Last week, Agency Checklists reported on Chubb’s unsolicited offer to acquire The Hartford. Chubb is currently the eighth-largest P&C insurer in the U.S. with $24,054,673,303 in Direct Written Premiums and a 3.32% share of the market. A potential acquisition of the Hartford, the 13th-largest P&C insurer with a 1.85% market share and $12,378,219,253 in Direct Written Premiums would have likely created a new top 5 P&C insurer in the U.S.
The Hartford board of director’s, however, rejected the offer shortly after its announcement last week. While many thought the Hartford’s statement would be the end of the issue, surprisingly, Chubb issued its own follow-up. Here is what it said:
As demonstrated by our industry-leading returns and underwriting performance, we have created an unsurpassed franchise in the insurance industry and its most dynamic markets. We continue to have great confidence in our ability to capitalize on favorable commercial insurance market conditions. Our organization is totally focused, and we remain firmly committed to delivering significant value for our shareholders.
Although we were disappointed that The Hartford chose not to engage in discussions regarding a strategic business combination, our shareholders demand of us, and we demand of ourselves, that we remain a disciplined acquirer with an uncompromising focus on the fair value of any institution that we could acquire.
Translation: It appears we may see more unsolicited offers to other major insurers from Chubb in the near future.