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  #81  
Old 01-25-2018, 06:39 AM
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I'll only take some of your jobs
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  #82  
Old 02-01-2018, 12:55 PM
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Axis is next. No let me correct that.

Everest is next. Then AXIS.
Is there a reason you believe Everest would be taken out next? They write a great book of business, but that would be a big equity check ($10bn+).

AXIS I can understand, though would like to read your thoughts on that too.
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  #83  
Old 02-12-2018, 10:11 AM
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https://www.insurancejournal.com/new.../07/479907.htm

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XL Group Attracts Interest from Allianz, Other Rivals as Potential Buyers

Bermuda-based insurer XL Group Ltd. is attracting interest from rivals including Allianz SE of Germany, according to people with knowledge of the matter.

Interest from insurers in potentially acquiring XL, which had a market value of almost $10 billion at Tuesday’s close, is preliminary and may not lead to a takeover, the people said. Allianz is looking at XL as a potential target to grow its casualty coverage business in the U.S., the people said, asking not to be identified as the talks are confidential.

Shares of Allianz fell 0.9 percent to 193.36 euros at 9:37 a.m. Thursday in Frankfurt. XL closed up 12.5 percent to $42 in New York on Wednesday. Representatives for XL and Allianz declined to comment.

Dealmaking in the insurance industry has been active since the start of the year, with $11.7 billion of acquisitions announced globally, according to data compiled by Bloomberg. Swiss Re AG confirmed late Wednesday it’s in early talks with SoftBank Group Corp. about an investment from the Japanese firm. Last month, American International Group Inc. agreed to buy Bermuda reinsurer Validus Holdings Ltd. for $5.56 billion.

Premium Growth
XL Group has been hit in recent years by costs tied to disasters around the world. Chief Executive Officer Mike McGavick, who expanded the Bermuda-based insurer in 2015 with the $3.9 billion deal to buy Catlin Group Ltd., this month said he was optimistic about “where we are going” on the back of a solid capital position and growth in premiums.

“We are seeing early signs of a return to realistic and sustainable rate,” he said in a statement. “We feel well positioned for what comes next.”

Allianz Chief Executive Officer Oliver Baete last year said his priority in terms of dealmaking would be to buy a property and casualty business, particularly in the U.S., to address a weak spot for the Munich-based firm. In February 2017, in the face of opposition from some large shareholders, he opted to instead deploy a $3.2 billion war chest to buy back shares, while simultaneously pointing out that he could still finance a takeover if the opportunity arose.

“At the right price, this potential deal makes sense to me,” David Havens, an analyst at Imperial Capital, said in a note to clients. “XL is a mid-sized player in a rapidly consolidating industry. Allianz would bolster its global business platform, and could draw more business.”
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  #84  
Old 02-12-2018, 11:37 AM
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I read the 10-K, they have lots of MBSs on the ledger, high risk professional liability and aviation insurance. Hit by CATS and tax reform. The price has been bid up in recent weeks by this news.
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  #85  
Old 02-12-2018, 12:36 PM
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I read the 10-K, they have lots of MBSs on the ledger, high risk professional liability and aviation insurance. Hit by CATS and tax reform. The price has been bid up in recent weeks by this news.
what's MBS?
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  #86  
Old 02-12-2018, 01:03 PM
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what's MBS?
https://en.wikipedia.org/wiki/Mortgage-backed_security
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  #87  
Old 02-12-2018, 02:02 PM
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At the heart of a previous financial crisis. Did we learn nothing last time?
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  #88  
Old 02-12-2018, 02:03 PM
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At the heart of a previous financial crisis. Did we learn nothing last time?
Oh wow. I did not expect MBS to mean that. I thought it was some sort of insurance product given his mentioning of PL in the same sentence. Like JMO, I am a little surprised that these still exist? But IANAFP (Finance professional).
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  #89  
Old 02-20-2018, 11:55 AM
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Hartford acquires a small segment of Farmer's small commercial lines (Foremost Insurance). They acquired the rights to $200M of renewal book in BOP, Commercial Auto, and WC.

No terms disclosed on the deal.

Insurance Journal
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  #90  
Old 03-05-2018, 09:36 AM
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France’s AXA to Acquire P/C Insurer XL Group for $15.3 Billion

AXA SA agreed to buy XL Group Ltd. for $15.3 billion in cash, seeking to capture a bigger slice of the U.S. property and casualty market as premiums rise after last year’s natural disasters.

The French insurer is paying $57.60 per share, according to a statement on Monday. That’s about a 33 percent premium compared with the stock’s closing price of $43.30 on Friday. Bloomberg reported Saturday that AXA was in advanced talks on the deal, citing people familiar with the matter. The acquisition will be the biggest insurance deal since 2015 and the largest-ever European purchase of a U.S. insurer, according to data compiled by Bloomberg.

Less than two years since taking over AXA’s top job, Chief Executive Officer Thomas Buberl is ramping up deal-making, refocusing on businesses such as P&C commercial lines while shedding some assets and focusing on fewer countries. Financing will come from 3.5 billion euros of cash at hand, an expected 6 billion euros from the planned U.S. IPO and 3 billion euros of subordinated debt. The initial public offering of AXA’s U.S. life unit is expected in the second quarter.

AXA “must believe the timing is right in the cycle to expand in the U.S. reinsurance and P&C markets,” said Karim Bertoni, who helps manage $12 billion at Bellevue Asset Management in Switzerland, before the announcement. Given capital market conditions, “there’s maybe a window of opportunity for both an IPO and an acquisition to reinforce areas where higher returns can be expected.”
Takeover Targets

Companies like XL Group provide insurance backstops for other insurers and have become takeover targets after the heavy toll of natural disasters last year pushed prices for coverage higher. The Bermuda-based insurer also attracted interest from bigger rivals including Germany’s Allianz SE, people familiar with the matter said last month. As of Friday’s close, XL shares had gained 23 percent this year in New York.

Economic losses from weather-related disasters including hurricanes Harvey, Irma and Maria and Californian wildfires reached $306 billion in 2017, according to the U.S. government. Costs from such disasters helped drive down XL’s shares in both 2016 and 2017. To resist pressure from new rivals in the catastrophe market, Chief Executive Officer Mike McGavick sought expansion in specialty coverage and reinsurance through the $3.9 billion purchase of Catlin Group Ltd. in 2015.

Last month, McGavick said he was optimistic about XL’s progress on the back of a solid capital position and growth in premiums. Axa’s purchase of XL Group marks the biggest insurance deal since 2015, according to data compiled by Bloomberg. The biggest insurance takeover this year had been American International Group Inc.’s January agreement to buyValidus Holdings Ltd. for more than $5 billion in cash.

AXA is making a return to large deal-making more than a decade after its last major transaction, the purchase of Switzerland’s Winterthur. Formerly a regional insurer in Normandy, AXA built itself into Europe’s second-largest insurer through major takeovers in the 1990s. Recent deals have been smaller-scale, acquiring assets or setting up partnerships in emerging markets including China, Nigeria and Colombia.
You dawg, we heard you liked mergers so we put a big company inside another big company so you can acquire while you acquire.
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