AXA acquires XL Group in $15.3bn deal
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