PARIS: France’s AXA moved to buy Bermuda-based XL Group for $15.3 billion on Monday to create what it said would be a world leader in property and casualty insurance.
Europe’s second-biggest insurer offered $57.60 for each XL share, a 33 percent 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 percent.
XL has already agreed to AXA’s offer, and AXA, which ranks as Europe’s second-biggest insurer in terms of market capitalization behind Germany’s Allianz, will look to de-list XL’s shares. AXA said it would finance the deal with debt, cash and the proceeds of the IPO of its US business.
Insurers are turning to takeovers to strengthen their businesses as they face tougher regulation and falling returns from financial market investments. AXA’s deal comes just over a month after American International Group said it would buy reinsurer Validus for around $5.6 billion.
P&C insurers’ stocks fell during last year’s natural disaster season and have attracted the attention of bidders as premiums are rising after several years of falling rates.
Allianz had also been seen as a possible suitor for XL, but a source close to the German company said Allianz was not overly concerned by AXA scooping up XL.
CEO 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.
Some analysts were skeptical about the price.
“In our view, the acquisition of XL fits AXA’s strategy of growing in commercial insurance. However, the purchase price looks quite high even after synergy effects and AXA’s debt ratio is again rather stretched,” said analysts at German brokerage Bankhaus Lampe, who kept a “hold” rating on AXA shares.
Analysts at UBS said XL did not necessarily fit AXA’s plans to grow in Asia, given XL’s predominantly US-exposed business.
“AXA targets growth in health, protection and commercial lines, P&C (property & casualty) markets preferably in Asia rather than US reinsurance,” UBS said.
“However, acquiring XL does give global commercial P&C lines exposure and further accelerate AXA’s exit from more volatile business lines in the US,” it added.
AXA has not been hit as hard as some by a series of costly natural catastrophes in 2017, thanks to reinsurance contracts and a diversified business model, and last month it reported higher-than-expected 2017 net profits of €6.2 billion ($7.6 billion).
The company expects the XL takeover to be cash accretive, and result in cost synergies of around $400 million per year, based on pre-tax earnings.
Jerome Schupp, fund manager at Geneva-based Prime Partners which owns AXA shares, said it was a “good deal” given AXA’s plans to cut its exposure to financial markets, and that it looked positive on a long-term view.
The French company also reaffirmed its 2020 financial targets, under which AXA aims to increase earnings per share by 3 to 7 percent a year over the 2016-2020 period.
Law firm Skadden said it was advising XL over the AXA takeover, while AXA added that JP Morgan was involved in part of the financing of the XL takeover.
AXA buys Bermuda-based XL for $15bn in latest insurance mega-deal
AXA buys Bermuda-based XL for $15bn in latest insurance mega-deal
Mapping Saudi soils to grow better crops
- Palm trees, root crops, and coastal plants reveal the land’s story
RIYADH: Saudi Arabia’s land tells stories written beneath the feet. From fertile plains and rugged highlands to vast deserts, the Kingdom’s diverse landscapes shape what can grow, where it grows, and how agriculture can thrive.
Alongside geography and climate, soil conditions play a decisive role in agricultural success. Understanding soil types across the Kingdom helps determine which crops can flourish and what interventions may be needed to sustain them.
In an interview with Arab News, Turki Almutairi, a senior environmental specialist at the National Afforestation Center under the National Center for Vegetation Cover Development and Combating Desertification, outlined the main soil types found across Saudi Arabia.
“The dominant soil in the Kingdom are sandy desert soils, alongside calcareous soils in the central region. Rocky and stony soils are present along mountainous and hilly landscapes,” he said.
“Alluvial soils are common in wadies (valleys), while saline and sodic soils are located in depressions (Sabkhas) and along coastlines. Pockets of clayed soils can be also found around few sites along the Kingdom.”
The Kingdom’s vast territory gives rise to unique soil characteristics in each region, enabling different crops to grow depending on local conditions.
“Soil is the growing medium for plants. The role of soil includes structural stabilization, providing nutrients and a communication medium for plants,” Basil Nasir, soil lead at engineering consultancy William Sale Partnership, told Arab News.
According to Nasir, assessing soil use is essential before determining whether it is fertile or infertile, as different soils support different plant types.
“The soil used for trees differs from the soil used for ornamental plants and from the soil used for aquatic plants. It varies according to the specific needs of each plant, and based on this, we determine what the soil requires and assess its fertility,” he said.
