AXA, a French financial services company, has agreed to acquire New York listed XL Group in a cash transaction of approximately $15.3bn.

The deal, which will create one of the world’s biggest property and casualty insurers, is part of AXA’s strategy to reduce its exposure to financial markets and focus more on insurance.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Commenting on the transaction, AXA CEO Thomas Buberl said: “This transaction is a unique strategic opportunity for AXA to shift its business profile from predominantly L&S business to predominantly P&C business, and will enable the Group to become the #1 global P&C Commercial lines insurer based on gross written premiums.

“The transaction offers significant long-term value creation for our stakeholders with increased risk diversification, higher cash remittance potential and reinforced growth prospects. The future AXA will see its profile significantly rebalanced towards insurance risks and away from financial risks.”

The integrated AXA’s and XL Group will have combined 2016 revenues of about €30bn and total P&C revenues of almost€48bn.

AXA will finance the transaction with €3.5bn of cash at hand, about €6bn from the planned US IPO and related transactions of about €3bn of subordinated debt.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Once the transaction is closed, the combined operations of XL Group, AXA Corporate Solutions (AXA’s large commercial P&C and specialty business) and AXA Art will be headed by Greg Hendrick, currently the president and chief operating officer of XL Group. Hendrick will be appointed CEO of the combined entity and join AXA Group’s management committee, and report to Thomas Buberl.

After completion of transaction, Mike McGavick, XL Group’s current CEO, will become vice- chairman of the combined P&C Commercial lines operations and special adviser to Thomas Buberl, AXA Group CEO.

The transaction, which has been approved by the boards of AXA and XL Group, is pending of receipt of approval by XL Group shareholders and other customary closing conditions. The transaction is scheduled to be completed during the second half of 2018.