August 31, 2018
Contact: Richard Loconte, 212-709-1691
DFS APPROVES AXA SA'S ACQUISITION OF XL INSURANCE COMPANY, INC. AND XL REINSURANCE AMERICA, INC.
Financial Services Superintendent Maria T. Vullo today announced that the Department of Financial Services (DFS) has approved an application by AXA Group, including AXA SA, a publicly traded French société anonyme, and French mutual insurance companies AXA Assurance IARD Mutuelle and AXA Assurances Vie Mutuelle (together, AXA), to acquire XL Insurance Company of New York, Inc. (XLICNY) and XL Reinsurance America, Inc. (XLRA).
“DFS has approved this acquisition as satisfying the requirements of the Insurance Law," Superintendent Vullo said. “This acquisition further demonstrates the strength of New York's insurance market and the commitment that significant companies have to New York's robust market and strong regulation."
At the end of 2016, the AXA Group of companies was the world’s largest insurance group, and based on its 2017 annual report, had total assets of 870 billion euros and gross revenues of 98.5 billion euros. In May, AXA Equitable Holdings, which encompasses AXA’s American operations, raised $2.75 billion in an IPO.
The New York XL companies that will be acquired provide significant reinsurance capacity in the U.S. insurance market. Based on their 2017 annual reports, XLICNY and XLRA combined have total assets of $6.2 billion and $981.3 million in gross revenues. Each is a New York domestic stock property and casualty insurance company, which requires the DFS Superintendent’s approval for their proposed change of control.
While AXA is acquiring the XL companies by means of a merger, they will be maintained within a new division within AXA. AXA intends to preserve the XL assets and maintain the current XL business model such that there will be no significant changes to the XL companies’ U.S. business.
To ensure that XLICNY and XLRA policyholders are fully protected, AXA has given DFS assurances regarding their plans of operation as well as ongoing DFS supervision. Approval is subject to other regulatory approvals and closing conditions.