March 19, 2021 by Greg Meckbach
Chubb Limited is offering to buy The Hartford Financial Services Group Inc. for about US$23 billion.
Chubb and Hartford each own property and casualty commercial insurers in Canada. Chubb is based in Zurich, Switzerland, while Hartford is based in the U.S. state of Connecticut.
Hartford said Thursday it “is carefully considering the proposal with the assistance of its financial and legal advisors.” The proposed deal is non-binding and unsolicited.
Hartford’s Canadian branch office is in Newmarket, Ont., about 50 kilometres north of downtown Toronto.
In 2019, Hartford reported net premiums written in Canada of $10.5 million in property and $6.5 million in liability, according to the 2020 Canadian Underwriter Statistical Guide. In Canada, Hartford also writes auto, boiler and machinery, fidelity, and surety.
Chubb was known as ACE until ACE acquired The Chubb Corporation in 2015. Chubb Group ranked 19th in the Canadian P&C market in 2019 with $514.4 million in net premiums written.
Chubb announced Mar. 18 that it is offering to buy Hartford for US$65 per share, a 26% premium over its most recent share price. There are about 357.4 million Hartford shares traded right now on the New York Stock Exchange.
Chubb says the proposed merger “would be strategically and financially compelling for both sets of shareholders and other constituencies.”
For its part, Hartford says its board of directors is “committed to acting in the best interests of shareholders over the long term.”
In 2018, Hartford acquired specialty insurer Navigators for US$2.1 billion.
Feature image via iStock.com/Kritchanut