AXA has agreed to acquire Bermuda-based property and casualty (P&C) company XL Group in a deal worth $15.3 billion.
The merger agreement has been unanimously approved by the boards of both AXA and XL Group, with the total value of the deal representing a premium of 33 percent to XL Group closing share price on 2 March 2018.
The combined entity now holds the number one global position in P&C lines with combined 2016 revenues of approximately €30 billion and total P&C revenues of approximately €48 billion.
Upon completion of the agreement, Greg Hendrick, currently president and COO of XL Group, will be appointed CEO of the combined entity and join AXA Group’s management committee, reporting to AXA CEO Thomas Buberl.
Hendrick will lead the combined operations of XL Group, AXA Corporate Solutions and AXA Art upon the transaction’s completion.
XL Group’s current CEO, Mike McGavick, will become vice chairman of the combined P&C commercial lines operation and special adviser to Buberl.
The competition of the deal, which is subject to approval by XL Group shareholders and other closing conditions, is expected to take place during H2 2018.
Buberl commented: “This transaction is a unique strategic opportunity for AXA to shift its business profile from predominantly life and savings 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.”
He added: “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.”
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.”
