XL Capital Ltd. announced it has completed the purchase of Winterthur International from Winterthur Swiss Insurance Company, a business unit of Credit Suisse Group.
The all-cash transaction, announced by the XL Capital on Feb. 16, 2001, is valued at approximately $405 million. This value is based on financial statements for the business being acquired as at December 31, 2000, and is subject to adjustment based on the completion of audited financial statements for Winterthur International as at and for the period ending June 30, 2001. The final purchase price will reflect, among other things, capital contributions by Winterthur Insurance of approximately $45 million to the acquired business made since December 31, 2000. The value of the transaction is less than previously announced due to, among other things, the exclusion of certain parts of the business agreed by the parties.
The transaction includes Winterthur International Insurance Company based in the U.K., Winterthur International Insurance Switzerland and Winterthur International America Insurance in the U.S., and selected Winterthur International insurance portfolios.
As previously announced, XL will integrate its risk management business into Winterthur International and intends to change the name of Winterthur International to XL Winterthur International.
The financial impact of the acquisition will be discussed in a conference call on August 7, 2001, in conjunction with the release of the XL Capital’s second-quarter results. A live on-line web cast of this call will be available at HTTP://WWW.XLCAPITAL.COM.
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