Chubb Still Interested in Hiscox

January 2, 2002

Chubb Corp. is reportedly still interested in acquiring London-based specialty insurer Hiscox Plc, despite the rejection of a friendly offer made last January. It’s raised its stake in the company to over 28 percent and stands poised to make hostile takeover bid.

Hiscox is not only one of Lloyd’s largest operations, but also does substantial retail business in property/casualty lines for high net worth individuals, professional liability, and coverage of corporate special risks, particularly kidnap ransom and extortion.

Chubb’s friendly offer of 210 pence a share, valued Hiscox at around $455 million, but the family group, led by Robert Hiscox, rejected the offer as too low. Under London Stock Exchange rules Chubb was not allowed to follow up the rejected offer with a hostile bid for a year. That period is about to expire, and according to a report in The Independent newspaper, Chubb recently increased its stake to 28.3 percent.

As Hiscox shares are currently selling for around $1.07 a share, Chubb’s offer of close to $1.50 a share might seem very attractive, despite the announced opposition to the deal by Robert Hiscox and other family members.

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