AXA to Complete Acquisition of XL Group Sept. 12
AXA announced today that it has obtained all regulatory approvals required to complete the proposed acquisition of XL Group Ltd. previously announced on March 5, 2018.
The Paris-based global insurer said it expects to close on the acquisition of XL Group on Sept. 12.
On June 6 XL Group’s shareholders approved the agreement for AXA to acquire 100 percent of XL Group.
AXA has secured financing for the 12.4 billion euros ($14.9 billion) acquisition and is not dependent on the issuance of any additional debt.
XL Group provides both a specialty platform that will diversify AXA’s existing commercial lines insurance portfolio, as well as reinsurance capabilities that will allow AXA an access to alternative capital.
As previously announced, the two insurers have chosen the name of the division that will be formed as a result of the acquisition, a division that will be dedicated to large property/casualty commercial lines and specialty risks. Called AXA XL, the new division of AXA Group will combine XL Group operations, AXA Corporate Solutions and AXA Art and will operate under the master brand of AXA.
The new AXA XL’s offerings will be identified along three main lines:
- XL Insurance will comprise XL Group’s insurance business and AXA Corporate Solutions. It also will include XL Art & Lifestyle, the combination of XL Group’s Fine Art and Specie business, and AXA Art offerings;
- XL Reinsurance will incorporate XL Group’s reinsurance business;
- XL Risk Consulting will incorporate AXA Matrix and XL Group’s Property Risk Engineering GAPS.
In addition, XL Group’s primary Lloyd’s syndicate will continue to be known as XL Catlin Syndicate 2003.
Greg Hendrick, currently the president and chief operating officer of XL Group, will be CEO of the new AXA XL combined entity and join AXA Group’s management committee. Hendrick will report to AXA Group Chief Executive Officer Thomas Buberl.
XL Group’s Chief Executive Officer Mike McGavick will become vice chairman of AXA XL and special adviser to Buberl to advise on integration-related and other strategic matters.
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