AXA has announced this week that it has entered into an agreement to acquire 100 per cent of XL Group, a leading global Property & Casualty commercial lines insurer and reinsurer with 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. Total consideration for the acquisition would amount to USD 15.3 billion (or Euro 12.4 billion), to be fully paid in cash. Under the terms of the transaction, XL Group shareholders will receive USD 57.60 per share. This represents a premium of 33 per cent to XL Group closing share price on March 2, 2018.
AXA CEO, Thomas Bubrel said, “This transaction is a unique strategic opportunity for AXA to shift its business profile from predominantly L&S business to predominantly P&C business, and will enable the Group to become the #1 global P&C Commercial lines insurer based on gross written premiums.
“The future AXA will see its profile significantly rebalanced towards insurance risks and away from financial risks.”
XL Group CEO, Mike McGavick said, “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.
“We are excited at the opportunity to build the scale, geographical footprint, product portfolio, and the unmatched commitment to innovation that relevance in the global insurance industry requires. In AXA we have found like-minded partners committed to the absolute necessity to innovate and move this industry forward.”