BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

XL Catlin merger synergies higher than first estimated

XL Catlin merger synergies higher than first estimated

XL Group P.L.C. now expects the synergy savings from its acquisition of Catlin Group Ltd. to reach about $500 million by the end of next year.

The insurer initially estimated synergy savings of about $200 million when it announced its acquisition of Catlin. But by early this year, the estimate reached $300 million and in a filing with the U.S. Securities and Exchange Commission earlier this week, XL said the synergy savings could reach $500 million.

In the filing, XL said that its 2016 integration costs would be about $210 million to $220 million for all of 2016.

“XL also estimates, on a preliminary basis, that full-year 2017 Catlin related integration costs will be approximately $60-$70 million,” according to the filing. After fiscal year 2017, XL expects that the incurrence of Catlin-related integration costs will be substantially complete.”

XL also estimated that for all of 2016, operating expenses that exclude the Catlin-related integration costs would be $1.85 billion to $1.91 billion, and a preliminary estimate of full year 2017 operating expenses, also excluding the Catlin-related integration costs, would be $1.77 billion to $1.84 billion.

“This results in synergies of approximately $500 million by year-end 2017 when compared to the preclosing combined base line planned operating expenses of each of Catlin and XL in 2015 of approximately $2.3 billion” that the company disclosed in May 2015.