AXA has received regulatory approvals for the proposed takeover of Bermuda-based property and casualty commercial lines re/insurer XL Group.
The cash deal, valued at around $15.3bn, was first announced in March this year. Under the terms of the transaction, XL Group shareholders will be entitled to receive $57.60 per share.
XL Group deal timeline
In June 2018, XL Group obtained shareholders’ approval for the deal. A month later, the companies revealed that the merged entity will be called AXA XL and will operate under the master brand name AXA.
The merged group, which includes XL Group, AXA Corporate Solutions, and AXA Art, will be headed by Greg Hendrick as CEO. Hendrick currently serves as the president and COO of XL Group.
Post deal completion, XL Group’s existing CEO Mike McGavick will become vice- chairman of the combined P&C Commercial lines business and serve as special adviser to AXA Group CEO Thomas Buberl.
Moreover, the transaction is slated to be wrapped up on 12 September 2018, subject to customary closing conditions.
At the deal of the deal announcement, 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.”
AXA has operations in 62 countries and a workforce of 160,000. The firm managed €1.44bn in assets at the end of December 2017.