Property and casualty insurer The Hartford, which employs thousands of people in the city, said Thursday that it has been approached by competitor Chubb about a possible buyout.
In a statement The Hartford said its 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.”
Late Thursday, Zurich, Switzerland-based Chubb confirmed its pursuit of The Hartford. It said its proposal would value the company at $65 per share. The Hartford’s stock price, which has doubled over the past year, saw a major 17.62% jump on the possible takeover news, opening Thursday morning at $57.94 and closing the day at $68.15.
“We have not yet received a response to our proposal but are looking forward to constructive, private discussions in order to expeditiously consummate a fair transaction that benefits all of our respective stakeholders,” Chubb said in a statement. “No agreement has been reached, and there can be no assurance any transaction will result from these discussions, and even if a transaction is agreed upon, there can be no assurances as to its terms, structure or timing.”
Bloomberg News first reported the possible deal and said talks are in an early stage, according to a source familiar with the situation.
Chubb is a global insurer that has its North American headquarters in New Jersey. It’s led by Evan Greenberg, son of former AIG CEO Hank Greenberg, a well-known name in the insurance industry.
The Hartford is one of Greater Hartford’s largest employers with 6,500 workers in the state as of March 2020, according to Hartford Business Journal’s Book of Lists. The Hartford is also one of the region’s most active corporate citizens including CEO Chris Swift who recently helped lead a fundraising campaign for the Boys and Girls Club’s new recreation center now under construction in Hartford.
If a deal does happen it would represent another high-profile loss of a corporate headquarters for Connecticut following Rhode Island-based CVS Health’s purchase of insurer Aetna and General Electric’s decision to relocate its headquarters to Boston.