French multinational insurance company Axa announced its latest effort to expand its presence through its plan of a complete acquisition of Hamilton, Bermuda-based rival insurer XL Group, the two companies confirmed.
Axa said the deal would make the “leading global property and casualty (P&C) commercial line player across all lines (of business).”
The deal would also hand $57.60 per share to XL Group shareholders, the terms of proposed transactions showed. That represents a premium of 33 percent to XL Group closing share price on 2 March.
“XL Group has the right geographical footprint, world-class teams with recognized expertise and is renowned for innovative client solutions,” Axa Chief Executive, Thomas Buberl, said.
“Our combined P&C commercial lines operations will have a strong position in the large and upper mid-market space, including in specialty lines and reinsurance, and will complement and further enhance Axa’s already strong presence in the SME segment. The two companies share common culture around people, risk management, and innovation, positioning AXA uniquely for the evolving future of the P&C industry,” he said.
On one hand, XL’s Chief Executive, Mike McGavick, said,”Today marks an unrivaled opportunity to accelerate our strategy with a new strength and dimension.”
“With every confidence in how we have positioned XL Group for the future, it is a substantial testament to Axa’s leadership and commitment to maintaining the XL Group brand and culture that we have come to an alignment,” McGavick added.
A little less than three years ago XL Group has made its own acquisition of a London market specialty re/insurer, Catlin, building a post-merger XL Catlin subsidiary.
Meanwhile, the Axa-XL deal is expected to be completed in the second half of 2018, pending shareholder and regulatory approvals.
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