Insurance giant Chub rivals Hartford

Chub Ltd.

C.B. -2.63%

, Hartford Financial Services Group, one of the country’s largest, oldest and most well-known property-casual insurance companies, has made an initial proposal to acquire Inc.,

HIG 18.71%

The name of the second floor of the industry

Connecticut-based Hartford said in a statement Thursday afternoon that it had “received an unplanned, non-binding proposal” from Chub to acquire the 211-year-old company. Hartford said its board of directors is carefully considering the proposal with the help of its financial and legal advisers.

In a statement after the market closed, Chube said the proposal would give Hartford a share price of share 65, adding that the combination would be “strategically and economically compelling for both shareholders and other constituencies.”

At $ 65, the offer is 12% higher than the stock’s starting price of $ 57.94 on Thursday. Chubb said he submitted his proposal on March 11.

“We have not yet received a response to our proposal but are looking forward to constructive, private discussions that will benefit our respective stakeholders to expedite judicial proceedings,” Chabb said in a statement.

The offer signals that Chubb’s chief executive officer, Evan Greenberg, is ready for another bold deal.

In 2001, Mr. Greenberg was the CEO of Business and Home Insurer SS Ltd., when he joined New Jersey-based Chabb Corp in a nearly billion 30 billion transaction. The merger made Chub an international powerhouse.

Mr. Greenberg and his team have delivered strong financial results, and Chubby has become one of the largest global insurance companies with a market capitalization of over 75 75 billion as of Thursday. Its shares were down 2.6% at the close of the market.

Shares of Hartford rose after news of Chub’s takeover approach to Hartford for the first time on Thursday by Blootberg News. They jumped even further after the insurer’s midnight news release, finishing up about 19% of the day. Its market capitalization is about 24 billion.

Hartford outperformed the U.S. during the 2008-09 global market downturn. No. were the most severely affected insurers. Pay firm took federal assistance, which it has since paid in full. In the years that followed, Hartford created a variety of units to focus on business and individual property-accident insurance, employers’ benefit programs, and mutual-fund business.

There have been several acquisitions by its chief executive, Christopher Swift, over the past few years as the pay firm focused on it. The deal involves the purchase of a unit of specialty business insurers, Navigators Group and Etna Inc., which provides life insurance, disability income and other products for companies’ employee-benefit programs.

Prior to its merger with the S, Chub was known by wealthy Americans as a leading provider of homeowners insurance through its expensive, but extensive masterpiece coverage.

Evercore ISI analyst David Motemaden said Hartford is a logical choice for a company like Chub, which is trying to strengthen operations to insure small-business customers. In a research note, he said Hartford’s small-business franchise could complement Chubb’s leading position in insuring large companies, while Hartford’s business of insuring midsize companies would accelerate Chubb’s operations in that part of the market.

Hartford said in its presentation that its board of directors is “committed to working in the best interests of long-term shareholders.”

Write to Leslie Skizm at Leslie.Skismમ

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Published March 19, 2021, print edition as ‘Chub Bids for Reveal Hartford’.