Chubb confirms Hiscox takeover talks

NEW YORK - US insurer Chubb has confirmed it is in talks to acquirespecialist UK insurer Hiscox. The company said it has "made an approach" toHiscox to make a cash offer for the 73% of the shares it does not alreadyown. Chubb added that discussions are at a preliminary stage and it has notyet had the opportunity to complete its due diligence on the issue. Thepreliminary value of Hiscox shares has been put at 170p each, though Chubbsaid that could change. Ratings agency Standard & Poor's has placed its"BBB+" long-term counterparty credit and insurer financial strength ratingson Hiscox Insurance Co on CreditWatch with positive implications. Chubb(whose principal operating entities are rated "AAA") already has a 27% stakein Hiscox which it acquired towards the end of 1998 after paying 225p pershare.