AXIS Capital is acquiring diversified specialty reinsurer Novae Group for $604mn.
Novae, which operates through Lloyd’s of London, will expand AXIS’ international specialty insurance business to create a $2bn insurer in the London specialty market. Based on figures from last year, the combined entity represents a global specialty reinsurer with over $6bn in gross written premiums.
“The acquisition of Novae is a great opportunity to accelerate the breadth and depth of talent, lines of business, and leadership positions that we are developing in the London market for specialty risks, advancing our growth and enabling us to better serve our clients,” said AXIS Capital president and chief executive Albert Benchimol.
According to Benchimol, a key component of their growth strategy is to have leadership positions, relevance, and scale in each of the specialty risk markets where they choose to compete.
Once the transaction is completed, Novae CEO Matthew Fosh will be appointed the company’s executive chair, Europe. He will report to Benchimol and help guide the integration of the two businesses.
“By joining AXIS, we are becoming part of a global leader in specialty insurance and reinsurance. AXIS is an ideal partner for Novae’s clients and our employees – and I am particularly enthused for our employees who will benefit from having access to the financial strength of a major global carrier and to the enhanced tools, support, and resources required to grow our portfolio of underwriting businesses,” said Fosh.
According to Fosh, the two businesses are highly complementary and share like-minded corporate cultures. He believes this creates significant potential for the combined platform.
The transaction – subject to regulatory approval – is expected to close in the fourth quarter of 2017.
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