When The Hartford rejected Chubb Ltd.’s first buyout bid in late March, industry analysts accurately predicted the Swiss insurance giant would soon return to the table with more competitive offers. Gov. Ned Lamont seemed to agree, telling reporters they were seeing the beginning of what would likely be a much longer “dance” between the two firms.
That dance, however, came to end sooner than most expected this week when Chubb CEO Evan Greenberg declared the company would make no further offers.
In an earnings call with analysts Wednesday, Greenberg provided some insight into the mergers-and-acquisitions philosophy that led Chubb to The Hartford in the first place.
“We are highly confident about our future and wealth-creation prospects and we approached The Hartford from that position of strength,” he said. “This was another opportunity to create additional value and would not distract us from capitalizing on an organic growth opportunity.”
Noting that Chubb has completed 17 acquisitions over the last 15 years, Greenberg said the potential linkup with The Hartford was just one of many the firm has considered.
“We look at lots of deals every year, different sizes, small to large, different geographies and product areas,” he said. “We have lots of optionality. Our approach is steady and consistent. We are extremely patient, disciplined and the money is not burning a hole in our pocket. If we believe a transaction will advance our strategy and further what we are building organically and is good for shareholders, we won’t hesitate to pull the trigger.”
Chubb submitted three bids in an attempt to acquire The Hartford, and each was rejected by the company’s board.
Chubb initially valued The Hartford at $65 per share, or $23 billion. Two subsequent offers increased that amount to $67 per share and later $70 per share, according to disclosures by The Hartford.
When asked to confirm that Chubb would not eventually return with a fourth offer, Greenberg did not mince words.
“The chapter with The Hartford is closed,” he said. “We have moved along. And beyond that, I’m not going to now engage and talk about past events.”
