AXA gets green light for XL takeover
French insurer AXA has received all required regulatory approvals for the acquisition of Bermuda-based XL Group.
In March, AXA revealed plans to acquire property/casualty commercial lines re/insurer XL Group for $15.3 billion (€12.4 billion) in cash.
The acquisition is expected to close on September 12, 2018.
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.
In addition to enhancing its global footprint with access to US and London markets, AXA is adding reinsurance operations to its portfolio through this transaction.
The combination of the businesses will generate cost synergies through rationalization, capital synergies, reinsurance synergies and revenue synergies totalling around $0.4 billion pre-tax per year.
Together, AXA and XL Group expect to become the biggest global P&C commercial lines insurer.
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