January 14, 2016 by Canadian Underwriter
ACE Limited announced on Thursday that it has completed its acquisition of Chubb, creating the world’s largest publicly traded property and casualty insurance company.
ACE paid approximately US$29.5 billion in the aggregate in cash and stock, based on the most recent closing price of ACE Limited shares and the number of outstanding shares of The Chubb Corporation common stock at the time of closing. Effective immediately, ACE is adopting the Chubb name globally and the new company will begin trading on Friday on the New York Stock Exchange under the symbol “CB.”
The company is also formally launching the new Chubb brand, including its visual identity and “signature,” ACE said in a statement. “The new Chubb brand stands for superior underwriting, service and execution – attributes shared by both ACE and Chubb.”
“ACE and Chubb are now one, and we could not be more excited about moving forward together with our new colleagues and our new brand,” said Evan G. Greenberg, chairman and CEO of Chubb Limited. “The strength and size of our balance sheet place us among an elite group of global P&C insurers.”
The statement said that Chubb is the world’s largest publicly traded P&C insurer, with market capitalization of US$51.2 billion on a pro forma basis, annual gross written premiums of US$37 billion and total assets of approximately US$150 billion. The company also expects to realize annual expense savings of approximately US$650 million pre-tax by 2018. “It is anticipated that the ROI will exceed ACE’s cost of capital within two years, result in a double-digit return by year three, and tangible book value per share is expected to return to its current level in three years,” the statement said.
With operations in 54 countries, Chubb provides commercial and personal P&C insurance, personal accident and supplemental health insurance, reinsurance and life insurance. It offers industrial commercial and specialty P&C globally, professional lines globally, and U.S. middle market commercial P&C. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 30,000 people worldwide.
Following the acquisition announcement on July 1, 2015, both ACE and Chubb engaged in extensive integration planning, the statement said. In a series of announcements since then, the company has named the intended leadership teams for its business segments, major U.S. and international business units, and key functions, including claims. The appointments become effective as of Thursday.
In Canada, Ellen J. Moore will serve as senior vice president, North America Insurance, and regional executive officer, Canadian operations, the company announced in December. Moore was 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 was country president, Canada, ACE Group. Hollenberg will serve as regional chief operating officer for Canada.
Also announced in December were the following business unit leaders in Canada:
• Paul Johnstone will lead Personal Risk Services and report to Moore. Johnstone was SVP, Chubb Personal Insurance, Canada;
• Terri Mitchell will lead Accident, Health and Life Insurance and report to Hollenberg. Mitchell was executive vice president and chief operating officer for ACE in Canada;
• Ana Robic will lead Commercial Insurance and report to Moore. Robic was SVP, Chubb Commercial Insurance, Canada;
• Bobbie Goldie will lead Major Accounts and report to Moore. Goldie was vice president, Professional Risk for ACE in Canada.
For Professional Lines, regional field and marketing leadership:
• Cameron Rose will lead Professional Lines and support both the Major Accounts and Commercial Insurance divisions. Rose, who was SVP, Chubb Specialty Insurance, Canada, will report to Moore;
• Jean Bertrand will lead the Montreal branch and report to Hollenberg. Bertrand was SVP, Montreal branch manager for Chubb;
• Michel Rousseau will lead the Calgary branch and report to Hollenberg. Rousseau was SVP, Western Region manager for Chubb;
• Anne Barnes will lead the Vancouver branch and report to Hollenberg. Barnes was vice president, Vancouver branch manager and Western Region Specialty Lines manager for Chubb;
• Steve Lucas will lead Marketing and Business Development and report to Moore. Lucas was vice president, National Account Marketing, for ACE in Canada.
ACE reported that The Chubb Limited parent company name will be official upon a publication from the Swiss Commercial Register, which is expected “within a few days.” While the company commences business operations and marketing activities globally under the Chubb name effective immediately, local ACE and Chubb insurance companies around the globe will continue to operate with their current names pending local regulatory requirements and other considerations for effecting the transition to the new Chubb name. The transition has no impact on policies or coverage in force.
“Chubb is a unique name with 130 years of heritage,” Greenberg added in the statement. “It stands for excellence, quality and service – these are attributes that we share and value.”
Greenberg also discussed the new logo and visual identity. “Because we are creating a new path, we needed a visual expression to bring our new vision to life. It starts and ends with the Chubb name. Our identity – who we are – comes from our name, which is a symbol of quality and strength. So we have chosen a new logo that is a simple expression of our name, with no extra symbols or visual distractions. It’s a simple, refined, modern expression of Chubb.”
Greenberg concluded by saying that craftspeople take personal accountability for their work, often signing their products. “At Chubb, we should all be proud to sign our name to whatever work we do. That is why at the end of every Chubb piece of work, it will be signed ‘Chubb. Insured.’”