Catlin share price soars 10 per cent on £2.5bn takeover approach from XL Group
Shares in insurer Catlin whizzed up 10 per cent today after the group said it is in talks with XL Group over a possible takeover which would value it at $3.9bn (£2.5bn).
XL Group would pay 410 pence per share in cash and 0.130 share for each Catlin shares, the Lloyds of London insurer said in a statement on the London Stock Exchange today.
Bermuda-based Catlin said:
A combination of XL and Catlin would create a leading player in property and casualty insurance and reinsurance and expand opportunities for the combined underwriting team in the global marketplace.
Catlin also said if the deal goes through, shareholders will not receive a final year dividend payment.
In the past, the group has attracted criticism for pursuing international expansion over returning equity to its shareholders.
Earlier this year the insurance group reported gross written premium of $4.9bn (£3.1bn) for the first nine months of 2014, an 11 per cent increase on the $4.4bn reported in the same period last year.