AXA to acquire XL Group: Creating the #1 global P&C commercial lines insurance platform

Hamilton, Bermuda – March 5, 2018 – In a filing with the Bermuda Stock Exchange, XL Group Ltd (Ticker: XL.BH) announced that AXA has entered into an agreement to acquire 100% of XL Group.  The filing stated:

•              A major leap forward in AXA’s strategic journey

•              Creating the leading global P&C Commercial lines player across all lines

•              Strong complementarities expected to fuel future earnings growth and value creation

•              Effective use of proceeds from the planned US IPO and intended subsequent sell-downs1, at an attractive return

•              Ambition 2020 targets reaffirmed

AXA announced today that it has entered into an agreement to acquire 100% of XL Group Ltd (NYSE: XL), a leading global Property & Casualty commercial lines insurer and reinsurer with strong presence in North America, Europe, Lloyd’s and Asia-Pacific. The merger agreement has been unanimously approved by the boards of AXA and XL Group. Total consideration for the acquisition would amount to USD 15.3 billion (or Euro 12.4 billion2), to be fully paid in cash. Under the terms of the transaction, XL Group shareholders will receive USD 57.60 per share3. This represents a premium of 33% to XL Group closing share price on March 2, 2018.

“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”, said Thomas Buberl, Chief Executive Officer of AXA.

“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”, said Mike McGavick, Chief Executive Officer of XL Group.

The full press release can be found by using the following link:

http://xlcatlin.com/insurance/news/axa-to-acquire-xl-group