Global insurer Chubb has released a statement saying it is “disappointed” by The Hartford’s decision to reject its $23.24 billion acquisition offer.
The Hartford’s board unanimously rejected Chubb’s takover bid last week on the basis that such a transaction “would not be in the best interests of the company and its shareholders.”
Since then, reports from Bloomberg suggest that German reinsurer Allianz is exploring an offer for The Hartford and is discussing options with potential advisors.
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.
A recent market poll by Reinsurance News found that 49% of industry participants felt Chubb would need a higher bid to land The Hartford.
But in response to The Hartford’s verdict, Chubb maintains that it is a “disciplined acquiror with an uncompromising focus on the fair value of any institution that we could acquire.”
“As demonstrated by our industry-leading returns and underwriting performance, we have created an unsurpassed franchise in the insurance industry and its most dynamic markets,” Chubb stated.
“We continue to have great confidence in our ability to capitalize on favorable commercial insurance market conditions. Our organization is totally focused, and we remain firmly committed to delivering significant value for our shareholders.”