Axa unveils $15bn deal to buy Bermuda’s XL

Insurance giant Axa is to splash out $15.3 billion (£11bn) on acquiring Bermuda-based XL Group, which specialises in property and casualty claims.

The combination will create the biggest property and casualty commercial lines insurer based on gross written premiums, with total revenues of €48bn (£42.8bn), Axa said.

XL has a strong presence in the US, Europe, Lloyd’s and Asia-pacific, and generated $15bn of gross written premiums last year.

Axa chief executive Thomas Buberl said: “This transaction is a unique strategic opportunity for Axa to shift its business profile from predominantly life and savings business to predominantly 0 ‘Unique opportunity’: Axa chief executive Thomas Buberl property and casualty business.” Under the terms of the deal, XL Group shareholders will receive $57.60 (£41.70) per share, a premium of 33 per cent to its closing share price on 2 March. Axa will fund the deal through €3.5bn in cash, €6bn from a planned US stock market listing of its life and annuity arm, and €3bn of debt.