The boss of $66 billion AXA (AXAF.PA) bought XL Group back in 2018 to beef up its position insuring against storms and other catastrophes.
AXA XL’s reinsurance arm, about 10% of group revenues, also drove pricing up 7% last year.
Based on AIG’s (AIG.N) recent sale of its reinsurance arm Validus Re, which was done at 1.4 times book value, XL’s reinsurance unit might be valued at around $2.8 billion.
The extra cash may help placate investors that never much liked the deal, given that the contribution to earnings from XL should now be more stable.
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Persons:
Thomas Buberl, Aimee Donnellan, George Hay, Oliver Taslic
Organizations:
Reuters, AXA, XL Group, XL, Twitter, Thomson
Locations:
U.S, China