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Chubb Spikes On Ace Deal; This Expert Was Watching The Insurer 24 Hours Early

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Chubb Spikes On Ace Deal; This Expert Was Watching The Insurer 24 Hours Early
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Chubb Corp (NYSE: CB)'s $28.3 billion hook-up with ACE Limited (NYSE: ACE) unveiled Wednesday might pique investors' interest in a sector that a former New York Stock Exchange official calls undervalued.

"People don't pay enough attention to it," Georges Ugeux told Benzinga Tuesday.

"It might be the right time for the investors really to understand better the risk and business model of insurance," according to Ugeux, who currently runs the New York investment advisory firm Galileo Global Advisors.

Chubb rose more than 30 percent Wednesday after it agreed to be acquired by Ace for cash and shares equal to $124.13 a share.

Related Link: ACE Shares Selling Off Following Acquisition Of Chubb

"Chubb is an amazing company," Ugeux said prior to the merger announcement. "They do extremely well, but nobody talks about it."

Ugeux didn't discuss merger potential, but said the insurance industry is broadly poised to obtain improved performance from its investment portfolios as interest rates rise.

Among North American insurers, Ugeux also recommended Metlife Inc (NYSE: MET) and Canada-based Manulife Financial Corporation (NYSE: MFC).

In Europe, Ugeux singled out Axa SA (OTC: AXAHY) and Allianz SE (OTC: AZSEY).

In addition to the Chubb deal with Ace, other noteworthy merger agreements in the sector so far this year have included Axis Capital Holdings Limited (NYSE: AXS)'s merger agreement with Partnerre Ltd (NYSE: PRE), Endurance Specialty Holdings Ltd. (NYSE: ENH)'s hookup with Montpelier Re Holdings Ltd. (NYSE: MRH) and XL Group plc (NYSE: XL)'s acquisition of CATLIN GROUP LTD (OTC: CLNGF).

Posted-In: Georges UgeuxAnalyst Color Long Ideas News M&A Top Stories Movers Trading Ideas Best of Benzinga

 

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