Wednesday 26 June 2019

Axa to acquire XL Group for $15bn

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Ellie Donnelly

Ellie Donnelly

French insurer Axa has announced that it is to buy 100pc of XL Group for $15bn (€12.4bn).

XL is a leading global property and casualty commercial lines insurer and reinsurer, which has a strong presence in North America, Europe, Lloyd’s and Asia-Pacific.

The merger agreement has been unanimously approved by the boards of AXA and XL Group, Axa said in a statement today.

Under the terms of the transaction, XL Group shareholders will receive $57.60 per share. This represents a premium of 33pc to XL Group closing share price on March 2, 2018.

Axa has described the transaction as a strategic opportunity for it to shift its business profile from predominantly life insurance to a predominantly property and casualty business.

“The transaction offers significant long-term value creation for our stakeholders with increased risk diversification, higher cash remittance potential and reinforced growth prospects,” Thomas Buberl, chief executive of Axa, said.

“The future AXA will see its profile significantly rebalanced towards insurance risks and away from financial risks.”

In its financial year 2017, XL Group, which has over 7,000 employees worldwide, generated gross written premium of $15bn, and the company has a strong presence across speciality and mid-market segments via insurance and reinsurance.

“In Axa we have found like-minded partners committed to the absolute necessity to innovate and move this industry forward,” Mike McGavick, CEO of XL Group, said.

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