Hartford rejects $23bn takeover approach from Chubb

Hartford Financial Services Group has rejected a $23bn takeover approach from US non-life insurer Chubb, it confirmed on Tuesday.

Chubb made the unsolicited approach, which valued the property and casualty insurance specialist at $65 per share, earlier in March. It argued that combing the two firms would be “strategically and financially compelling” for both sets of shareholders.

The proposed offer represented a 26% premium to the Hartford’s average share price over a 20-day period, or a 13% premium to its shares' closing price the day before news broke of a potential bid.

However, the Wall Street firm said on Tuesday that following talks with financial and legal advisors, the board had opted to unanimously reject the potential bid, adding that entering into discussions with Chubb “regarding a strategic transaction would not be in the best interests of the company or its shareholders”.

It concluded: “The board reaffirmed its commitment and resolve in the continued execution of The Hartford’s strategic business plan.”

As at 1415 GMT, shares in Hartford were down 1% while Chubb was largely flat.

At the time of publication, Chubb had yet to make a formal response.