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Friday, January 9, 2015

CORRECTED-XL Group to purchase Lloyd's of London insurer Catlin for 2.79 billion stg, (NYSE: XL)

XL Group Plc will purchase underwriter Catlin Group Ltd for about 2.79 billion pounds ($4.22 billion), giving the Dublin-based insurer and reinsurer a bigger chunk of the Lloyd's of London market.The offer of 388 pence in cash and 0.13 new XL share values each Catlin share at about 715.3 pence - a premium of 8.3 percent to the stock's close on Thursday.Shares in Catlin, the biggest syndicate on the Lloyd's underwriting floor, were trading at 690 pence in late morning business on the London Stock Exchange.XL Group's shares were untraded before the bell in New York after closing at $35.42 on Thursday. The company' shares fell as much as 4 percent in December when news of its interest in Catlin emerged but they have since recovered.

XL Group plc, through its subsidiaries, is a global insurance and reinsurance company engaged in providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises on a worldwide basis. Shares of XL traded higher by 1.64% or $0.57/share to $35.42. In the past year, the shares have traded as low as $27.79 and as high as $36.35. On average, 2402810 shares of XL exchange hands on a given day and today's volume is recorded at 2948089.