$4.28 billion merger of XL and Catlin wrapsReprints
XL Group P.L.C. has completed its $4.28 billion acquisition of Catlin Group Ltd., Dublin-based XL said Friday.
The deal, originally proposed in December, will create an insurance powerhouse writing nearly one-tenth of all Lloyd's of London business.
The combined company will be marketed as XL Catlin while keeping XL Group P.L.C. as the name of the parent, the companies said in a statement.
Mike McGavick will continue as CEO, and Stephen Catlin, founder and CEO of Catlin, is executive deputy chairman and will serve on the combined company's board of directors.
In an interview, Mr. McGavick said he is excited that the merger has been completed, as the companies worked quickly to answer regulators' questions and resolve uncertainty for employees.
In about 30 locations where XL and Catlin both had operations, teams will be meeting next week, Mr. McGavick said.
“We really believe this combined entity makes a difference to our clients,” he said. “We'll be on the front foot in the market growing out business over the next six months.”
Other previously announced changes in senior leaders as a result of the merger include:
•Greg Hendrick, previously CEO of insurance operations at XL, is now CEO of reinsurance.
•Paul Brand, formerly chief underwriting officer of Catlin, is chief underwriting officer for insurance and will serve as chair of the insurance leadership team.
•Kelly Lyles, previously XL's head of professional lines, is chief regional officer of insurance and deputy chair of the insurance leadership team.
The closing of the transaction follows the receipt of all necessary regulatory and shareholder approvals, the insurers said in the statement.
Mr. McGavick said the reception the deal received from brokers and risk managers at the Risk & Insurance Management Society Inc.'s annual conference in New Orleans this week were very positive.
While the combined name is effective on Monday, the combined company's new brand actually will be launched Tuesday. That is because London, where a large proportion of XL Catlin's employees are based, has a public holiday Monday.