A.M. Best Assigns Rating to XL Group Ltd.’s Series D Preferred Shares

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OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a debt rating of “bb+” to the $350 million Series D preference ordinary shares issued by XL Group Ltd. (Cayman Islands). The assigned outlook is stable.

The shares will pay dividends on a non-cumulative basis at a floating rate of three month LIBOR plus 3.12%. The funds received in connection with the issuance will be used to partially repay existing senior notes issued by XL Capital Finance (Europe) plc (United Kingdom) maturing in January 2012, with the balance available for general corporate purposes. XL Group Ltd.’s debt-to-adjusted capital ratio and rolling three-year fixed charge coverage remains comfortably within the range that is commensurate with the assigned rating.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “A.M. Best’s Ratings & the Treatment of Debt.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

CONTACT:

A.M. Best Co.
Peter Dickey
Assistant Vice President
908-439-2200, ext. 5053
peter.dickey@ambest.com
or
John Andre
Group Vice President
908-439-2200, ext. 5619
john.andre@ambest.com
or
Carole Lovell
Public Relations Associate
908-439-2200, ext. 5445
carole.lovell@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com