Chubb has approached rival The Hartford with an unsolicited $23.2bn takeover offer.
The largest US non-life insurer by market capitalisation said it believes the deal would be “strategically and financially compelling for both sets of shareholders and other constituencies”.
The 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 10 March 2021. The consideration represents a mix of stock with the majority in cash.
In a statement published on its website, The Hartford said: “The Hartford’s board of directors is carefully considering the proposal with the assistance of its financial and legal advisors.
“The board of directors is committed to acting in the best interests of shareholders over the long term.”