ACE Ltd., which recently announced a $28.3 billion deal to acquire The Chubb Group, is doubling its terrorism, political violence and war insurance capacity.
The plan is for ACE to boost its insurance capacity from $50 million to as much as $100 million for each of the three risks. Brokers and their clients in the U.K. and Continental Europe will be able to tap into the added capacity, with a focus on larger multinational business clients who have growing global exposures.
“Brokers and clients are looking for certainty to confront the challenges of an increasingly volatile global environment,” Piers Gregory, terrorism and political violence underwriting manager for ACE Overseas General, said in prepared remarks. “They want to ensure that their assets and people have appropriate terrorism and political violence cover wherever they are located and however the threat manifests itself—be it terrorism, civil disturbance, riot, political violence or even full-blown war.”
ACE said it is expanding the insurance coverage in the wake of its research that showed 68 percent of risk managers in Europe, the Middle East and Africa see terrorism as a growing concern for business. Another finding: 75 percent of respondents said that recent global events are forcing them to review their security and travel policies.
On July 1, ACE announced it would acquire Chubb in a cash and stock deal. The combined company, as of Dec. 31, on an aggregate basis, had total shareholders’ equity of nearly $46 billion and cash, investments and other assets of $150 billion.
The combined company will carry on with the Chubb name.
Source: ACE Ltd.