Mar 19, 2021 - Economy

Insurance company Chubb offers to buy rival Hartford

Dan Primack

Illustration of a hundred dollar bill with Benjamin Franklin holding an umbrella. — Illustration: Aïda Amer/Axios

Chubb offered to buy rival property and casualty insurer Hartford Financial Services Group for $23.24 billion in cash and stock.

Why it matters: This would be the largest U.S. property insurance and casualty insurance merger since the current version of Chubb itself was created in January 2016, via the nearly $30 billion merger with Evan Greenberg's Ace Ltd.

Pricing: Chubb's offer works out to $65 per Hartford share, representing a 13.2% premium to Wednesday's close.

The bottom line: "Hartford was one of the hardest-hit U.S. insurers during the 2008-09 global markets meltdown. The firm took federal aid, which it has since fully repaid," the Wall Street Journal writes.

"In the years since, Hartford divested various units to focus mostly on property-casualty insurance for businesses and individuals, offerings for employers' benefit programs and a mutual-funds business."

Add Axios on Google

Insurance company Chubb offers to buy rival Hartford

What to read next