During insurer and reinsurer Chubb’s first-quarter 2021 earnings call held earlier today, Chairman and Chief Executive Officer (CEO), Evan Greenberg, said that “the chapter with The Hartford is closed.”
Earlier this week, U.S. property and casualty insurer The Hartford revealed that it had rejected a further two unsolicited acquisition offers from Chubb.
The third and highest proposal came on April 14th, 2021, when Chubb raised its offer to $70 per share, noting that this is the top end of its range.
Ultimately, The Hartford’s board of directors, after consultation with its financial and legal advisors, unanimously rejected both proposals on the grounds that “entering into discussions regarding a strategic transaction would not be in the best interests of the company and its shareholders.”
On the same day as The Hartford’s announcement, Chubb released a statement expressing its disappointment over a lack of response from The Hartford following its proposals.
But while some might have been expecting Chubb to return with a new and improved proposal, comments made by the company’s CEO suggests otherwise.
“In light of recent events concerning The Hartford, and for the sake of absolute clarity, I want to reiterate, once again, our enduring views concerning M&A and capital management. We look at lots of deals every year, different sizes, small to large, different geographies, and product areas. And we pull the trigger infrequently.
“We have made 17 acquisitions over the past 15 years and have an excellent track record of advancing the company’s capabilities while creating shareholder value. Our approach is steady and consistent, we are extremely patient, disciplined and the money is not burning a hole in our pocket. If we believe the transaction will advance our strategy and further what we are building organically, and is good for shareholders, we won’t hesitate to pull the trigger,” said Greenberg.
Later in the call Greenberg was questioned on the company’s bids for The Hartford, to which he replied “Look, the chapter with The Hartford is closed, we have moved along.”
During the call, Greenberg was also very positive on opportunities for profitable commercial lines premium growth in the current market, and said that he expects favourable conditions to persist.
Chubb recently reported an impressive set of results for the first-quarter of 2021, including a P&C combined ratio of 91.8% and underwriting income of $622 million for the period, despite elevated catastrophe losses.