ACE acquires Chubb
This is pretty big news in the insurance world:
“We are thrilled to announce the acquisition of Chubb, a venerable company with a great brand,” said Evan G. Greenberg, chairman and CEO of ACE Limited. “This transaction advances our strategy in a meaningful way and represents an outstanding opportunity to create significant value over a reasonable period of time for both ACE and Chubb shareholders. We are combining two great underwriting companies that are highly complementary. We will make each other better and create a unique company in a class of its own that has greater growth and earning power than the sum of the two companies separately.”
Greenberg said on a conference call today that ACE approached Chubb “only a few weeks ago” and that the “deal came together rapidly.”
John D. Finnegan, chairman, president and CEO of Chubb, called the deal a “compelling transaction” for all Chubb and ACE stakeholders. “The combination brings together two highly respected and successful companies with complementary capabilities, assets and geographic footprints,” he said.
Greenberg will be chairman and CEO of the combined company. Finnegan has agreed to serve as executive vice chairman for External Affairs of North America and will assist with integration. The company’s board will be expanded from 14 directors to 18 directors with the addition of four independent directors from Chubb’s current board.
Chubb will continue to operate under its name while the combined company transitions to operate under the Chubb name globally. The combined company will remain a Swiss company with principal offices in Zurich.
Initial reports indicate that this transaction will include Chubb's surety and personal lines divisions. However, we would not anticipate any changes to those divisions in the short term.