Zurich weighs RSA takeover as deadline looms
Global insurer Zurich has until Tuesday evening if it’s to make a bid for UK-based RSA. Zurich announced that it was weighing the deal at the end of July but under London Stock Exchange rules it will have to wait for another 6 months if no offer is made by the deadline and RSA do not request an extension. If there is a deal Zurich would be the largest commercial lines insurer in the UK and would get a stronger foothold in Canada. Price is the main divide between the two companies with RSA CEO Stephen Hester maintaining that Zurich’s £5 billion (U$7.8 billion) offer is someway short of the group’s value.
Report names US cities most at risk from storms
All coastal areas are at risk in the event of a “100 year hurricane” but a
new report suggests that the largest losses are concentrated in relatively few locations. The Karen Clark Company says that Tampa/St. Petersburg is the metro most at risk of flooding damage, with losses estimated at $175 billion with New Orleans and New York likely to see losses of at least $100 billion. The study warns that although Florida has not experienced a major storm surge resulting in large losses for many years, it continues to be at risk.
Independence Blue Cross not planning to merge
While many in the health insurance sector are merging or seeking to do so, one large US company says it prefers to go it alone, for now at least. Philadelphia-based Independence Blue Cross which has 7 million customers across 24 states says that it is large enough to be able to stay independent but CEO Daniel L. Hilferty told Philly.com that it is considering all options: "We believe that we are of a size that if we continue to go it alone, we will be very successful, but we are very open to exploring strategic alliances, collaborations, and who knows what that means in terms of consolidations down the road.” Despite Aetna eating into the insurer’s market share it still enjoys 50 per cent of its core territory in south east Pennsylvania. The firm has undertaken a number of partnerships with other Blue Cross operators and wants to continue to build those partnerships.
