Exit Options for John Hancock Bond and Corporate Finance Group: Hanover Communications In... - 28 Strategic Investors

View x

Zurich insurance eyeing an $8 billion bid for its British rival RSA

Zurich Insurance is considering a bid for its British rival RSA. Reports are suggesting the bid value to be at $8 billion as insurers look to diversify amidst tighter regulations and toughening market conditions. Zurich, a 45 billion Swiss franc ($47 billion) group offering a range of life and general insurance products, has around $3 billion in surplus cash and could take on debt of up to $5 billion. Zurich’s announcement of a bid pushed the largest one day gain in 23 years for RSA. The European Union rules due in January governing how much money insurers must set aside to protect against market shocks have already prompted some tie-ups. The rules reward insurers with a breadth of geographical or sector coverage, as this cuts their capital costs. With low investment returns and soft insurance prices in many markets, analysts also expect more industry consolidation.

Tags:

Zurich Insurance,RSA