XL Group Confirms Preliminary Discussions with Catlin Group Limited Regarding Potential Transaction
(dublin, ireland) - December 17, 2014
Noting the announcement madeby Catlin Group Limited (Catlin) this morning,XL Group plc (NYSE: XL) today confirmed that it is engaged inpreliminary discussions with Catlin (LSE: CGL) regarding a potential transactionto acquire the company and form a combined entity.
XL CEO Mike McGavickcommented: “Both XL and Catlin – respected, innovative, global P&C firms -are well positioned on their own. However, we both believe that we will be farbetter positioned and stronger together. We see this transaction as deeplyaccelerating the strategies of both companies.
“Specifically, the combinedentity would be a leader in the global specialty and property cat markets andwould make greater and more efficient use of both companies’ global networksand infrastructure. As Catlin is the leading presence at Lloyd’s, thecombination would immediately expand many of the lines of business in which XLhas recently invested.In theincreasingly competitive reinsurance market, the combined company would be atop 10 player, thereby increasing alternative capital opportunities and overallrelevance to clients and brokers. The proposed transaction is expected toresult in attractive economics starting in the first year and long-term valuefor shareholders.
“For these reasons, andcrucially, for the deep cultural and strategic alignment we see between XL andCatlin, with both built on disciplined underwriting, we see meaningfulopportunity in this transaction.”
The transaction wouldrequire approval by the Boards of Directors of each company and would besubject to various shareholder and regulatory approvals and completion ofdiligence. There can be no assurance that a transaction will result from thesediscussions, nor can there be any certainty as to the terms on which any suchtransaction might proceed.
XL does not intend tocomment further at this stage and any further statements will be made if andwhen appropriate.
XL Group plc (NYSE:XL),through its subsidiaries, is a global insurance and reinsurance companyproviding property, casualty and specialty products to industrial, commercialand professional firms, insurance companies and other enterprises throughoutthe world.XL is the company clientslook to for answers to their most complex risks and to help move their worldforward.To learn more, visitwww.xlgroup.com
This press release contains forward-lookingstatements. Statements that are not historical facts, including statementsabout XL's beliefs, plans or expectations, are forward-looking statements.These statements are based on current plans, estimates and expectations, all ofwhich involve risk and uncertainty. Statements that include the words “would,”“expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “may” orsimilar statements of a future or forward-looking nature identifyforward-looking statements. Actual results may differ materially from thoseincluded in such forward-looking statements and therefore you should not placeundue reliance on them. XL undertakes no obligation to updatepublicly or revise any forward-looking statement, whether as a result of newinformation, future developments or otherwise.
Nothing contained herein shall be deemed to be aforecast, projection or estimate of the future financial performance of XL,Catlin or the combined business following completion of any potentialtransaction.