Company to begin trading on NYSE under the symbol "CB" tomorrow
Brand stands for superior underwriting, service and execution
Expense synergies remain on track
News provided by
ACE Limited
Jan 14, 2016, 06:03 ET
ZURICH, Jan. 14, 2016 /PRNewswire/ -- ACE Limited (NYSE: ACE) announced today that it has completed its acquisition of Chubb, creating the world's largest publicly traded property and casualty insurance company. ACE paid approximately $29.5 billionin the aggregate in cash and stock, based on the most recent closing price of ACE Limited shares and the number of outstanding shares of The Chubb Corporationcommon stock at the time of closing. Effective immediately, ACE is adopting the Chubb name globally and the company will begin trading tomorrow on the New York Stock Exchange under the symbol "CB." The company is also formally launching the new Chubb brand, including its visual identity and "signature." The new Chubb brand stands for superior underwriting, service and execution – attributes shared by both ACE and Chubb.
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"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 G. Greenberg, Chairman and CEO of Chubb Limited. "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. 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."
Leading Market Positions
Chubb is the world's largest publicly traded P&C insurer. On a pro forma basis, the company has market capitalization of $51.2 billion, annual gross written premiums of $37 billion and total assets of approximately $150 billion. Chubb operates in 54 countries and is a leader in industrial commercial and specialty P&C globally, professional lines globally, and U.S. middle market commercial P&C. The company is the #1 provider of personal P&C insurance and risk services to U.S. high net worth individuals and families and is a global leader in personal accident and supplemental health insurance.
Acquisition Integration Progress
Following the acquisition announcement on July 1, 2015, both ACE and Chubb engaged in extensive integration planning. In a series of announcements since then, the company named the intended leadership teams for its business segments, major U.S. and international business units, and key functions, including claims. Those appointments become effective today. The company continues to expect to realize annual expense savings of approximately $650 million pre-tax by 2018. The company 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.
Attractive Shareholder Returns
As previously announced, the transaction is expected to be immediately accretive to earnings per share (EPS) and book value and, by year three, the transaction is expected to be accretive to EPS on a double-digit basis and to be accretive to ROE. It is anticipated that the ROI will exceed ACE's cost of capital within two years, result in a double-digit return by year three, and tangible book value per share is expected to return to its current level in three years.
Timing of Chubb Limited Name Change and Local Insurance Company Mergers
The Chubb Limited parent company name will be official upon a publication from the Swiss Commercial Register, which is expected within a few days. While the company commences business operations and marketing activities globally under the Chubb name effective immediately, local ACE and Chubb insurance companies around the globe will continue to operate with their current names pending local regulatory requirements and other considerations for effecting the transition to the new Chubb name. The transition has no impact on policies or coverage in force.
Introducing the New Chubb Brand
Mr. Greenberg commented on different aspects of the new Chubb brand and visual identity:
On adopting the Chubb name
"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."
On the craft of insurance
"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."
"As craftsmen, we adhere to certain ideals:
- Excellence in all we do – we hold ourselves to exacting standards of technical proficiency.
- Constant improvement – we are a learning organization. We are constantly searching for ways to improve our craft.
- Global reach and local expertise – we apply our craft locally all around the world.
- A can-do attitude – we are optimistic about our future and we have an enthusiasm to serve our customers and business partners with utmost speed and energy."
On our new logo and visual identity
"Because we are creating a new path, we needed a visual expression to bring our new vision to life. It starts and ends with the Chubb name. Our identity – who we are – comes from our name, which is a symbol of quality and strength. So we have chosen a new logo that is a simple expression of our name, with no extra symbols or visual distractions. It's a simple, refined, modern expression of Chubb. To balance the simplicity of the new Chubb logo, we have chosen an out-of-the-box approach with colors. There will be many colors to represent the new Chubb brand – nine to be exact. These colors reflect the diversity and energy of our culture, our thinking, global presence, the many different customers we serve and the many products we offer."
On the new Chubb "signature"
"Craftspeople take personal accountability for their work, often signing their products. At Chubb, we should all be proud to sign our name to whatever work we do. That is why atthe end of every Chubb piece of work it will be signed "Chubb. Insured." This is not a tagline – it's our signature, our mark of craftsmanship."
"We are creating a new identity from our shared DNA," Mr. Greenberg concluded. "Our new identity is vibrant and full of life, anchoring us to our future, not to our past. We look forward to focusing on our craft of insurance to create significant value over time for our shareholders and to deliver unmatched quality and service to our customers and distribution partners."
About the New Chubb
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is distinguished by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, underwriting excellence, superior claims handling expertise and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 30,000 people worldwide. Additional information can be found at: new.chubb.com.
Cautionary Statement Regarding Forward-Looking Statements
All forward-looking statements made in this communication, related to the acquisition, potential post-acquisition performance or otherwise, reflect the company's current views with respect to future events, business transactions and business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "continue," "could," "future," "project" or other words of similar meaning. All forward-looking statements involve risks and uncertainties, which may cause actual results to differ, possibly materially, from those contained in the forward-looking statements.
Forward-looking statements include, but are not limited to, statements about anticipated accretion to earnings per share, return on equity and return on investment; the benefits of the acquisition, including future financial results; the company's plans, objectives, expectations and intentions; integration of the acquired companies; and other statements that are not historical facts. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, without limitation, the following: the possibility that any of the anticipated benefits of the transaction will not be realized; the risk that integration will be materially delayed or will be more costly or difficult than expected; the challenges of integrating and retaining key employees; the possibility that the anticipated synergies and cost savings of the acquisition will not be realized, or will not be realized within the expected time period; diversion of management's attention to integration from ongoing business operations and opportunities; general competitive, economic, political and market conditions and fluctuations; and actions taken or conditions imposed by the United States and foreign governments and regulatory authorities. In addition, you should carefully consider the risks and uncertainties and other factors that may affect future results of the combined company described in the section entitled "Risk Factors" in the joint proxy statement/prospectus dated September 11, 2015 that was delivered to ACE Limited's and The Chubb Corporation's respective shareholders, and in ACE Limited's and The Chubb Corporation's respective filings with the Securities and Exchange Commission ("SEC") that are available on the SEC's website, located at www.sec.gov, including the sections entitled "Risk Factors" in ACE Limited's Annual Report on Form 10–K for the year ended December 31, 2014, which was filed with the SEC on February 27, 2015, and "Risk Factors" in The Chubb Corporation's Annual Report on Form 10–K for the year ended December 31, 2014, which was filed with the SEC on February 26, 2015. You should not place undue reliance on forward-looking statements, which speak only as of the date of this communication. ACE undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE ACE Limited