Nasir explained that soil characteristics are shaped by both physical and chemical components. In addition to water and air, mineral particles such as sand, silt and clay are key indicators of soil health. Organic matter, derived from plant and animal remains, forms the fourth major component.
The balance between these elements determines soil behavior. One important physical trait is water-holding capacity, which influences what types of plants a soil can support.
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“If the soil is like dunes, adding water will cause it to run off, but if the soil is clay, its ability to retain water will be very high. If you add water and return the next day, you will find that the water is still there,” said Nasir.
Chemical properties, such as whether soil is alkaline or acidic, are equally important. Understanding both physical and chemical traits allows for proper assessment and treatment when needed.
“What determines whether a plant is suitable for a particular environment is primarily the plant's nature. For example, some plants have fibrous roots and therefore do not require well-draining soil,” Nasir added.
“A palm tree, for example, does not care whether it was planted in one soil or the other because its roots are fibrous. Therefore, palm trees are strong plants and are suitable to grow in both dry and wetlands, while preferring sandy areas.”
Crops such as potatoes, onions, carrots and beetroots — where the edible part grows underground — typically thrive in sandy soils. As a result, plantations of these crops are commonly found in northern regions such as Hail and in Wadi Ad-Dawasir.
In the eastern region, including Al-Ahsa, wetlands are more common due to climatic conditions. Growing plants in such environments often requires human intervention.
“Plants that are coastal or could be found in lagoons or lakes must have some sort of soil around them, like lotus flowers and mangrove trees.”
“An important parameter to keep in mind is that there is no air in its soil, and they are adapted to this condition. However, the lack of air, along with the presence of organic matter, will create a situation where anaerobic bacteria react with the soil, potentially causing diseases we can easily avoid,” said Nasir.
He emphasized that removing organic matter from such soils is essential to ensure plant survival in aquatic environments.
Mountainous and rocky regions in Saudi Arabia are generally volcanic, resulting in low water-holding capacity and challenging growing conditions. However, volcanic ash contributes to high fertility, allowing certain crops to flourish.
As a result, western regions support tree crops such as coffee, mangoes, some banana varieties and pomegranates.
As development accelerates across the Kingdom, soil improvement efforts are expanding under the National Greening Program.
“Soil is considered fundamental for the National Greening Program’s objectives. Understanding the soil variability along the Kingdom is a precondition for fostering sustainable soil management,” Almutairi told Arab News.
Adding, “In this line, the NGP is working towards the establishment of the Saudi Soil Information System (TURBA-KSA), which consists of mapping soils and its functional properties in the Kingdom using state-of-the-art technology.”
He also noted the creation of the “Land Rehabilitation Watch” to report, verify and monitor land rehabilitation nationwide.
“This milestone allows the Kingdom to understand how soil and land health are progressing against national and international targets of land degradation neutrality. Documenting good soil and land management practices is also important, so that those successful practices could be scaled up along the Kingdom, which is a priority task for NGP,” he said.
Raising public awareness is another key pillar of the program.
“Assessing different emerging technologies and soil amendments is a daily activity of NGP, as it then provides technical support to partners on the selection and application of these technologies.”
DID YOU KNOW?
• Saudi Arabia cultivates around 1 million hectares, mainly in Riyadh, Qassim, Hail, and Jouf.
• Farming follows the seasons: winter brings onions, garlic, and carrots, while summer yields watermelon, tomatoes, and cucumbers.
• The Kingdom is a top date producer, with over 31 million palm trees generating nearly 1.54 million tons, especially in Riyadh and Qassim.
Almutairi stressed that soil is often overlooked because it lies unseen beneath the surface, despite its critical role.
Yet soil produces 95 percent of food, stores water, holds more carbon than vegetation and the atmosphere, suppresses contaminants, regulates water, carbon and nutrient cycles, and hosts microorganisms linked to the human microbiome.
He emphasized the need to engage the general public, particularly urban communities disconnected from nature. Education helps people understand where food comes from and how contact with soil — such as walking barefoot — can support well-being. Healthy soils also contribute to cleaner water and air, he added.
Almutairi also called for stronger advocacy among decision-makers, noting that investment in healthy soils supports climate action, food security and sustainable development.
He concluded that key strategies include officially observing UN World Soil Day on Dec. 5, integrating soil education into curricula, launching annual social media campaigns, using art to raise awareness, and organizing public events that connect soils to everyday life.









