{"id":4008,"date":"2015-07-05T01:44:54","date_gmt":"2015-07-04T20:44:54","guid":{"rendered":"http:\/\/gator4211.hostgator.com\/~cinnww\/insurance-advocate.com\/?p=4008"},"modified":"2018-12-12T18:55:15","modified_gmt":"2018-12-12T13:55:15","slug":"ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost","status":"publish","type":"post","link":"https:\/\/www.insurance-advocate.com\/2015\/07\/05\/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost\/","title":{"rendered":"ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost"},"content":{"rendered":"<p class=\"p2\"><span class=\"s1\"><a href=\"http:\/\/www.acegroup.com\">ACE Limited<\/a> will acquire rival The Chubb Corporation for $28.3 billion, or $62.93 per share in cash and 0.6019 shares of ACE stock, the companies announced July 1.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">ACE used the term \u201ccomplimentary\u201d a number of times to describe the two companies in the statement announcing the planned acquisition. ACE Chairman and CEO Evan Greenberg further explains, \u201cWe will be well balanced with greater presence and capabilities in product areas that have less exposure to the commercial P&amp;C cycle. We have complementary product strengths \u2013 where one of us is not present, the other is. Where one of us is strong, the other is even stronger. Where there is overlap in product, generally one of us is more present at the large end of the corporate market while the other is serving the smaller or mid-market segment.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">He adds the combined company will be able to do more than the two separately, with Chubb enhancing ACE\u2019s ability to serve the upper-middle market while ACE can deliver more products for Chubb\u2019s middle-market clients.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Greenberg concludes, \u201cTogether, we will grow more substantially and at a faster rate, producing greater earnings, than we could achieve as two separate companies. We look forward to welcoming the talented Chubb employees and their customers and distribution partners to the ACE family.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">John D. Finnegan, chairman, president and CEO of Chubb, says, \u201cThe combination brings together two highly respected and successful companies with complementary capabilities, assets and geographic footprints. We are confident that it will deliver strong value to Chubb shareholders, including an immediate premium and participation in the future growth and profitability of a well-positioned combined company.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">The combined company will transition to operate under the Chubb name globally and be based in Zurich. Greenberg will lead the company as chairman and CEO while Finnegan will serve as executive vice chairman for External Affairs of North America and assist with integration. The company\u2019s board will be expand from 14 to 18 directors with the addition of four independent directors from Chubb\u2019s current board.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Finnegan adds, \u201cWe are pleased that the combined company will adopt the Chubb brand, and view this as an affirmation that both companies share a commitment to the attributes of quality and service the brand represents. We look forward to working together as we create a best-in-class global franchise in P&amp;C insurance.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">A New York Times <a href=\"http:\/\/www.nytimes.com\/2015\/07\/02\/business\/dealbook\/ace-and-chubb-face-headwinds-of-history.html\"><span class=\"s2\">analysis<\/span><\/a> notes that ACE is paying a premium for Chubb, implying that the acquirer \u201cbelieves strongly in the revenue gains it is promising.\u201d It goes on to say previous insurance acquisitions, such as Citicorp and Travelers, and Provident and Unum, had similar goals that didn\u2019t materialize as planned.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">The Wall Street Journal <a href=\"http:\/\/blogs.wsj.com\/totalreturn\/2015\/07\/01\/what-the-ace-chubb-deal-could-mean-for-consumers\/\"><span class=\"s2\">says<\/span><\/a> high-net-worth customers will have fewer options for specialized coverages after the deal, but adds that it remains to be seen if prices increase as a result.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">The transaction is expected to close Dec. 31.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ACE Limited will acquire rival The Chubb Corporation for $28.3 billion, or $62.93 per share in cash and 0.6019 shares of ACE stock, the companies announced July 1. ACE used the term \u201ccomplimentary\u201d a number of times to describe the two companies in the statement announcing the planned acquisition. ACE Chairman and CEO Evan Greenberg [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":4009,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,308,156],"tags":[],"class_list":["post-4008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial","category-currentnews","category-personal-insurance","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts\/4008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/comments?post=4008"}],"version-history":[{"count":0,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts\/4008\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/media\/4009"}],"wp:attachment":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/media?parent=4008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/categories?post=4008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/tags?post=4008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}