Catlin Group confirms possible offer from XL Group

Lloyd's of London insurer Catlin Group has officially confirmed the receipt of a possible offer from global conglomerate XL Group.

Catlin claimed: “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.”

The terms of XL’s acquisition would mean that Catlin shareholders will not receive a final dividend for the year ended 31 December 2014.

Discussions are ongoing between both parties, according to Catlin, and the final terms of any possible offer “are subject to the completion of mutual due diligence”.

The stock was up 10.5% at 643p by 16:14 on Wednesday.