Mar 19, 2021 - Economy

Insurance company Chubb offers to buy rival Hartford

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."
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