Chubb on Thursday confirmed that it had offered the Hartford $65 per share for that company, representing a 26 percent premium over the company’s recent average stock price.
“We've not yet received an answer to the proposal but are getting excited about constructive, private discussions to be able to expeditiously consummate a fair transaction that benefits all of our respective stakeholders,” Chubb wrote in a news release.
The Hartford’s 2021 10-K reported it had more than 357.5 million shares outstanding as of Feb. 18, meaning the Chubb offer would represent a roughly $23.2 billion acquisition. Chubb said it would pay shareholders a mixture of stock and funds.
If approved by shareholders, the offer would also place a Top 20 insurer into the hands of a carrier body shops call one of the nation’s best at treating customers right.
“The Hartford's Board of Directors is carefully taking into consideration the proposal using the aid of its financial and legal advisors,” the Hartford wrote in a Thursday news release. “The Board of Directors is committed to acting within the needs of shareholders in the long run.”
The Hartford ranked No. 20 in private passenger car insurance market share in 2021, according to the National Association of Insurance Commissioners. Preliminary NAIC 2021 data places the Hartford at No. 19 and located a lot more than $1.91 billion in earned private passenger auto premiums. The Hartford’s 10-K reports nearly $2.06 billion.
“The Company is in the process of transforming its automobile and homeowners products to regain competitive advantage using the state-by-state rollout of the new automobile product beginning in March of 2021,” the Hartford wrote in the 10-K.
Chubb’s North American business posted $822 million in net earned private passenger auto premiums.
Body shops give Chubb an A, Hartford a C+
Chubb received an “A” in CRASH Network’s 2021 “Report Card” according to 2021 responses by 400 collision repairers towards the question: “How good does this insurer’s claims handling policies, attitude and payment practices ensure quality repairs and customer support for motorists?” Chubb ranked No. 2, behind only New york Farm Bureau.
“Chubb causes it to be a priority to repair vehicles properly, following the auto manufacturers' guidelines, without pressure to cut costs,” a Maryland repair shop manager told CRASH Network.
The Hartford rated a C+, based upon answers in the 691 auto body shops weighing in with that insurer. The national average of all insurers was a B-.
Only a number of Top 25 insurers were perceived by shops to deal with customers better than the national B- average, according to the CRASH Network “Report Card.”
Erie Insurance scored an A-. Amica and Auto-Owners received a B+. AAA affiliate Auto Club Enterprises rated a B.
