AXA is on the verge of completing its $15.3bn acquisition of Bermuda-based insurance and reinsurance company XL Group having secured all regulatory approvals to close the proposed merger.
Image: AXA receives all regulatory approvals to complete merger with XL Group. Photo: courtesy of Kokky92/Wikipedia.org.
The merger will be completed this week after satisfying the remaining customary closing conditions, said the French insurance company.
The merger proposal was announced in March 2018 with the French firm offering to pay XL Group $57.6 per share with an objective to create a global property & casualty (P&C) commercial lines insurance platform.
The Bermudian company offers property, casualty and specialty products. Its clients include industrial, commercial and professional firms, insurance companies and other enterprises across the globe.
The insurance and reinsurance company, which was founded in 1986, registered $15bn of GWP in 2017. It has a workforce of 7,400 across the world and has a footprint across specialty and mid-market segments in both insurance and reinsurance.
XL Group’s combination with the French insurance giant will create a leading player in P&C lines with combined 2016 revenues of around €30bn and total P&C revenues of close to €48bn.
Recently, the two companies disclosed the future branding plans of their combined operations after the completion of their merger. A new division named as AXA XL will be created in the enlarged company, which will focus on large P&C commercial lines and specialty risks.
AXA XL will be managed under the master brand AXA and will be made up of XL Group operations, AXA Corporate Solutions and AXA Art. Its offerings will be further divided into three key lines, namely XL Insurance, XL Reinsurance and XL Risk Consulting.
XL Insurance will comprise the insurance business of XL Group and AXA Corporate Solutions. It will also have XL Art & Lifestyle in its fold, which is the combination of Fine Art and Specie business of XL Group and AXA Art offerings.
XL Reinsurance, on the other hand, will incorporate the reinsurance business of XL Group while XL Risk Consulting will be a merger of AXA Matrix and XL Group’s Property Risk Engineering GAPS.