French insurance and investment giant AXA has announced that it has completed its acquisition of Bermudian property and casualty (P&C) insurance and reinsurance firm XL Group Ltd.
The completion of the transaction follows the fulfilment of all necessary closing conditions, including approval by XL Group shareholders and obtention of all necessary regulatory approvals.
AXA originally announced in March 2018 that it planned to acquire XL Group for $15.3 billion, and later revealed the branding and structure of their future combined operations, to be known as AXA XL.
The company said that, as a premier specialty and large corporate P&C platform, XL Group would complement and diversify its existing commercial lines insurance portfolio and give it access to enhanced diversification and alternative capital through its reinsurance capabilities.
AXA also claimed that the combination of the two companies’ existing positions now makes it the foremost P&C Commercial lines insurer.
Thomas Buberl, Chief Executive Officer (CEO) of AXA, commented on the announcement: “The completion of this transaction marks a significant milestone in our strategic ambition to further improve the balance between technical and financial margin.
“This transaction accelerates our transformation, allowing us to deliver enhanced solutions and services to a greater number of clients, and provides opportunities for significant long-term value creation for our stakeholders, with increased risk diversification, strong underwriting discipline, higher cash remittance potential as well as reinforced growth prospects.”
Buberl continued: “Today, as Greg Hendrick steps up to lead AXA XL as its CEO and joins AXA Group’s management committee, I would like to personally welcome him and all XL Catlin colleagues to the AXA family.
“With the enthusiasm and shared vision of AXA and XL Catlin teams, extensive preparatory work has already been conducted to ensure a smooth integration of our businesses within the AXA Group.”
Greg Hendrick, CEO of AXA XL, also stated: “This announcement marks the culmination of a great deal of work and vision. We have our sights focused on success and together with AXA, our offering is truly compelling: we have the right geographical footprint, expert teams, and a culture that constantly strives for innovation.
“And innovate is what we will continue to do, so that we can be the partner of choice for our clients today and well into the future,” he added.
Following the completion of the acquisition, XL Group’s common shares ceased trading and will be delisted from the New York Stock Exchange and the Bermuda Stock Exchange.