AXIS Capital completes acquisition of Novae
AXIS Capital Holdings Limited (“AXIS Capital”) (NYSE:AXS) today announced that it has received clearance from all applicable regulators, including the European Commission, and has finalised the completion of its acquisition of Novae Group plc (“Novae”) (LON:NVA). The acquisition creates a $2 billion insurer in London and a top ten (re)insurer at Lloyd’s, with total global gross written premiums of $6 billion (based on 2016 actual results).
The transaction advances AXIS’ strategy to hold leadership positions and scale in each of the specialty risk markets in which it competes. Additionally, Novae’s portfolio complements AXIS’ existing book of business, allowing the new entity to write new and larger lines and benefit from an expanded distribution platform.
Mr Benchimol commented: “This is a significant acquisition and an important milestone for AXIS. Acquiring Novae greatly adds to the scale and breadth of our international business and also underscores our commitment to London and to Lloyd’s, which continues to be the pre-eminent market for specialty risks.
“Novae is known for its market-leading underwriting talent, which we expect will thrive at AXIS. Our goal is to bring out the best in both firms as we become one organisation that is even stronger together.”
Mr Fosh commented: “The combination of AXIS and Novae creates a bigger, better business with a wider range of products and services, enabling us to do even more for our clients and partners. Both companies share similar values and priorities - we are specialty businesses that place a high priority on our clients and employees. Our culture fosters innovation and entrepreneurialism, and I expect that to continue as we bring together the best of our two companies.”
Leadership and Integration
As previously announced, Novae CEO Matthew Fosh will become AXIS Capital’s Executive Chair, Europe, and will report to AXIS Capital President and CEO Albert Benchimol.
Novae will adopt the AXIS brand and its insurance business will be merged into AXIS’ international insurance division, led by its CEO, Mark Gregory, who reports to Pete Wilson, CEO of AXIS Insurance.
Alistair Robson, currently Chief Underwriting Officer at AXIS Insurance International, will become Chief Underwriting Officer, P&C, in the combined organisation, and Robert Forster, currently Chief Underwriting Officer at Novae, will be Chief Underwriting Officer, Specialty Lines.
Rory MacGregor, currently Executive Vice President and Underwriting Manager, Singapore, for AXIS Insurance, will hold the role of Head of Regional Hubs and Distribution. John Isachsen, currently Senior Vice President, Claims, AXIS Insurance International, and Dax Gulmohamed, currently Head of Professional Lines, AXIS Insurance International will remain in these roles.
Novae’s reinsurance business will be merged into AXIS Re and will form the core of AXIS’ London reinsurance business, led by Richard Milner, President and Chief Underwriting Officer, AXIS Re London and APAC.