AXA To Acquire XL Group For $15.3 Billion

March 5, 2018 | 13 Comments

[Updated] AXA announced today that it has entered into an agreement to acquire 100% of XL Group Ltd, with the French company confirming that the total consideration for the acquisition amounts to $15.3 billion.

Shareholders in XL will receive $57.60 a share, which represents a 33% premium to the company’s closing price on March 2, AXA said.

AXA CEO Thomas Buberl 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 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.

“XL Group has the right geographical footprint, world-class teams with recognized 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.”

XL Group CEO Mike McGavick said, “Today marks an unrivalled opportunity to accelerate our strategy with a new strength and dimension. 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.”

Upon completion of the transaction, the combined operations of XL Group, AXA Corporate Solutions and AXA Art will be led by Greg Hendrick, currently the President and Chief Operating Office of XL Group, who will be appointed CEO of the combined entity and join AXA Group’s management committee, reporting to Thomas Buberl.

Greg Hendrick will work closely with Doina Palici-Chehab, AXA Corporate Solutions’ Executive Chairwoman, and Rob Brown, AXA Corporate Solutions’ CEO, to build an integrated organization and leadership team for this new company.

Following the closing, Mike McGavick, XL Group’s current CEO, will become Vice Chairman of the combined P&C Commercial lines operations and special adviser to Thomas Buberl, AXA Group CEO, to advise on integration-related and other strategic matters.

The merger agreement has been unanimously approved by the boards of AXA and XL Group.  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.

Update 5.49pm: BDA CEO Ross Webber said, “The AXA-XL Group deal continues to show how attractive the Bermuda market and its companies are. Bermuda has yet again proven itself to be a domicile where companies can grow from the seeds of necessity-driven innovation in the mid-’80s to highly desirable multi-billion-dollar targets more than 30 years later.

“Larger, stronger companies—in this case creating one of the world’s largest P&C carriers—are beneficial for both the market and the industry. We continue to see new companies launching in Bermuda, and we expect this to continue.”

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  1. Money dont grow on trees, thank you PLP for listening to the PEOPLE and giving seniors an increase and workers an increase.
    The other administration had 5 years and took,took,took, CEO’s, stakeholders and shareholders are doing quite good (especially de BTA crew), but us common folk are gotta fight tooth and nail to get a dollar increase.

    • Jared says:

      You know nothing about finance

      • Maybe so, but I hate it when when people get pissed on and told that its raining.

        • Zevon says:

          There’s bus cancellations every day yet your lot have brand new cars. One rule for them, another rule for us.

        • Johnnnny says:

          Give one solid example with facts.

        • shrew says:

          that’s all the PLP do all day long mate! they have peed all over us and told us it’s raining.

    • The real Terry says:

      Onion Juice you are too funny. You and your PLP had to hire 5 extra people just to give half the service the OBA provided in garbage collection. These are facts, you may lie and spin it anyway you want it will not change the truth.

      • Ya but no one is complaining that their trash is not being picked up. But when PLP get the new trucks (which OBA neglected to get like de buses to force privatization but paid for Billionaires to have a sailboat race), we will have sufficient trucks to have regular pick ups twice a week.
        Not so funny now is it?

        • The real Terry says:

          AS I said still cannot change the truth no matter how you spin it or lie.

    • The Original Truth™ says:

      Both administrations have taken more from Bermuda then they gave back. Both PLP and OBA have been more about foreign investment than local. This is what happens when governments have grandiose delusions and have the party cheerleaders along for the ride.

      PLP offset the menial guest worker populations with the white IB guest worker population in 2007. They canceled many IB worker permits while approving much more unskilled guest worker permits in the THOUSANDS. That year the Bermudian headquartered XL group’s stocks crashed hard down below $3 a share from $84 a share. From that time until this year it has been a roller coaster for this company and any shareholder of XL group was not doing, “quite good”. They had to get bought out by a French company in order to progress. This means another Bermudian company lost. There’s no guarantee now that AXA will keep the company on the island.

      This Bermudian company since the 1980s XL has clawed its way back with little support from the government. PLP could have helped this company come back but they’d didn’t. If they thought that IB business was not doing enough for Bermudians they could have helped them do more. They could have helped both by setting up RRSP fund accounts with Bermudian banks where Bermudians could be provided the tools and advisory to invest in Bermuda with a portion of their earnings go there instead of government pension which is not making any gains at all to Bermudian based companies on the exchange like XL. If every Bermudian had invested at least $1000 of their yearly pension into an RRSP holding XL stocks in 2008 at the affordable price of $3 they’d have around 333 shares which would have gained them over 18 grand upon this buyout and if they’d invested yearly far more. Any Bermudian can invest in the BSX but the PLP isn’t and never did encourage it. Other countries governments have RRSP funds for their citizens to invest locally but PLP instead wanted to invest our pension savings overseas.

      The PLP has done nothing but encourages nonlocal investments through allowing more foreign workers in from Countries where they encourage remittances from Bermuda back to their country and kicked out all the specialist workers that could help Bermuda succeed.

    • shrew says:

      I guess the Regressive LP will use some of the PROFITs made from AC to buy the new trucks, hire even more Civil Servants to prop up their votes… in any other civilized country people would actually realize what the Regressive LP relly stands for… and that is spend spend spend… where do you think increase in pensions are coming from? thin air?

  2. Clarity says:

    Any word on the future of all of what were originally Catlin, then XL-Catlin, environmental programmes in the Arctic and coral reefs?

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