Relevant Document:AXA Response to InterrogatoriesEvent Driven Takeaways
- AXA and XL have completed their merger application with the Louisiana Department of Insurance.
- A public hearing in Louisiana has been scheduled for Aug. 23.
AXA and XL have completed their merger application in Louisiana, according to documents released today, July 31, by the state’s insurance department.
The Louisiana Department of Insurance has
scheduled a public hearing for Aug. 23. After the hearing, the state’s insurance commissioner has 30 days to issue a ruling.
As
reported in May, Louisiana regulators asked AXA and XL to provide additional information about their transaction. Based on the documents released today, the insurance department’s questions were straightforward and did not pose a significant threat to the deal.
For example, the insurance department asked for information about the transaction’s effects on competition. In response, the companies informed the state regulator: “The proposed transaction will not substantially lessen competition, create a monopoly or significantly increase an insurer’s market concentration in any line of insurance business in Louisiana.”
AXA and XL have disclosed that Louisiana, Delaware, New York, and Texas need to approve change-of-control filings. The merging parties have also filed financial compliance paperwork or notices of exemption in Louisiana, Delaware, Alaska, Arizona, Connecticut, Maryland, Missouri, and Wisconsin.
As
previously reported, Louisiana’s oversight of the deal was triggered by AXA’s proposed acquisition of T.H.E. Insurance Company. T.H.E. Insurance is a company specializing in the niche area of providing insurance coverage and services to the amusement and entertainment industry.
XL announces second-quarter results today after market close. The company is not holding a call to discuss earnings.
--Ryan Lynch