XL Group plc Announces the Reinsurance of the Majority of its U.S. Term Life Business
DUBLIN, Ireland, Dec. 2, 2015 /PRNewswire/ -- XL Group plc ("XL" or the "Company") (NYSE: XL) announced today that its wholly-owned subsidiary, XL Life Ltd., has entered into a definitive agreement to reinsure a block of U.S. Term Life treaties to a subsidiary of Reinsurance Group of America, Incorporated ("RGA") (NYSE: RGA). This transaction includes all U.S. Term Life reinsurance policy reserves and cedes 80% of the remaining life reinsurance premiums that were not included in the Company's 2014 sale of its life reinsurance subsidiary, XL Life Reinsurance (SAC) Ltd. XL announced the run-off of its life reinsurance business in 2009.
"Over the past few years, through a series of strategic steps, we have made XL Catlin a stronger and more disciplined company focused on our core property & casualty operations. This transaction will remove the vast majority of risk associated with our remaining run-off life exposures and we're pleased to make today's announcement as just one more step taken toward delivering and creating increasing value for clients and shareholders," said Mike McGavick, CEO of XL.
At September 30, 2015, XL had total U.S. GAAP policy benefit reserves relating to this block of business of approximately $258 million. The Company expects to record a net GAAP loss of approximately $34 million associated with the transaction.
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
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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," "look" or similar statements of a future or forward-looking nature identify forward-looking statements. Factors that could cause actual results to differ from those predicted are set forth under "Risk Factors" or "Cautionary Note Regarding Forward-Looking Statements" in XL's Annual Report on Form 10-K for the year ended December 31, 2014 and our other documents on file with the SEC. XL undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
SOURCE XL Group plc
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