AXIS Capital-Novae deal granted approval

AXIS Capital-Novae deal granted approval | Insurance Business

AXIS Capital-Novae deal granted approval
Finally, the green light.

After months of talks, followed by shareholder approval and subsequent appeals for regulatory approval, the deal which sees AXIS Capital Holdings Limited acquire Novae Group Plc has crossed the finishing line.

AXIS released a statement earlier today announcing that all clearance had been received from the applicable regulators, including the European Commission, and that the deal had been finalised. It creates a US$2 billion insurer in London, as well as a top 10 reinsurer at Lloyd’s. The combined global gross written premium stands at US$6 billion based on 2016 results.

“This is a significant acquisition and an important milestone for AXIS,” commented AXIS president and CEO Albert Benchimol. “Acquiring Novae greatly adds to the scale and breadth of our international business and also underscores our commitment to London and to Lloyd’s, which continues to be the pre-eminent market for specialty risks.

“Novae is known for its market-leading underwriting talent, which we expect will thrive at AXIS. Our goal is to bring out the best in both firms as we become one organisation that is even stronger together.”

As part of the move, Novae CEO Matthew Fosh will become executive chair at AXIS Capital in Europe and Novae will adopt the AXIS brand as its insurance business will be merged.

“The combination of AXIS and Novae creates a bigger, better business with a wider range of products and services, enabling us to do even more for our clients and partners,” said Fosh. “Both companies share similar values and priorities – we are specialty businesses that place a high priority on our clients and employees. Our culture fosters innovation and entrepreneurialism, and I expect that to continue as we bring together the best of our two companies.”

Novae’s reinsurance business, meanwhile, will be merged into AXIS Re.

Related stories:
Novae Group agrees to huge AXIS Capital bid for business
AXIS bids more than NZ$840 million for Novae Group