XL Capital Seen As Possible Acquisition Target
One of Bermuda’s biggest reinsurance companies has takeover rumours swirling around it, as investors and analysts said today [Apr 13] that XL Capital may be an acquisition target as weak prices in the business fuel more deals.
One of the main names being put forward as a possible acquirer is Germany’s Munich Re, one of the world’s largest reinsurers, which is said to be looking to expand more in the United States and put excess capital to work.
In December 2008, after reporting large investment losses in 2008, XL was rumoured to be looking for a buyer. However, under the able leadership of Mike McGavick, XL bounced back.
XL shares rose 3.5% to $19.88 on afternoon trading today. Today’s closing level of XL is the highest the shares have been since before the well documented collapse of Lehman Brothers in September 2008.
The company has not announced an official earnings date yet, but is likely to release results before the end of April.
