More than 98 percent of ACE shareholders participating in the vote signed off on each merger-related agenda item, ACE said. Chubb shareholders separately approved the deal by similar percentages, though there was some contention over an $80 million golden parachute payment slated for Chubb CEO John Finnegan, who helped seal the deal to sell the venerable insurer to ACE.
ACE approved agenda items including changing the name of the combined company to Chubb Ltd. once the deal closes in the 2016 first quarter. Also, four existing members of the Chubb board of directors were elected to the ACE Ltd. board, effective once the M&A transaction concludes.
Chubb shareholders will get $62.93 per share in cash, and 0.6019 shares of ACE common stock for each share of Chubb common stock.
Chubb reported $601 million in net income in its 2015 third quarter, or $2.60 per share. That compares to $594 million, or $2.47 per share in Q3 2014. Chubb touted the numbers in a release, asserting that the results reflect “the highest net income per share for any quarter in Chubb’s history.”
Overall investment gains helped with the final result, with a twist. Third quarter net income reflected net realized investment gains of $82 million before tax, versus $110 million before tax in the 2014 third quarter.
Chubb’s combined ratio came in at 83.5, an improvement over 85.8 produced over the same period last year.
Net written premiums hits $3.2 billion, on par with the same year-ago period. While premiums were up 4 percent in the U.S., they dropped 12 percent outside of the U.S. Also, property/casualty investment income after taxes for Q3 dropped 6 percent, coming in at $255 million, compared to $270 million in Q3 2014.
One thing that helped during the quarter were moderate catastrophe losses. Chubb said the impact of catastrophes during Q3 was $32 million before tax, versus $74 million in the 2014 third quarter.
Broken down further, Chubb saw net written premiums dip 1 percent in its personal insurance arm, compared to 2014, but grow 3 percent for commercial insurance. Chubb Specialty Insurance saw net written premiums decline 3 percent.
Source: The Chubb Corp.