XL confirms negotiations to acquire Catlin
Following speculation in the past 24 hours that Catlin is in discussions with a potential buyer, XL Group has confirmed that it is in negotiations with the re/insurer.
The company said it was engaged in preliminary discussions with Catlin regarding a potential transaction to acquire the company and form a combined entity. Mike McGavick, XL’s chief executive, said he believed the companies would be stronger together.
“Both XL and Catlin – respected, innovative, global P&C firms – are well positioned on their own. However, we both believe that we will be far better positioned and stronger together. We see this transaction as deeply accelerating the strategies of both companies,” McGavick said.
“Specifically, the combined entity would be a leader in the global specialty and property cat markets and would make greater and more efficient use of both companies’ global networks and infrastructure. As Catlin is the leading presence at Lloyd’s, the combination would immediately expand many of the lines of business in which XL has recently invested.
“In the increasingly competitive reinsurance market, the combined company would be a top 10 player, thereby increasing alternative capital opportunities and overall relevance to clients and brokers. The proposed transaction is expected to result in attractive economics starting in the first year and long-term value for shareholders.
“For these reasons, and crucially, for the deep cultural and strategic alignment we see between XL and Catlin, with both built on disciplined underwriting, we see meaningful opportunity in this transaction.”
The company also stressed that any deal would require approval by the boards of directors of each company and would be subject to various shareholder and regulatory approvals and completion of diligence.
