AXA has agreed to buy Bermuda-based XL Group for $15.3 billion (€12.4 billion), a deal that will create the biggest global property and casualty (P&C) commercial insurer in the world.
The insurers’ combined P&C commercial lines operations will have a strong position in the large and upper mid-market space, including in specialty lines and reinsurance, and will complement and further enhance AXA’s presence in the small- and medium-sized enterprise segment.
“The two companies share a common culture around people, risk management and innovation, positioning AXA uniquely for the evolving future of the P&C industry,” according to an AXA statement.
Thomas Buberl, CEO of AXA, described the acquisition as a “unique strategic opportunity” to shift AXA’s focus from life and savings to P&C business.
The deal will enable AXA to become the top global P&C commercial lines insurer based on gross written premiums, according to Buberl.
Mike McGavick, CEO of XL Group, added: “Today marks an unrivalled opportunity to accelerate our strategy with a new strength and dimension. With every confidence in how we have positioned XL Group for the future, it is a substantial testament to AXA’s leadership and commitment to maintaining the XL Group brand and culture that we have come to an alignment.”
“We are excited at the opportunity to build the scale, geographical footprint, product portfolio, and the unmatched commitment to innovation that relevance in the global insurance industry requires. In AXA we have found like-minded partners committed to the absolute necessity to innovate and move this industry forward.”
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