XL deal changes AXA's DNA into that of a P&C player


XL deal changes AXA's DNA into that of a P&C player

AXA CEO Thomas Buberl

AXA’s business mix will fundamentally change once its acquisition of XL Group is completed. Property/casualty (P&C) business will represent half its book of business as it diversifies away from being mainly a life & savings insurer.

AXA is acquiring Bermuda-based property/casualty commercial lines re/insurer XL Group for $15.3 billion (€12.4 billion) in cash.

P&C business represented some 39 percent of AXA’s 2016 pre-tax underlying earnings. After adding the XL Group and excluding AXA US, which is set to be sold, P&C will represent around 50 percent of its pre-tax underlying earnings, according to a March 5 presentation.

The benefits of the move include risk diversification, a reduction of exposure to fluctuations in the financial markets while it also reinforces the group’s growth potential, according to the company.

XL Group, AXA, M&A, P&C, Insurance, Reinsurance, Thomas Buberl, Gregory Hendrick, Mike McGavick, Europe, Bermuda, North America

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