AXA’s planned $15.3bn acquisition of XL Group has moved one step closer to completion after XL shareholders approved the deal.
“We are pleased with our shareholders’ vote of confidence in supporting all matters, including the AXA transaction,” remarked XL Group CEO Mike McGavick.
“In AXA we have found a like-minded partner committed to innovation and moving our industry forward. Becoming a part of AXA provides unrivalled opportunity to accelerate our strategy with new strength and dimension. Based on today’s vote, it is clear that our shareholders share this same vision and opportunity for XL Group.”
Under the terms of the agreement, XL Group shareholders will receive $57.60 per share, resulting in an aggregate cash consideration of $15.3bn.
AXA said the deal would make it a leading global P&C commercial lines player across all lines, with combined gross written premiums of EUR30.2bn based on 2016 figures.
Following deal completion, the combined operations of XL Group, AXA Corporate Solutions, and AXA Art will be led by incumbent president and COO of XL Group Greg Hendrick who will assume the role of CEO of the combined entity and will join AXA Group’s management committee. Hendrick will report to AXA CEO Thomas Buberl.
In addition, XL Group CEO Mike McGavick will become vice chairman of the combined P&C commercial lines operations and also act as a special advisor to Buberl to advise on integration-related and other strategic matters.
Last month, XL Catlin outlined a number of senior departures and leadership changes as it gears up for its takeover. Among the departures is chief experience officer Paul Jardine, who is expected to leave the company at or shortly after the close of the transaction, along with Susan Cross, XL’s chief actuary, Kirstin Gould, general counsel, and chief human resources officer Eileen Whelley.
The deal is expected to close in the second half of 2018, subject to necessary regulatory approvals.