries to meet the regulatory capital levels required in the United States, the U.K., Bermuda, Ireland, Switzerland and other key markets;

▪	letters of credit and other forms of collateral that are required to be posted or deposited, as the case may be, by our operating subsidiaries that are "non-admitted" under U.S. state insurance regulations in order for the U.S. cedant to receive statutory credit for reinsurance. We also use letters of credit to support our operations at Lloyd's; and

▪	revolving credit facilities to meet short-term liquidity needs.

▪	the credit available from banks may be reduced due to market conditions resulting in our need to pledge our investment portfolio to customers, which could result in a lower investment yield;

▪	we may be downgraded by one or more rating agencies, which could materially and negatively impact our business, financial condition, results of operations and/or liquidity; and

▪	the volume of business that our subsidiaries that are not admitted in the United States are able to transact could be reduced if we are unable to obtain letter of credit facilities at an appropriate amount.

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(1)

Excluded from the table are certain credit facilities under which the Company was permitted to utilize up to $750.0 million at September 30, 2017 and $1.0 billion at December 31, 2016, for revolving loans to support general operating and financing needs. At September 30, 2017 and December 31, 2016, $2 million and $245 million, respectively, were utilized under these facilities to issue letters of credit, leaving $748.0 million and $755.0 million, respectively, available to support other operating and financing needs.

(2)	"In Use/Outstanding" data represent September 30, 2017 accreted values.

(3)	"Payments Due by Period" data represents ultimate redemption values.

▪	$300 million senior notes due December 2018, with a fixed coupon of 2.30%. The notes are listed on the New York Stock Exchange ("NYSE") and are guaranteed by XL Group. The notes were issued at 99.69% of the face amount and net proceeds were $296.6 million. Related expenses of the offering amounted to $2.5 million.

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▪	$400 million senior notes due October 2021, with a fixed coupon of 5.75%. The notes are listed on the NYSE and are guaranteed by XL Group. The notes were issued at 100.0% of the face amount and net proceeds were $395.7 million. Related expenses of the offering amounted to $4.3 million.

▪	$350 million senior notes due November 2024, with a fixed coupon of 6.375%. The notes are publicly traded. The notes were issued at 100.0% of the face amount and net proceeds were $347.8 million. Related expenses of the offering amounted to $2.2 million.

▪	$500 million subordinated notes due March 2025, with a fixed coupon of 4.45%. The notes are listed on the NYSE and are guaranteed by XL Group. The notes were issued at 99.633% of the face amount and net proceeds were $492.2 million. Related expenses of the offering amounted to $5.9 million.

▪	$325 million senior notes due May 2027, with a fixed coupon of 6.25%. The notes are publicly traded. The notes were issued at 99.805% of the face amount and net proceeds were $321.9 million. Related expenses of the offering amounted to $2.5 million.

▪	$300 million senior notes due December 2043, with a fixed coupon of 5.25%. The notes are listed on the NYSE and are guaranteed by XL Group. The notes were issued at 99.77% of the face amount and net proceeds were $296.0 million. Related expenses of the offering amounted to $3.3 million.

▪	$500 million subordinated notes due March 2045, with a fixed coupon of 5.5%. The notes are listed on the NYSE and are guaranteed by XL Group. The notes were issued at 99.115% of the face amount and net proceeds were $488.4 million. Related expenses of the offering amounted to $7.2 million.

▪

€500 million ($587.2 million) subordinated notes due June 2047, with a fixed coupon of 3.25% for a period of 10 years, then a floating rate of three-month EURIBOR plus 2.90%. The notes are listed on the NYSE and are guaranteed by XL Group. The notes were issued at 99.054% of the face amount and net proceeds were $558.3 million. Related expenses of the offering amounted to approximately $10.5 million.

(1)	We have the option to increase the size of the Syndicated Secured and Unsecured Facilities by an aggregate of $500 million.

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(1)	Government-guaranteed securities and Covered Bonds have been excluded from the above figures.

(2)	Excludes short-term investments and accrued investment income.

(1)	Includes Covered Bonds.

(2)	Excludes short-term investments and accrued investment income.

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(1)	The estimated impact on the fair value of our fixed income portfolio of an immediate hypothetical +100 bps adverse parallel shift in global bond curves.

(2)

The estimated impact on the fair value of our investment portfolio of an immediate hypothetical -10% change in the value of equity exposures in our equity portfolio, certain equity-sensitive hedge fund investments and private equity investments. This includes our estimate of equity risk embedded in the hedge fund and private investment fund portfolios with such estimates utilizing market exposures provided to us by certain individual fund investments, internal statistical analyses, and/or various assumptions regarding illiquidity and concentrations.

(3)	The estimated impact on the fair value of our fixed income portfolio of an immediate hypothetical +100 basis point increase in all global government related, corporate and structured security spreads to which our fixed income portfolio is exposed. This excludes exposure to credit spreads in our hedge fund, private investment funds and counterparty exposure.

(4)	The estimated impact on the fair value of our fixed income portfolio of an immediate hypothetical +10% increase in all global government related, corporate and structured security spreads to which our fixed income portfolio is exposed. This excludes exposure to credit spreads in our hedge fund, private investment funds and counterparty exposure.

(5)	The VaR results are based on a 95% confidence interval, with a one-year holding period, excluding foreign exchange rate risk. Our investment portfolio VaR at September 30, 2017 is not necessarily indicative of future VaR levels as these are based on statistical estimates of possible price changes and, therefore, exclude other sources of investment return such as coupon and dividend income.

(6)

The VaR results are the standalone VaRs, based on the prescribed methodology, for each component of our Total Investment Portfolio. The standalone VaRs of the individual components are non-additive, with the difference between the summation of the individual component VaRs and their respective aggregations being due to diversification benefits across the individual components. In the case of the VaR results for our Total Investment Portfolio, the results also include the impact associated with our Business and Other investments.

(7)	Our Total Investment Portfolio also includes our Business and Other investments that do not form part of our Fixed Income Portfolio or Non-Fixed Income Portfolio. The individual results reported in the above table for our Total Investment Portfolio therefore represent the aggregate impact on our Fixed Income Portfolio, Non-Fixed Income Portfolio and the majority of our Other investments.

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(1)

Shares purchased in connection with the vesting of restricted shares granted under our restricted stock plan do not represent shares purchased as part of publicly announced plans or programs. Any such purchases would be made in connection with satisfying tax withholding obligations of those employees. The Company did not purchase any shares for this purpose during the three months ended September 30, 2017.

(2)	For information regarding our share buyback activity see Part I, Item 1, Note 13, "Share Capital," to the Unaudited Consolidated Financial Statements included herein.

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*	Filed herewith.

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