ACE Limited and The Hartford Financial Services Group: Possible Acquisition Amid Industry Turmoil

Bloomberg and Datamonitor are reporting that ACE Limited, a Bermuda-based insurance and reinsurance company, is considering an acquisition of the property and casualty insurance business of The Hartford Financial Services Group, Inc., a US-based diversified insurance and financial services company. The Hartford has retained Goldman Sachs to manage the sale process, with estimated worth ranging from $4,000 million to $8,000 million. Reportedly, Allianz SE, Munich Re Group, MetLife, Inc., and The Travelers Companies, Inc. are also in the running as possible bidders.

Key Takeaways:

• ACE Limited is considering an acquisition of the property and casualty insurance business of The Hartford Financial Services Group, Inc. (Hartford).
• The estimated worth of the business is between $4,000 million and $8,000 million.
• Hartford has retained Goldman Sachs to manage the sale process.
• Other possible bidders for the insurance business include Allianz SE, Munich Re Group, MetLife, Inc., and The Travelers Companies, Inc.
• ACE Limited has a history of entering new markets, including the US life reinsurance market in 2006.
• The company has exited some areas, such as its 2012 sale of its regional US business to HCC Insurance Holdings.

Statistics:

• Estimated worth of the business: $4,000 million to $8,000 million.
• Number of possible bidders: 5 (ACE Limited, Allianz SE, Munich Re Group, MetLife, Inc., and The Travelers Companies, Inc.).
• Date of initial report: April 28, 2009.

Sources:

• Bloomberg
• Datamonitor Financial Deals Tracker via COMTEX
• Datamonitor
• SmarTrend Alert