On Wednesday, Shares of ACE Limited (NYSE:ACE), gained 0.80% to $102.49.
ACE Limited, and The Chubb Corporation (CB) declared that the Boards of Directors of both companies have unanimously approved a definitive agreement under which ACE will acquire Chubb. Under the terms of the transaction, Chubb shareholders will receive $62.93 per share in cash and 0.6019 shares of ACE stock. Based on the closing price of ACE stock on June 30, 2015, the total value is about $124.13 per Chubb share, or $28.3 billion in the aggregate. This is the equivalent of $125.87 per Chubb share using ACE’s 20-day volume weighted average share price for the period ending June 30, 2015. Upon closing of the transaction, ACE shareholders will own 70% of the combined company, and Chubb shareholders will own 30%. The consideration represents an about 30% premium to Chubb’s closing price of $95.14 on June 30, 2015.
Together, ACE and Chubb will create a global leader in commercial and personal property and casualty (P&C) insurance, with improved growth and earning power and an exceptional balance of products as a result of greater diversification and a product mix with reduced exposure to the P&C industry pricing cycle. The combined company will remain a growth company with complementary products, distribution, and customer segments, a shared commitment to underwriting discipline and outstanding claims service, and substantially raised data to drive new, profitable growth opportunities in both developed and developing markets around the world. The combination will create efficiencies that will provide flexibility for the company to invest in people, technology, products and distribution in addition to improve the company’s competitive profile. Additionally, the balance sheet’s size and strength will elevate the combined company into the elite group of global P&C insurers. As of December 31, 2014, on an aggregate basis, the combined company had total shareholders’ equity of nearly $46 billion and cash, investments and other assets of $150 billion.
ACE Limited, through its auxiliaries, provides a range of property and casualty insurance and reinsurance products worldwide. The company’s Insurance North American P&C segment offers casualty insurance, environmental, inland marine, professional risk, disaster protection, vacant land and building, and claims and risk administration services; homeowners, automobile, valuables, umbrella liability, and recreational marine insurance; and wholesale excess and surplus lines property, casualty, environmental, professional liability, inland marine, and product recall coverages.
Shares of Genworth Financial, Inc. (NYSE:GNW), declined -0.53% to $7.53, during its last trading session.
Genworth Financial, is a leading Fortune 500 insurance holding company committed to assisting families become more financially secure.
The Genworth #LetsTalk Tour will educate families and assist them to prepare for and manage issues related to aging. Technology plays a dominant role in connecting and educating multiple generations. With that in mind, Genworth partnered with Applied Minds, LLC, a company that provides advanced technology and creative design services, to develop the state-of-the-art next generation Genworth R70i Aging Experience. The R70i Aging Experience is designed for all Americans in order to assist enhance empathy, spark a national conversation about aging issues, and dispel the myths around long term care. For example, it is often incorrectly assumed that Medicare and other supplemental insurance policies will take care of an aging person’s needs in addition to protect their hard-earned assets.
Experience the Physical Effects of Aging
The Genworth R70i Aging Experience functions as an improved and more sophisticated version of Genworth’s original Age Simulation Suit. It allows wearers to experience a variety of the physical changes associated with aging, which are simultaneously measured and graphically illustrated on nearby monitors for onlookers to witness and talk about.
“We know that people are living longer, healthier lives but we also know that the majority of those people will also need some form of long term care,” says Tom McInerney, President and CEO of Genworth. “We have always believed that the first step in planning for the future is having a conversation. The problem is that people don’t talk about it – and most wait too long to have this conversation. For that reason, Genworth has taken an innovative approach to shining a spotlight on the importance of this conversation by creating the Genworth R70i Aging Experience.”
Genworth Financial, Inc. provides insurance, retirement, and homeownership solutions in the United States and internationally. It operates through U.S. Life Insurance, International Mortgage Insurance, U.S. Mortgage Insurance, International Protection, and Runoff segments.
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