Zurich Insurance Group AG abandoned a $8.7 billion offer for RSA Insurance Group Plc as the Swiss company grapples with a surge in claims that will lead to a quarterly loss at its biggest unit.
Zurich has arranged $8.4 billion in financing for the takeover of smaller rival RSA Insurance Group Plc, according to people with knowledge of the plan, signaling the Swiss insurer is getting closer to proceeding with a formal offer.
RSA Insurance Group Plc rose in London trading after Switzerlands Zurich Insurance Group AG proposed to buy the company for about 5.6 billion pounds ($8.8 billion).
With Zurich Insurance Group AG on the verge of pursuing its biggest acquisition in more than a decade, Europe is poised to add to the consolidation that is sweeping the industry globally.