Chubb Confirms Submission of Preliminary Proposal for Strategic Business Combination to The Hartford

Rhea-AI Summary

Chubb Limited submitted a proposal on March 11, 2021, to merge with The Hartford, valuing the company at $65.00 per share, a 26% premium over its average share price of $51.70. The proposal includes a mix of stock and cash. Chubb has not received a response but is eager for discussions aimed at a beneficial transaction for stakeholders. Despite the interest in merging, no agreement has been reached, and uncertainties remain regarding the final terms and timeline of any potential transaction.

Positive

• Proposal values The Hartford at $65.00 per share, a 26% premium over previous share price.
• Proposal structured as a mix of stock and cash, offering liquidity to shareholders.

Negative

• No response received from The Hartford regarding the proposal.
• No assurance that any transaction will take place, casting uncertainty on potential merger.

NEW YORK, March 18, 2021 /PRNewswire/ -- On March 11, Chubb Limited presented The Hartford with a proposal for a combination of our two companies that we believe would be strategically and financially compelling for both sets of shareholders and other constituencies. This proposal would value The Hartford at $65.00 per share and represents a premium of 26% based on its unaffected 20-day volume weighted average share price of $51.70 as of March 10, 2021. The consideration represents a mix of stock with the majority in cash.

We have not yet received a response to our proposal but are looking forward to constructive, private discussions in order to expeditiously consummate a fair transaction that benefits all of our respective stakeholders.

No agreement has been reached, and there can be no assurance any transaction will result from these discussions, and even if a transaction is agreed upon, there can be no assurances as to its terms, structure or timing.

About Chubb

Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 31,000 people worldwide. Additional information can be found at: www.chubb.com.

Cautionary Statement Regarding Forward-Looking Statements:

Forward-looking statements made in this press release, such as statements relating to a potential business combination transaction, the benefits of such a transaction on shareholders and stakeholders, the timing of the consummation of a transaction, and our expectations and intentions and other statements that are not historical facts, reflect the company's current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including those set forth above, which may cause actual results to differ materially from these statements. Additional information regarding factors that could cause differences from these forward-looking statements appears in the company's filings with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and the company does not intend to make any additional comments regarding these discussions or any potential transaction unless and until a formal agreement has been reached or the company's board of directors has approved a definitive course of action.

View original content to download multimedia:http://www.prnewswire.com/news-releases/chubb-confirms-submission-of-preliminary-proposal-for-strategic-business-combination-to-the-hartford-301250674.html

SOURCE Chubb Limited

FAQ

What is Chubb's proposal for The Hartford?

Chubb proposed a merger with The Hartford valued at $65.00 per share, a 26% premium over its recent share price.

When was the proposal submitted by Chubb for The Hartford?

The proposal was submitted on March 11, 2021.

What are the terms of Chubb's proposal for The Hartford?

Chubb's proposal includes a mix of stock and cash, but no specific terms have been finalized.

What is the significance of the $65.00 per share valuation?

The $65.00 per share valuation represents a 26% premium over The Hartford's 20-day volume weighted average share price.

What uncertainties exist regarding the Chubb and Hartford merger proposal?

There is no guarantee that a transaction will occur or that terms will be favorable, as no agreement has yet been reached.