Chubb exploring $21 billion deal for Hartford: Report

(Reuters) – Chubb Ltd. is considering buying smaller rival Hartford Financial Services Group Inc. in a deal that would value the company at $21 billion, CNBC reported on Thursday, citing Bloomberg News.

Chubb has made a preliminary takeover approach for Hartford, according to the report.

Hartford's shares soared 11% on the news, while Chubb's stock was marginally lower.

As of Wednesday's close, Chubb had a market capitalization of around $77.74 billion, while Hartford's market cap was $20.52 billion, according to data from Refinitiv.

A potential deal comes against the backdrop of rising property and casualty insurance rates. The global insurance industry has also faced rising claims related to the COVID-19 pandemic.

Chubb and Hartford did not immediately respond to a Reuters request for comment.