CNA to Buy Lloyd's Hardy for $227 Million

NU Online News Service, March 22, 2:29 p.m. EST

CNA Financial Corp. says it has agreed to buy specialty insurer Hardy Underwriting Bermuda Ltd. for about $227 million.

The merger agreement, to be implemented under the Bermuda Companies Act, has been approved by the board of directors of both companies but is subject to regulatory approval and Hardy shareholders' approval.

“While Hardy’s recent results reflect the extraordinary level of natural catastrophe losses across the global insurance industry, the Hardy franchise is built on a strong foundation and has a bright future,” says Thomas F. Motamed, chairman and chief executive of CNA, in a statement.

Hardy posted a net loss of $66.6 million before taxes in 2011, and a combined ratio of 121 as major catastrophe events accounted for 38 points. Hardy posted $105 million in catastrophe losses and an underwriting loss of $62.45 million.

After assessing losses from flooding in Thailand, the company in December announced an internal strategic review, with the purpose of finding an owner or partner.

The deal is expected to close in the second quarter, at which time Hardy shareholders are scheduled to receive about $4.44 for each common share. 

Hardy’s CEO, Barbara Merry, and Patrick Gage, director of underwriting, will continue to lead Hardy.

Hardy underwrites marine and aviation, property and specialty business, and has a property reinsurance account in the Lloyd’s market.

Comments

Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Unit used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.