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Axis Capital raises bid for London insurer Novae

Bermuda-based speciality insurer and reinsurer Axis Capital has raised its takeover offer for the Lloyd's of London insurer Novae to about £477.6m.

Originally, Axis Capital has agreed to acquire Novae Group for £467.6m in cash representing 700 pence per share in July, 2017.

Currently, Axis Capital raised its offer for Novae by £9.6m. However, Novae has agreed for the offer price of 715 pence per share value.

Axis Capital president and CEO Albert Benchimol said: “We firmly believe this combination will create significant value for AXIS’s shareholders with limited execution risk.

“By offering Novae shareholders improved cash offer, AXIS aims to bring certainty to the transaction.”

The acquisition of Novae is likely to pave way for the formation of a $2bn insurer in the London specialty market.

In July, Axis Capital said that following the completion of the transaction, Novae CEO Matthew Fosh will take over as the executive chair for Europe, and will report to Benchimol.

Axis Capital Holdings has market cap of $5.26bn and the firm provides a range of specialty insurance, through subsidiaries and branch networks- based in Bermuda, the United States, Canada, Europe and Singapore.

Headquartered in London, the Novae Group operates through Syndicate 2007 at Lloyd’s, covering specialty insurance and reinsurance that include property, casualty, political risk business, marine and aviation.

Image: AXIS Insurance offices in Alpharetta, Georgia. Photo: Courtesy of Thomson200.