ACE becomes Chubb and creates world’s biggest publicly traded insurer

The insurer paid $29.5bn in the aggregate in cash and stock, based on the most recent closing price of ACE Ltd shares and the number of outstanding shares of Chubb Corporation common stock at the time of closing. ACE will adopt the Chubb name globally with immediate effect and the company will begin trading today on the New York Stock Exchange under the symbol 'CB' today. "ACE and Chubb are now one, and we could not be more excited about moving forward together with our new colleagues and our new brand," said Evan Greenberg, Chairman and CEO of Chubb Ltd.hide"We are a global leader in commercial and personal property and casualty insurance, with an exceptionally balanced product portfolio, a broad and deep global presence, extensive distribution channel capabilities, and the ability to serve a diverse array of commercial and personal customers," continued Mr Greenberg. "Our passion for underwriting, along with our industry-leading claims, risk engineering and loss control services and substantially increased data, distinguish the new Chubb as we pursue new, profitable growth opportunities in both developed and developing markets around the world. The strength and size of our balance sheet place us among an elite group of global P&C insurers. Since the announcement last July, we have worked diligently on integration planning with our new Chubb colleagues and we have already begun to put our plans into action," he added. On a pro forma basis, the merged company has market capitalisation of $51.2bn, annual gross written premiums of $37bn and total assets of approximately $150bn. Chubb operates in 54 countries and says it is a leader in industrial commercial and specialty P&C globally, professional lines globally and US middle market commercial P&C. It adds that it is the number one provider of personal P&C insurance and risk services to US high net worth individuals and families, as well as a global leader in personal accident and supplemental health insurance. In a series of announcements made over the past few months, the company has named the intended leadership teams for its business segments, major US and international business units and key functions, including claims. Those appointments became effective yesterday. It said this week that the company continues to expect to realise annual expense savings of approximately $650m pre-tax by 2018. The company said that it also expects to achieve 'meaningful' growth that will result in 'substantial' additional revenue. "The efficiencies created will provide greater flexibility for the company to invest in people, technology, products and distribution," said Chubb. Chubb reckons that the transaction will be immediately accretive to earnings per share (EPS) and book value. By year three, the transaction is expected to be accretive to EPS on a double-digit basis and to be accretive to ROE. Chubb believes that its ROI will exceed ACE's cost of capital within two years and result in a double-digit return by year three. Tangible book value per share is expected to return to its current level in three years. The Chubb Ltd parent company name will become official upon a publication from the Swiss Commercial Register, which the company said is expected within a few days. The company will commence business operations and marketing activities globally under the Chubb name immediately. But local ACE and Chubb insurance companies around the globe will continue to operate with their current names pending local regulatory requirements and 'other considerations' to help effect the transition to the new Chubb name. "The transition has no impact on policies or coverage in force," added the group. Mr Greenberg explained the decision to call the new group Chubb rather than ACE. "Chubb is a unique name with 130 years of heritage. It stands for excellence, quality and service-these are attributes that we share and value. I want our customers and distribution partners to immediately associate the new Chubb with excellence because that is what we will provide," he said. Mr Greenberg said that the new group would focus heavily on quality of service, delivery and the 'craft' of insurance. This is exactly what risk managers worldwide have been calling for during recent times. "The three core truths about the new Chubb-superior underwriting, superior service and superior execution-are our North Star. Together what they say to us is superior craftsmanship. When well-managed, insurance is a precise, demanding and human craft. As craftspeople, we conceive, craft and deliver extraordinary insurance coverage and service that our customers deserve," said Mr Greenberg.

ACE becomes Chubb and creates world’s biggest publicly traded insurer

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