Deals
French Insurer AXA Agrees to Buy XL Group for $15.3 Billion
- Offer for rival is at about 33% premium from Friday’s close
- Financing to come from cash at hand, U.S. IPO earnings, debt
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Axa SA agreed to buy XL Group Ltd. for $15.3 billion in cash, seeking to capture a bigger slice of the U.S. property and casualty market as premiums rise after last year’s natural disasters.
The French insurer is paying $57.60 per share, according to a statement on Monday. That’s about a 33 percent premium compared with the stock’s closing price of $43.30 on Friday. Bloomberg reported Saturday that Axa was in advanced talks on the deal, citing people familiar with the matter. The acquisition will be the biggest insurance deal since 2015 and the largest-ever European purchase of a U.S. insurer, according to data compiled by Bloomberg.