ACE Limited and the Chubb Corporation announced on Wednesday that they have received all the regulatory approvals needed for ACE’s acquisition of Chubb, “a transaction that will create the world’s largest publicly traded property and casualty insurer,” according to ACE.
The acquisition was announced on Canada Day 2015 and valued at approximately US$29.7 billion, based on the closing price of ACE Limited shares and the number of outstanding shares of Chubb common stock on Jan. 12, ACE said in a press release. The sale is expected to close on Thursday, Jan. 14, “pending satisfaction of remaining customary closing requirements.”
As previously announced, ACE will adopt the Chubb name upon closing and the company’s stock will begin trading on the New York Stock Exchange under the symbol CB on the first trading day following the closing.
Related: ACE shareholders vote to approve acquisition of Chubb
“We are pleased to have all of our regulatory approvals and we look ahead to the closing of this transaction with great anticipation,” said Evan G. Greenberg, chairman and CEO of ACE Limited, in the release. “Since the transaction was announced six months ago, we have moved rapidly and deliberately with integration planning. This process has given us great confidence in the potential of the new Chubb to create significant value over time and deliver unmatched quality and service to our customers and distribution partners, and superior returns to our shareholders.”
Under the terms of the transaction, Chubb shareholders will receive US$62.93 per share in cash and 0.6019 shares of ACE stock, Chubb added in a statement. Based on the closing price of ACE stock on Jan. 12, 2016 and the approximate number of Chubb shares outstanding, the total value is approximately US$130.40 per Chubb share, or US$29.7 billion in the aggregate. The consideration represents an approximately 37% premium to Chubb’s closing price of US$95.14 on June 30, 2015, Chubb reported.
Last month, ACE announced the leadership team it intends to appoint for the company’s Canadian operations. The company’s Canadian operations will offer a broad range of property, casualty, high net worth personal lines and accident and health products to Canada-based customers served by brokers and agents, ACE said in a press release in early December.
As previously announced, Ellen J. Moore will serve as senior vice president, North America Insurance, and regional executive officer, Canadian Operations. Moore is currently senior vice president (SVP) and Canadian Zone officer of Chubb & Son and president and CEO of the Chubb Insurance Company of Canada. She will report to Harold L. Morrison, Jr., who will serve as SVP of the new Chubb Group and division president, field operations, for the North America Insurance division. Reporting to Moore and serving as regional chief operating officer will be Andy Hollenberg, who is currently country president, Canada, ACE Group. Hollenberg will serve as regional chief operating officer for Canada.
ACE Group is one of the world’s largest multiline P&C insurers, with operations in 54 countries. The Group provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance.
Chubb has provided P&C insurance products through a worldwide network of independent agents and brokers since 1882. The company tailors products for the needs of high-net-worth individuals and commercial customers in niche markets and select industry segments.