XL Group Completes Acquisition Of Catlin Group
XL Group plc has completed the acquisition of Catlin Group Limited following the parties’ previously announced entry into an agreement on January 9, 2015 to acquire all of the capital stock of Catlin to form a combined business
. The closing of the transaction follows the receipt of all necessary regulatory approvals, Catlin shareholder approval, and sanctioning of the scheme of arrangement by the Supreme Court of Bermuda.
Commenting on the announcement, XL CEO Mike McGavick said: “After nearly two years of discussions, and several months of intense planning, we are extremely pleased to officially be one company.
“Starting today, we are a larger, stronger, more capable firm, with a leading presence in the global specialty insurance and reinsurance markets. Most importantly, with our combined talent and expertise we are now in an incredible position to better assist clients in solving the world’s most complex risks.”
Starting Monday, May 4 the combined company will be marketed as XL Catlin and a global advertising campaign and new public website will be launched in time with the market introduction of the new XL Catlin name and brand on May 5, 2015. The name of the parent company will remain XL Group plc.
As previously announced, Mike McGavick will continue as CEO, and Stephen Catlin, founder and CEO of Catlin Group Limited, has joined XL as Executive Deputy Chairman, also serving on the Company’s Board of Directors.
Mr. Catlin added: “After 30 years as CEO of Catlin, I’m excited to be taking this next step with XL. Without doubt, today is an exciting day for our new company, XL Catlin. With greater scale, capacity and an expanded platform of products and services, we look forward to creating increased value for our shareholders, clients, brokers, employees and partners.”
Other previously announced senior leadership roles include the following business leaders: Greg Hendrick, previously Chief Executive of Insurance Operations at XL, is now Chief Executive of Reinsurance. Paul Brand, formerly Chief Underwriting Officer of Catlin, is Chief Underwriting Officer for Insurance and serves as Chair of the Insurance Leadership Team. And Kelly Lyles, previously XL’s head of Professional Lines is now Chief Regional Officer, Insurance and Deputy Chair of the Insurance Leadership Team.
Obviously this is good news for the new company, but one wonders whether it is good news for Bermuda? Not surprisingly, there is no mention of any jobs losses or amalgamation of office space. It is anticipated that the M&A activity is going to cost between 200 to 300 jobs. If the average salary is $100K ( and it probably higher than that) you can see the impact this will have on the community. IMO it is vital that we go full steam ahead and try to diversify the Island’s economic base.