According to reports in France, mutual insurance group Covéa’s attempt to acquire the reinsurance operations of AXA XL has failed, with sources suggesting that the price proposed was insufficient.
As reported by French publication, L’Argus de l’assurance, Covéa’s search for a reinsurance entity continues after AXA XL Re joins the list of failed attempts, alongside SCOR and PartnerRe.
It was announced in June that the mutual insurer was interested in acquiring Bermuda-based, non-life reinsurer AXA XL Re, a move which would strengthen its standings in the sector and diversify its offering.
At the time, analysts suggested that a sale could be positive for French insurer AXA and raise its valuation by as much as 6%.
Predominantly, AXA XL Re’s business is mostly comprised of renewing reinsurance policies previously underwritten by XL Bermuda Ltd., which AXA acquired in 2018.
L’Argus de l’assurance explains that discussions between the pair, which began a few months ago, have failed. And, according to several corroborating sources, the price proposed by Covéa “would not have been considered sufficiently high by AXA.”