Aspen Insurance Holdings Ltd. will continue to function as an independent property and casualty insurance company after rejecting a $3.2 billion offer from competitor Endurance Specialty Holdings Ltd.
The Bermuda-based insurer feels poised to expand significantly in the coming months, having invested $150 million into bolstering its name in the US market.
Aspen CEO Chris O’Kane felt that Endurance’s bid, amounting to $47.50 per share, didn’t take into account the company’s future growth and earning potential.
“$47.50 doesn't begin to recognize the financial prospects of Aspen,” said O’Kane.
O’Kane also worried that a merger with Endurance would result in an excessively large and bloated entity.
“Bigger might be better, but in what way?” said O’Kane. “You can be bigger by being taller, by being more muscular, or you can be bigger by being fat and flabby, and not many people want to achieve scale by being fat and flabby. That's what I think Endurance offers us. It's the wrong way to be bigger.”
