Chubb Sells Off Its Stake In British Insurer

NU Online News Service, April 9, 4 :15 p.m.EDT?The Chubb Corporation has sold off its stake inHiscox, a Lloyd's of London company, for some 89 million Britishpounds (U.S. $164 million.)[@@]

Chubb told National Underwriter it would not comment onthe sale, but Hiscox explained in a statement that the Warren,N.J.-based Chubb had sold all of its 54.5 million Hiscoxshares?which represent an 18.7 percent holding in the Britishinsurer?at 165 pence per piece.

Robert Hiscox, chairman of Hiscox, stated, "We are pleased?Thisremoves an overhang from our register and will improveliquidity."

Chubb's sale of its Hiscox holding brings to a conclusion whathas been a sometimes rocky relationship between the twoinsurers.

Chubb had a 28 percent stake in Hiscox before launching atakeover bid in 2001, but the British insurer gave a cold shoulderto the bid, citing an inability to reach agreement on Chubb'soffer. Chubb's 28 percent stake was then subsequently diluted inSeptember 2002 when Chubb decided not to take part in a 110.5million- pound rights issue by Hiscox.

Chubb is one of the largest directors-and-officers liabilityinsurers and is a major insurer of high-value homes and valuables.For full-year 2003, Chubb's net income came in at $808.8 million,compared with net profit of $222.9 million reported in 2002, whenthe company took a $741 million pretax charge for asbestos andenvironmental loss reserves.