The Hartford, a property and casualty insurance major, has agreed to acquire global specialty underwriter Navigators Group for $2.1bn in an-cash deal.
As per the terms of the agreement, The Hartford will pay $70.00 per share to Navigators stockholders upon the closing of the transaction.
Based in Stamford, Connecticut, Navigators offers tailored insurance solutions designed to protect clients from the complex risks they encounter.
Established in 1974, the specialty insurance company covers both underwriting and claims requirements of its clients in the maritime, construction, environmental, energy, professional services and life sciences industries.
Navigators is also engaged in the US excess casualty and surplus lines market.
Apart from a presence at Lloyd’s, the specialty underwriter also has underwriting operations across Europe, Asia and Latin America. Currently, Navigators has three business segments which are US Insurance, International Insurance and Global Reinsurance.
The Hartford chairman and CEO Christopher Swift said: “We are excited to announce the acquisition of Navigators, which we are confident will achieve key strategic and financial objectives for The Hartford.
“It expands our product offerings and geographic reach, and adds tenured and proven underwriting and industry talent while strengthening our value proposition to agents and customers. We are optimistic about our combined growth opportunities and expect the acquisition to generate attractive returns.”
Navigators has a workforce of around 820 across 22 US locations and eight other locations across the world. All the employees of the specialty underwriter will be joining The Hartford after completion of the transaction.
Navigators president and CEO Stanley Galanski said: “We look forward to bringing Navigators’ specialty lines capabilities to The Hartford, an organization that shares our commitment to underwriting excellence, attracting and retaining top talent, and delivering exceptional customer experiences.
“Joining The Hartford and leveraging the strength of its balance sheet and quality of its core commercial insurance products, we will create exciting opportunities to deliver enhanced value to our brokers and policyholders.”
The deal, which is subject to shareholders’ and regulatory approvals and other customary closing conditions, is anticipated to be completed in the first half of 2019.