AXIS bids more than $600 million for Novae Group

Company “aims to bring certainty to transaction” with huge bid

AXIS bids more than $600 million for Novae Group

Insurance News

By Terry Gangcuangco

AXIS Capital Holdings Limited has improved its cash offer to acquire Novae Group plc from July’s 700 pence per share to 715 pence. This full and final offer values Novae’s entire share capital at approximately £477.6 million (approximately $611 million).

“We believe that our final bid represents compelling and full value for Novae, as recognised by the Boards of both companies. By offering Novae shareholders an improved cash offer, AXIS aims to bring certainty to the transaction,” commented AXIS Capital president and chief executive Albert Benchimol.   

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He said the transaction benefits announced with the initial offer have not materially changed with the revised one. “We continue to expect meaningful earnings and ROE (return on equity) accretion within the first year after close.”

As reported, Novae will expand AXIS’s international specialty insurance business to create a $2 billion insurer in the London specialty market. Novae chief executive Matthew Fosh will report to Benchimol as executive chair, Europe.

“This acquisition is fully aligned with AXIS Insurance’s international specialty insurance growth strategy and will combine two highly complementary businesses. We firmly believe this combination will create significant value for AXIS’s shareholders with limited execution risk,” said Benchimol.

Headquartered in London, Novae underwrites through Lloyd’s Syndicate 2007 and employs approximately 300 people. It offers expertise across marine, aviation, political risk, and specialty risk insurance and reinsurance; and also underwrites a range of property risks across the UK, Europe, and the US.

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