XL Group Ltd., the global insurance giant whose executive offices are in Stamford, is being acquired by French multinational insurance firm AXA for $15.3 billion.
Under the terms of the deal, XL Group shareholders will receive $57.60 per share. The transaction is expected to be completed during the second half of this year, subject to customary closing conditions, including the receipt of required regulatory approvals.
“In AXA we have found a like-minded partner committed to innovation and moving our industry forward,” said Mike McGavick, CEO of XL Group, which is headquartered in Bermuda. “Becoming a part of AXA provides unrivalled opportunity to accelerate our strategy with new strength and dimension.”
Upon completion of the transaction, the combined operations of XL Group, AXA Corporate Solutions – AXA’s large commercial property and casualty (P&C) and specialty business – and AXA Art will be led by Greg Hendrick, currently president and chief operating officer of XL Group. Hendrick will be appointed CEO of the combined entity and join AXA Group’s management committee, reporting to AXA Group CEO Thomas Buberl.
McGavick will become vice chairman of the combined P&C commercial lines operations and special adviser to Buberl.
XL Group provides a premier specialty platform complementing and diversifying AXA’s existing commercial lines insurance portfolio, as well as reinsurance capabilities that will allow AXA access to enhanced diversification and alternative capital.
Earlier this year, XL Group subsidiary XL Catlin renewed its naming rights for downtown Hartford’s XL Center for at least five more years.