French insurer, AXA, has bought Bermuda-based XL Group for $15.3bn to create what it said would be a world leader in property and casualty insurance.
AXA offered $57.60 for each XL share, a 33 per cent premium to Friday's closing price, and said buying XL would result in property and casualty insurance rising to half of AXA's earnings, from 39 per cent.
AXA stated that it would finance the deal with debt, cash and the proceeds of the IPO of its U.S. business.
Chief Executive Thomas Buberl said the deal will enable AXA to dominate the global property and casualty market, and reduce its exposure to the volatility of financial markets.
"We will be number one in commercial insurance," Buberl told a news conference in Paris.