AXA to acquire XL Group

AXA has entered into an agreement to acquire 100 percent of XL Group Ltd. The merger agreement has been unanimously approved by the boards of AXA and XL Group, stated a press release. Total consideration for the acquisition would amount to USD15.3 billion (or EUR12.4 billion), to be fully paid in cash. Under the terms of the transaction, XL Group shareholders will receive USD57.60 per share.

“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 number one global P&C Commercial lines insurer based on gross written premiums. The transaction offers significant long-term value creation for our stakeholders with increased risk diversification, higher cash remittance potential and reinforced growth prospects. The future AXA will see its profile significantly rebalanced towards insurance risks and away from financial risks,” stated Thomas Buberl, CEO of AXA.

“XL Group has the right geographical footprint, world-class teams with recognised expertise and is renowned for innovative client solutions. 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 a common culture around people, risk management and innovation, positioning AXA uniquely for the evolving future of the P&C industry.”

Completion of the transaction is subject to approval by XL Group shareholders and other customary closing conditions, including the receipt of required regulatory approvals, and is expected to take place during the second half of 2018.