Hartford Financial rejects Chubb's hostile buyout bid, stock falls

Shares of Hartford Financial Services Group Inc. /zigman2/quotes/207281914/composite HIG +2.01% dropped 1.1% in premarket trading Tuesday, after the property and casualty insurer said it has rejected Chubb Ltd.'s /zigman2/quotes/209397502/composite CB +1.49% unsolicited buyout bid. Chubb's stock rose 1.3% ahead of the open. Hartford's stock had soared 18.7% to a 13-year high on March 18 after the company said it received a bid from Chubb that valued Hartford's stock at $65 each, which would imply a $23.24 billion market capitalization for Hartford. On Tuesday, Hartford said entering into a discussion with Chubb regarding a merger "would not be in the best interest of the company and its shareholders." Hartford's has rallied 119.1% over the past 12 months through Monday and Chubb shares have run up 66.7%, while the SPDR S&P Insurance ETF /zigman2/quotes/205505650/composite KIE +2.97% has hiked up 75.8% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.89% has gained 76.1%.

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Hartford Financial Services Group Inc.

US : U.S.: NYSE

$ 67.04

+1.32 +2.01%

Volume: 3.57M

March 20, 2023 4:03p

P/E Ratio

12.30

Dividend Yield

2.54%

Market Cap

$20.57 billion

Rev. per Employee

$1.19M

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Chubb Ltd.

US : U.S.: NYSE

$ 189.59

+2.79 +1.49%

Volume: 2.30M

March 20, 2023 4:00p

P/E Ratio

15.13

Dividend Yield

1.75%

Market Cap

$77.24 billion

Rev. per Employee

$1.27M

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SPDR S&P Insurance ETF

US : U.S.: NYSE Arca

$ 38.42

+1.11 +2.97%

Volume: 1.60M

March 20, 2023 4:00p

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S&P 500 Index

US : S&P US

3,951.57

+34.93 +0.89%

Volume: 0.00

March 20, 2023 5:16p