Reinsurance News

The Hartford Board unanimously rejects Chubb acquisition offer

23rd March 2021 - Author: Luke Gallin

After consultation with its financial and legal advisors, The Hartford has announced that its Board of Directors has unanimously rejected re/insurer Chubb’s approximately $23.24 billion acquisition offer.

Use This HartfordFollowing reports in the media that Chubb had approached carrier The Hartford over a potential acquisition, Chubb later confirmed it had made an offer to combine with the rival insurer, valuing it at $65 per share.

At the time, Chubb said that it believes its proposal to combine with The Hartford is “strategically and financially compelling for both sets of shareholders and other constituencies.”

However, 12 days after Chubb’s unsolicited proposal, The Hartford has announced its rejection of the bid and explains that, “entering into discussions regarding a strategic transaction would not be in the best interests of the company and its shareholders.”

Additionally, the Board has reaffirmed its commitment and resolve in the continued execution of the company’s strategic business plan.

Liberty Mutual Reinsurance

As we wrote at the time, Chubb’s $65 per share offer actually valued the firm at around $2.5 billion higher than The Hartford’s $20.7 billion value at opening on March 18th, the day before Chubb confirmed its proposal.

However, speculation around a potential deal pushed The Hartford’s shares up by 19% during the day, taking its valuation to a high of $24.6 billion during trading, to close the day at $24.36 billion.

In recent days, analysts have ben debating the offer and the sentiment appears to be that perhaps the offer from Chubb was too low, while the door for others to table competing bids is open.

Interestingly, we’ve been polling our readership at Reinsurance News on this deal and the data shows that while 25% of respondents felt the deal might get completed at the offer amount made, 50% said that Chubb will need to raise its offer if it’s to be successful in its efforts to acquire The Hartford.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
£472m paid out for BI test case claims so far, says FCA

New data from the Financial Conduct Authority (FCA) shows that to date around £472 million has been paid out for...