XL Group agrees to acquire Catlin Group

XL Group agrees to acquire Catlin Group

XL Group agrees to acquire Catlin Group

XL Group,  the insurer based in Ireland founded in 1986, agreed to buy Catlin Group for about £ 2.79 billion, or about $ 4.2 billion.

 Under terms of deal, XL would pay £3.88 in cash and 0.130 shares in the combined company for each Catlin share valued at £7.15.

 Shares of Catlin increased 4.3 percent to £ 6.89 in London trading on Friday. XL’s shares rose up 1.6 percent to $ 35.42 in New York on Thursday price.

 “We are delighted to announce this compelling combination which positions us strongly to provide more – and even better – answers for the world’s most complex risks while enhancing our opportunities to create value for shareholders and better serve clients and brokers,” Mike McGavick, CEO of XL , said in a news release.

“We believe the transaction will accelerate each company’s strategy, and address the meaningful structural changes we see shaping the P&C sector.”

Board of directors of Catlin Group recommend investors approve the transaction with expecting closing transaction in mid 2015.

 Stephen Catlin, CEO of Catlin, will be executive deputy chairman of the combined company.

 “Together, the combined entity will be a market leading global specialty and property catastrophe insurer which will be far better positioned to respond to the changing dynamics that are impacting the broader insurance and reinsurance markets,” Mr. Catlin said in a news release.

Shareholders of Catlin are expected to receive a 2014 final dividend of 22 pence in cash.

 XL advisors were Goldman Sachs, Morgan Stanley and the law firm Skadden, Arps, Slate, Meagher & Flom. Catlin was advised by JPMorgan Chase, Barclays and the law firm Slaughter and May.

 Mr. Stakebay says:

 This deal improve XL property and casualty insurance and reinsurance portfolio and create combined company valued more than $12 billion with more than 6000 employees.

 

CEO of XL Group ……………………..MICHAEL MCGAVIK……2008-present……..$ 10 611 707 (2013)

CEO and Chairman of Catlin Group….STEPHEN CATLIN……..2003-present………$ 5 805 000 (2013)

XL GROUP

CATLIN GROUP

Revenue

US$ 7.541 Billion (2013)

US$ 4.057 Billion (2013)

Operating income

US$ 1.106 Billion (2013)

US$ 432 Million (2013)

Profit

US$ 1.149 Billion (2013)

US$ 392 Million (2013)

Total assets

US$ 45.827 Billion (2013)

US$ 14.594 Billion (2013)

Total Equity

US$ 11.539 Billion (2013)

US$ 3.783 Billion (2013)

Employees

4 000 (2013)

2400 (2013)

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