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Allianz considers making bid for The Hartford: report

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Allianz is reportedly considering making a takeover bid for The Hartford, prompted by Chubb’s $23.2bn bid early this month.

Bloomberg reported that Allianz was discussing options with advisers over the viability of a deal.

Sources told the news outlet that, while Allianz views The Hartford as a desirable US P&C target, it is also reluctant to enter a bidding war with Chubb due to the lack of synergies any fusion would yield.

Bloomberg reported that Allianz’s deliberations were at an early stage and that it could decide against pursuing the deal, noting that it has mainly avoided large M&A deals.

The Hartford’s board unanimously rejected Chubb’s unsolicited bid last week, and in a statement implied that it would not actively seek rival bids from other potential suitors.

However, its shares have remained above the value of Chubb’s $65-per-share offer, closing Friday at $67.70.

Allianz on Friday agreed to pay EUR2.5bn ($2.9bn) for the Polish operations of Axa.

It earlier this month agreed to pay EUR330mn for Aviva’s Italian P&C entity, and in December it forged a deal to buy the Australian general insurance operations of Westpac for A$725mn ($553.1mn).

In 2018 it abandoned a project to bid for XL Group, leaving the Bermuda carrier to be purchased for $15.3bn by France’s Axa. Allianz’s abortive pursuit of XL was unreported at the time but came to light in Axa/XL bid documentation.

The German carrier has a relatively small footprint in the US compared with Chubb or other peers.

The Hartford’s market value was $24bn as of Friday’s close. Chubb has a market cap of $71.9bn, while Allianz was worth EUR88.1bn as of Monday morning. Its shares were little changed at EUR213.30.

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