Chubb LtdNYSE
Advanced Chart
  • Thu, Jan. 14, 6:25 PM
    • As expected, ACE Limited (ACE -0.2%; +1.8% after hours) has closed on its acquisition of Chubb (NYSE:CB), for $29.5B in cash and stock, and now takes on Chubb's name as its own.
    • ACE will begin trading tomorrow on NYSE using the CB symbol as well.
    • The move creates the world's largest publicly traded property and casualty insurer, with (pro forma) market cap of $51.2B, total assets of about $150B, and annual gross written premiums of $37B.
    • The two have been in extensive integration planning since their July announcement, ACE says, and it expects annual pretax expense savings of about $650M by 2018. The deal should be immediately accretive to EPS and book value, and to be accretive to ROE (and to EPS on a double-digit basis) by year three.
    • Its new name of Chubb Limited will be official in a few days with publication from the Swiss Commercial Register.
    • Previously: EXR, USCR, WWE up in late trading on S&P index changes (Jan. 13 2016)
    | Thu, Jan. 14, 6:25 PM | 2 Comments
  • Jul. 9, 2015, 6:08 PM
    • MedPro, a malpractice insurer in the portfolio of Berkshire Hathaway (BRK.A, BRK.B), has agreed to buy rival Plico for cash, and is keeping its eye on other targets as well.
    • The deal terms were undisclosed, but with a book value of about $60M (it had $30M in premiums and $60M in surplus premiums last year), Plico likely drew $75M to $90M in the deal. It's MedPro's second acquisition since it became part of Warren Buffett's company in 2005.
    • The $28B deal between ACE Limited (NYSE:ACE) and Chubb (NYSE:CB) makes a stronger insurance rival for Berkshire's businesses, but not a real threat as there's little overlap between Chubb's mid-market clients and Berkshire's and Geico's bigger targets, says Morningstar's Greggory Warren.
    • Meanwhile, the U.S. has fined Forest River, Berkshire's RV-making unit, $5M for delaying two recalls of camper trailers with defects that posed a fire risk.
    • Today: BRK.A +0.8%; BRK.B +1.1%; ACE +0.8%; CB +0.7%.
    | Jul. 9, 2015, 6:08 PM
  • Jul. 6, 2015, 10:22 AM
    • Although the big increase in the price of Chubb (CB -0.4%) post-takeover announcement reflects the current share price of ACE Limited (ACE -0.8%), says analyst Meyer Shields, the stock remains significantly undervalued. A purchase of ACE itself is fine, says Shields, but a buy of CB works as an indirect way of capturing upside.
    • Will another buyer emerge? Not likely, says Shields, noting very few insurance companies are large enough to even consider an offer. Berkshire Hathaway is one, but the company is already building its own specialty insurer and typically avoids auction scenarios.
    • He upgrades to Outperform with $141 price target, a 16.5% premium to the current price.
    • Previously: ACE buying Chubb in cash and stock deal for $28.3B (July 1)
    | Jul. 6, 2015, 10:22 AM | 3 Comments
  • Jul. 1, 2015, 12:30 PM
    • "This changes almost everything" in P&C, says KBW's Meyer Shields. "Ace (ACE +2%) is a very experienced and successful acquirer." The deal should help Ace better compete with rivals like AIG (AIG +1%) and Berkshire Hathaway (BRK.A, BRK.B).
    • Merger presentation slides
    • Unlike some other insurers focused on buybacks - including the acquired Chubb (CB +29%) - Ace and its CEO Hank Greenberg have been using capital for purchases, building scale and diversifying risk.
    • Chubb CEO John Finnegan - previously set to retire at the end of 2016 - could be in for a nine-digit golden parachute should he be let go prior to that or resigns for reasons such as a reduction in responsibility or pay. Greenberg is set to lead the combined company.
    • Previously: P&C stocks on the move after Chubb sale (July 1)
    • Previously: ACE buying Chubb in cash and stock deal for $28.3B (July 1)
    | Jul. 1, 2015, 12:30 PM | 9 Comments
  • Jul. 1, 2015, 7:12 AM
    • Chubb (NYSE:CB) owners will receive $62.93 per share in cash and 0.6019 shares of ACE stock for each share of Chubb they own - $124.13 per share based on ACE's closing price last night. Chubb closed at $95.14 - the stock's higher by 31.4% premarket to $125. ACE is ahead by 5.2% to $107.
    • ACE expects the purchase to be immediately accretive to EPS and book value, and by year three be accretive to EPS on a double-digit basis and accretive to ROE. The ROI should exceed ACE's cost of capital within two years, and tangible book value per share will return to its current level in three years.
    • A conference call is set for 8:30 ET.
    | Jul. 1, 2015, 7:12 AM | 27 Comments