The Hartford board of directors on Tuesday unanimously voted against Chubb’s offer to buy the rival carrier for more than $23 billion in cash and stock.
Hartford directors felt it wasn’t worth going any more with Chubb’s cold-call offer of $65 per share for that Top 20 auto insurer.
“The Hartford today announced that its board of directors, after consultation with its financial and legal advisors, has unanimously rejected Chubb Limited's March 11, 2021, unsolicited proposal to acquire The Hartford and determined that getting into discussions regarding a strategic transaction would not be within the best interests from the company and its shareholders,” the Hartford wrote inside a Tuesday news release. “The board reaffirmed its commitment and resolve in the continued execution from the Hartford's business strategy plan.”
The Hartford's 2021 10-K reported it had a lot more than 357.5 million shares outstanding by Feb. 18, meaning the Chubb offer would represent a roughly $23.2 billion acquisition. Chubb said it would pay shareholders a mix of stock and funds.
The Hartford ranked No. 20 in private passenger auto 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 with the state-by-state rollout of a 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 polled by CRASH Network viewed Chubb among the nation’s Top 3 for customer support and repair quality in 2021, passing on an “A” in the outlet’s “Report Card.” The Hartford ranked underneath the B- national average having a C+.
Chubb does not appear to have issued any comment on the Hartford’s decision to reject its terms.
