AXA to acquire XL Group for US$15bn

March 6 2018 by InsuranceAsia News Staff

AXA has reportedly agreed to acquire rival XL Group for about US$15 billion, in a deal that will create a global property and casualty giant.

AXA chief executive Thomas Buberl said the transaction is a unique strategic opportunity for AXA to shift its business profile from predominantly life and savings business to also include property and casualty business.

The acquisition will enable AXA to become the leading property and casualty commercial lines insurer based on gross written premiums. AXA expects the XL takeover to be cash accretive and to result in cost synergies of around US$400 million per year.

Bermuda-headquartered XL’s share value has increased by 23% this year giving it a valuation of US$11 billion, while AXA has a market valuation of US$75 billion, meaning a deal on current valuations between the two would create an US$86 billion player.