Please find below the announcement that XL Group have released in relation to this acquisition.
January 9, 2015
Dear Valued Partner,
Today, we are delighted to announce that XL Group plc and Catlin Group Limited have agreed to combine to create a larger, stronger, more diverse company with a leading presence in the global property & casualty insurance and reinsurance markets. Under the terms of the transaction, XL will acquire all outstanding shares of Catlin for approximately $4.1 billion. We expect the transaction to complete in mid-2015, after all customary regulatory approvals and anti-trust clearances and customary closing conditions. While the parent company will remain XL Group plc, the newly combined company will be marketed as XL Catlin to best reflect the well-earned and respected reputation and strength of both brands.
You can read more in the announcements issued in the media. I also wanted to reach-out and express our excitement at the prospect of being able to serve your business from an even better position. We believe clients and brokers of both XL and Catlin will benefit significantly from this compelling strategic transaction.
The transaction deeply accelerates our strategy, and together XL and Catlin will have greater scale and capacity with an expanded platform of products and services. Importantly, the transaction will immediately and significantly grow XL’s Lloyd’s platform where Catlin is the largest Lloyd’s syndicate, and bolster Catlin’s network by leveraging XL’s well-established international footprint.
As we also announced today, I will continue as CEO and we expect that at the close of the transaction Stephen Catlin will join the combined company as Executive Deputy Chairman and serve on its Board of Directors. We will benefit enormously from Stephen’s input in all strategic decisions and through our ability to leverage his vast market network as we implement the strategy of the new consolidated company.
Greg Hendrick, having returned XL’s Insurance operations to profitability over the last years as its Chief Executive, will be Chief Executive of Reinsurance at the close of the transaction. Now that Jamie Veghte’s retirement as Chief Executive of our Reinsurance Segment is official, until the transaction is closed, John Welch, head of XL’s North America Reinsurance business, will oversee our Reinsurance operations.
In Insurance, we intend for Paul Brand, Catlin’s Chief Underwriting Officer, to be Chair Insurance Leadership Team and Chief Underwriting Officer Insurance. Additionally, we are excited to announce that Kelly Lyles, currently XL’s Head of Professional Insurance, is expected to assume the position of Deputy Chair Insurance Leadership Team and Chief Regional Officer, Insurance. Both Paul and Kelly will report to me and together they will lead all aspects of insurance for XL Catlin.
Let me emphasize that our announcement today is the first step in a long process. Until the transaction closes, it is business as usual, and both XL and Catlin will continue to operate as two separate companies.
We are incredibly excited about what the future holds for us and for our continued work with you and we will keep you informed as we move toward completing this transaction. Serving your business effectively remains our highest priority, and should you have any questions, please do not hesitate to reach out to us.
Thank you for your ongoing support of XL.
CEO, XL Group plc