Chubb Corp. Will Be Sold To Switzerland-Based Insurer For $28.3 Billion

The Warren-based insurance company Chubb Corporation has just announced that ACE Limited, a global property and casual insurer based in Switzerland, will buy the company for approximately $28.3 billion in cash and stock.

As part of the agreement approved by the board of directors of each company, Chubb shareholders will receive $62.93 in cash and a 0.6019 of a share of ACE stock for each Chubb share they own - approximating a total of $124.13 per share, according to NJ Biz.

Once the transaction is closed, Ace will own 70 percent of the company and it’s CEO Evan Greenberg will run the combined insurance carrier, according to Biz Journals.

“This transaction advances our strategy in a meaningful way and represents an outstanding opportunity to create significant value over a reasonable period of time for both Ace and Chubb shareholders,” Greenberg said in a prepared statement.

Although Chubb’s main offices will be based out of Zurich, Switzerland, it’s Warren office will be used for the combined company’s North American unit. Current Chubb President and CEO John Finnegan will work as executive vice chairman for external affairs of North America, according to ABC News.

In order to be finalized, the deal still needs approval from Ace and Chubb shareholders.