March 5, 2018 13:30
Photo : Freepik
AXA has announced to have preceded the acquisition of 100 % of the shares of XL Group, a transaction that amounted to $ 15.3 billion. The Group’s shareholders will receive 57,60 $ per share, representing an increase of 33 % compared to the closing price as of the date of 2 march. The completion of the acquisition is expected to take place in the second half of 2018.
AXA indicates that the purchase of the Group fits into its strategy of ambition, which aims to promote the products, allowing for more interactions with the customers, a higher quality of service and a strong technical expertise. AXA expects annual synergies of $ 0.4 billion before tax.
“A strategic opportunity” one
“This transaction is a strategic opportunity, unique that enables AXA to develop its profile of activity of a company mainly present on the life, savings, retirement to an actor whose insurance becomes the main occupation. The risk profile of the future AXA Group will be heavily rebalanced towards insurance risks, with a lower exposure to financial risks, ” says Thomas Buberl, ceo of AXA.
Divestiture of the u.s. activities
This acquisition leads AXA to accelerate its divestiture of its u.s. operations existing. “In conjunction with the ipo ofAXA US and its divestment later contemplated, this transaction would steer AXA to more products underwriting margins, are less sensitive to financial markets “, underlines the insurer.
The operations of the XL Group, AXA Corporate Solutions andAXA Art will be directed by Greg Henrick, president, damage of the Group. The current ceo of XL Group, will become vice-chairman of the board of directors of the new entity dedicated to the risk of damage to the companies and a special advisor to Mr. Buberl.