Switzerland based property and casualty insurance company Chubb Ltd (CB) is seeking to purchase United States based investment and insurance company Hartford Financial Service Group Inc. (HIG) for $23.24 billion.
According to a statement released by the company, the transaction will be a cash and stock deal.
On the other end, Hartford acknowledged having received a takeover bid from Chubb but failed to disclose any financial details concerning the deal.
Chubb says it’s still waiting for a response on the matter from Hartford further adding that terms and structure of the deal cannot be assured yet even if Hartford agrees to the takeover proposal.
In a situation which the deal sails through, it will become the biggest in the insurance industry this year. Additionally, the deal will be the largest in United States P&C insurance sector since Chubb changed to its current form (property and casualty) in 2016.
The pandemic has indeed affected the insurance industry, experts have advised insurance companies to try tapping into consolidation as it could help in reducing the significant losses insurance companies recorded last year.
Chief executive of Chubb Evan Greenberg had already warned that last year was would likely go down as the period when the insurance industry recorded single largest loss in its history.
