Rebuffed once, rebuffed again … and again. Hartford Financial Services Group (Hartford) has rejected further buyout offers from global property and casualty (P&C) insurer Chubb Ltd.
According to Reuters, Chubb has made three unsuccessful takeover proposals to the Connecticut-based P&C insurer, the largest of which valued its US rival at nearly US$25 billion.
The Hartford first gave Chubb the cold shoulder on March 23, 2021, when it rejected an “unsolicited” non-binding takeover bid worth US$23 billion or US$65 per share, describing it as “not […] in the best interests of the company and its shareholders”.
In an earnings report on Thursday (April 22, 2021), Hartford revealed it has declined two more offers from Chubb of US$67 per share and US$70 per share, respectively.
Chubb has since released a brief statement, saying: “Although we are disappointed, we want to repeat that our shareholders demand of us, and we demand of ourselves, that we remain a disciplined acquiror.”
Reuters reports that Hartford’s latest rejections do not come as a surprise as the longstanding P&C insurer, which has roots tracing back more than 200 years, is worth US$80 per share or more, according to analysts.
If Chubb, led by CEO Evan Greenberg, brings another sweetened proposal to the table, this mega-merger could come close to Chubb’s near US$30 billion combination with Ace Ltd. in 2016. The deal would expand Chubb’s capabilities in the market for small-business coverage.